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Get a Credit Line for Your Business During a Business Contraction

So, you’re finally doing it. You took the plunge and you started your own small business. But there is so much you need! Whether it is renovations for your location or payroll or the ramp-up costs for getting manufacturing started, all of those things need money. You need to get a credit line for your business, even though we’re in the midst of a business contraction.

Because you are not made of money.

But your business is new, so its credit score is not so hot. As a result, you are probably wondering how to finance a business with bad credit.

But let’s step back a little, because you should also be thinking about where to establish business credit.

Fight the Business Contraction and Get a Credit Line For Your Business

Recession Period Financing

The number of United States banks as well as thrifts has been decreasing progressively for a quarter of a century. This is coming from consolidation in the market along with deregulation in the 1990s, lowering obstacles to interstate banking. See: 

Assets focused in everlarger banks is problematic for local business owners. Big banks are much less likely to make small loans. Economic downturns indicate banks end up being a lot more mindful with financing. Luckily, business credit does not depend on banks. And it doesn’t matter what happens with COVID-19.

Get a Credit Line for Your Business: What a Credit Line Is

A credit line, or line of credit (LOC), is an arrangement between a borrower and a financial institution or private investor which sets a maximum loan balance that a borrower can access.

A borrower can access funds from their line of credit anytime, so long as they don’t go over the maximum set in the agreement, and as long as they meet any other requirements of the financial institution or investor for example, making on time payments. This is the same whether the economy is going through a business contraction or not.

The Advantages

Credit lines offer many unique benefits to borrowers including convenience. Borrowers can use their line of credit and only pay interest on what they use, unlike loans where they pay interest on the total amount borrowed. Credit lines can be reused, so as you acquire a balance and pay that balance off, you can use that accessible credit again, and again.


Credit lines are revolving accounts similar to credit cards, and compare to other kinds of financing such as installment loans. In many cases, lines of credit are not secured, much the same as credit cards are. There are some credit lines which are secured, and thus easier to qualify for.

Credit lines are the most routinely requested loan type in the business world even though they are preferred, true credit lines are uncommon, and hard to find. Many are also very hard to qualify for, requiring good credit, good time in business, and good financials. But there are other credit cards and lines that few people know about that are available for start-ups, poor credit, as well as if you have absolutely no financials.

Try the SBA During a Business Contraction

A lot of credit line types that most business owners imagine come from conventional banks and traditional banks use SBA loans as their prime loan product for small business owners. This is because SBA guarantees as much as 90% of the loan in the event of a default. These credit lines are the most difficult to qualify for because you must qualify with SBA and the bank.

Get a Credit Line for Your Business with SBA Loans and CAPLines, Even During a Business Contraction

There are two fundamental sorts of SBA loans you can normally get. One form is CAPLines. There are actually 4 types of CAPLines that can work for your small business.

You can also get a lower loan amount more rapidly using the SBA Express program. A lot of these programs offer BOTH loans and revolving lines of credit. 

From the SBA … “CAPLines is the umbrella program under which SBA helps business owners meet short-term and cyclical working capital needs”. Loan amounts are offered up to and including $5 million. Loan qualification prerequisites are the same as with other SBA programs.

Seasonal Line

This one advances against expected inventory and accounts receivables. It was developed in order to help seasonal businesses. Loan or revolving are available. 

Contract Line

This one finances the direct labor and material costs of executing assignable contracts. Loan or revolving types are offered.

Builders Line

This one was made for general contractors or builders constructing or renovating commercial or residential buildings. This line is for finance direct labor-and material costs, where the building project serves as the collateral. Loan or revolving kinds are available.

Working Capital

Borrowers must use the loan proceeds for short term working capital/operating needs. If the proceeds are used to acquire fixed assets, lender must refinance the portion of the line used to acquire the fixed asset into an appropriate term facility no later than 90 days after lender discovers the line was used to finance a fixed asset.

SBA Express

You can get approval for as much as $350,000. Interest rates differ, with SBA enabling banks to charge as high as 6.5% over their base rate. Loans above $25,000 will need collateral.

Approval Details

To get approval you’ll need good personal and business credit. Plus the SBA states you should not have any blemishes on your report. An acceptable bank score requires you have at least $10,000 in your account over the very last 90 days. 

You’ll likewise need a resume showing you have industry experience and a well put together business plan. You will need three years of business and personal tax returns, and your business returns should show a profit. And, you’ll need a recent balance sheet and income statement, therefore showing you have the cash to repay the loan.


To get approval you’ll need account receivables, but only if you have them. As for the collateral to counterbalance the risk, usually all business assets will function as collateral, and some personal assets including your home. It’s not unusual to need collateral equivalent to 50% or more of the loan amount. You also need articles of incorporation, business licenses, and contracts with all third parties, and your lease.

Get a Credit Line for Your Business from Private Investors and Alternative Lenders During a Business Contraction

Recession Business Credit Lines Credit SuitePrivate investors and alternative lenders also grant credit lines. These are a lot easier to qualify for than conventional SBA loans. They also call for much less documentation for approval. These alternative SBA credit lines ordinarily demand good personal credit for approval.

Unlike with SBA, many of them don’t demand good bank or business credit approval. Almost all of these types of programs call for two years’ of tax returns. Tax returns have to show a profit. Rates can vary from 7% or greater and loan amounts range from $25,000 into the millions. Loan amounts are generally based upon the revenues and/or profits on tax returns. At times lenders may ask for other financials including a profit and loss statement, balance sheets, and income statements.

Business Contraction Recession Credit Suite

Check out how our reliable process will help your business get the best business credit cards and lines, even during a recession.

Merchant Cash Advances in a Business Contraction

Merchant cash advances have quickly become the most popular way to get financing, in large part because of the effortless qualification process. Businesses with $10,000 in profits can get approval, with the business owner having scores as low as 500. 

Some sources have now even begun to offer credit lines that accompany their loans. You must have at least $10,000 in revenue for approval. You ought to be in business for at minimum one year, however three years is better. Lenders commonly want to see a credit score of 650 or higher for approval.

Loan amounts are ordinarily around $20,000. Lenders frequently do pull your business credit, so you must have some credit already and sometimes lenders will want to see tax returns. 

Rates vary, due to the risk for this program, and there aren’t a lot of funding sources who offer it.

Securities as Collateral for Financing

You can get financing regardless of personal credit if you have some type of stocks or bonds. You can also get approval if you have someone wishing to use their stocks or bonds as collateral for financing. 

Personal credit quality doesn’t matter as there are no consumer credit criteria for approval. You can get approval for as much as 90% of the value of your stocks or bonds. Rates are commonly below 2%, making this one of the lowest rate credit lines you’ll ever see. You can still earn interest as you typically do on your stocks and bonds.

Credit Cards and Lines are Very Similar

Credit cards often offer 0% intro rates for up to two years. This is also extremely valuable for startups in particular. And credit lines let you take out more cash at a much cheaper rate than do cards. These are the main two differences that will affect you between credit cards and credit line. 

Investopedia even says that “lines of credit are potentially useful hybrids of credit cards.”

Both cards and lines are revolving credit. Credit lines are harder to qualify for as card approvals are generally very quick, many times automated, while line require an in-depth underwriting review. Lines usually offer lower rates, per Bankrate card rates average 13% while lines average 4%.

Business Contraction Recession Credit Suite

Check out how our reliable process will help your business get the best business credit cards and lines, even during a recession.

Unsecured Business Credit Cards During a Business Contraction

A lot of these cards report to the consumer credit reporting agencies. They all call for a personal guarantee from you. You can get approval typically for one card max as they discontinue approving you when you have two or more inquiries on your report.

Most credit card companies furnish business credit cards including Capital One, Chase, and American Express. These have rates similar to consumer rates and limits are also similar. 

Some of them report to the consumer reporting agencies, some report to the business bureaus. Approval requirements resemble consumer credit card accounts.


Typically, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they will not approve you for more credit since they have no idea how much other new credit you have recently obtained. 

So they’ll only approve you if you have no more than two inquiries on your report within the most recent six months. Any more will get you declined.

Grab Our Hybrid Credit Line During a Business Contraction

Check out our credit line hybrid. It’s available for all business owners. Get the benefit of 0% rates cards offer, and the cash out capability of a credit line. Get approvals to $150,000. Pay 0% rates for 6 – 18 months, with normal card rates afterwards. No documentation, no tax returns or bank statements are necessary. This program is ideal for startups, high-risk industries, and those who desire low payments. It also works if you don’t want to supply financials.

Our credit line hybrid is a superb choice during this time of economic uncertainty.

With this form of business financing, you work with a lender who concentrates on securing business credit cards. This is a very unusual, very few know about program which few lending sources offer. They can in most cases get you three to five times the approvals that you can get on your own.

This is because they are familiar with the sources to apply for, the order to apply, and can time their applications so the card issuers won’t decline you for the other card inquiries. Individual approvals frequently range from $2,000 – 50,000.

The end result of their services is that you frequently get up to five cards that simulate the credit limits of your highest limit accounts now. Multiple cards create competition, and this means they will raise your limits, generally within 6 months or less of first approval.


Approvals can go up to $150,000 per entity such as a corporation. They actually get you three to five business credit cards that report solely to the business credit reporting agencies. This is huge, something most lenders don’t offer or advertise. Not only will you get cash, but you build your business credit as well so in three to four months, you can then use your new company credit to get even more money.


You get credit with no security, assets, or collateral. Lender has no collateral to collect in case of default. Because there is no collateral, and they don’t look or care about your cash flow, the only thing that matters is your personal credit.

With a 650 you will get just personal cards. But with a 680 credit score, you will get both company and personal cards.


The lender can also get you low introductory rates, usually 0% for 6-18 months. You’ll then pay normal rates after that, typically 5-21% APR with 20-25% APR for cash advances. And they’ll also get you the best cards for points. So this means you get the best rewards.

Like with anything, there are substantial benefits in working with a source who specializes in this area. The results will be far better than if you try to go at it on your own.

Business Contraction Recession Credit Suite

Check out how our reliable process will help your business get the best business credit cards and lines, even during a recession.


You need to have excellent personal credit now, ideally 685 or better scores, the same as with all business credit cards. You shouldn’t have any negative credit on your report to get approval. And you must also have open revolving credit on your consumer reports right now.

Balance/Limit Ratios

They consider your balance/limit ratios on existing revolving accounts. The lower the ratio, the higher the amount of approval. A 30% ratio is a requirement. This looks at overall percentage, and individual percentage on each account.

Credit inquiries are a big factor tying into approval. More than six inquires in six months will be too much. Lenders do not want to see the person is applying for new credit, especially no other revolving accounts.

Guarantors Welcome

Use a guarantor or a credit partner to boost the numbers. Generally these people want a piece of the business in trade for their help. Creditors want to know you’ll pay them back. Most sources will charge 9 to 12% success-based fees. Only pay the fee off what you secure.


All lenders in this space charge a 9-15% success based fee and you only pay the cost off of what you secure. Bear in mind, you get a number of additional benefits and about three to five times more cash using this program than you can get on your own, which is why there’s a fee, the same as all other lending programs.

You can get approval using a guarantor and you can even use a number of guarantors to get even more money. There are also other cards you can get making use of this very same program but these cards only report to the consumer reporting agencies, not the business reporting agencies. They are consumer credit cards versus business credit cards.


They furnish similar benefits including 0% intro annual percentage rates and five times the amount of approval of a single card but they’re a lot easier to qualify for. 

You can get approval with a 650 score and seven inquiries (or fewer) in the most recent six months and you can have a bankruptcy on your credit and other derogatory items. These are a lot easier to get approval for than company credit cards.

With all preceding cards above, you must have good consumer credit in order to get approval but what if your personal credit is not good, and you don’t have a guarantor? 

This is when building company credit makes a ton of sense even when you have good personal credit, setting up your company credit helps you get even more money, and in the absence of a personal guarantee.

Establishing Company Credit During a Business Contraction

Business credit is credit in a business name, in association with the business’s EIN number, and not the owner’s Social Security Number. When carried out properly, you can obtain company credit without any personal credit check and no personal guarantee. This is a thing all other cards above can’t provide.

You can get three types of business credit cards. First is vendor credit, which offers net 30 terms to launch a business credit profile. Then is retail credit, where you will get credit cards with high limits at most shops. 

Next is fleet credit. It’s credit to fuel, service, and maintain business vehicles. And then there’s cash credit, which includes Visa, MasterCard, and American Express cards that you can use anywhere. You can obtain these without any credit check or guarantee. Limits are regularly $5,000 – $10,000 to begin, and can exceed $50,000.

Credit Lines in a Business Contraction: Takeaways

You can get a credit line for your business, if you know where to look. Learn more here and get started toward building company credit, even during a business contraction. The COVID-19 situation will not last forever.

The post Get a Credit Line for Your Business During a Business Contraction appeared first on Credit Suite.

Organisation Credit Cards for Businesses With Good Credit

Company Credit Cards for Businesses With Good Credit

You will certainly locate that the numerous organisation credit scores cards uses can end up being complex, particularly while you are in the procedure of doing some contrast purchasing for the service credit report card that finest fits your demands. These various names for company debt cards likewise suggest considerable distinctions in the attributes provided to the organisation credit rating card owner.

Platinum company charge card function best for those company bank card owners that choose to bring an equilibrium on their account and also that have the capacity to properly handle overhead. Platinum company bank card are normally just given to individuals with exceptional credit rating.

Platinum cards make numerous extraordinary advantages readily available to their cardholders, benefits that are not offered with routine service charge card. Among the factors is that companies that get approved for platinum organisation charge card have high, otherwise sterling, credit report.

A few of the benefits that you obtain from having a platinum organisation charge card might consist of: a forgoed yearly cost, greater credit line, reduced rates of interest, as well as extra financial savings, advantages and also incentives (fraudulence security solution, regular flier miles as well as money back programs). The travel-related advantages you receive from a platinum service bank card likewise consist of traveling mishap insurance coverage, automobile service insurance coverage, shed travel luggage insurance coverage, and also a variety of traveling and also emergency situation solutions while you are taking a trip in an additional nation.

Platinum organisation bank card individuals obtain charitable business-related unique discount rates from taking part vendor accounts, consisting of resort areas, workplace devices as well as automobile services. All points being equivalent, the level of advantages you receive from each getting involved seller will certainly differ, as defined in their disclosures concerning limitations as well as restrictions.

The charge card business does not have much control over these terms that the sellers trouble organisation bank card owners. They make every initiative to bargain the finest feasible terms on part of its company debt card clients. This is why it is likewise crucial for you to provide responses to business bank card provider relating to specific solution locations where you, as a service bank card individual, want to see enhancements.

Organisation bank card business commonly offer a low-priced program to platinum company bank card clients, understanding that platinum organisation charge card owners are a lot more happy to bill overhead as long as they can bring an equilibrium without paying way too much in money fees. Keep in mind, company bank card firms make their make money from those service bank card customers that lug equilibriums on their accounts.

The platinum company credit rating card owner must recognize that the APR on deals is indexed to the greatest prime price within a particular time structure. The company credit score card provider maintains the alternative to select which price within that duration of time.

If you are not a platinum organisation bank card owner yet, however have actually been vigilantly paying your expenses on a monthly basis, charge card firms will certainly probably deal you a platinum company bank card. This is to urge you to maintain your service with them as well as to award you for being an accountable consumer.

You will certainly locate that the numerous service credit history cards provides can end up being complex, specifically while you are in the procedure of doing some contrast purchasing for the service credit history card that finest matches your demands. Platinum, gold, incentives as well as cash money back are some of the language utilized to define a company credit rating card kind. These various names for company credit report cards likewise suggest considerable distinctions in the functions supplied to the organisation debt card owner. The credit report card business does not have much control over these terms as well as problems that the vendors enforce on company credit history card owners. The platinum company credit rating card owner must understand that the APR on deals is indexed to the greatest prime price within a particular time framework.

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Stanford, Wisconsin ready to share big stage

Stanford’s Kathryn Plummer and Wisconsin’s Dana Rettke could one day play for USA Volleyball in the Olympics. But first, they meet for an NCAA title.

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What’s the Best Way to Build Business Credit? We Have the Secret!

Learn the Best Way to Build Business Credit

We can show you the best way to build business credit! Get the kind of business funding that can take your business to new heights!

The Best Way to Build Business Credit – But What’s Business Credit, Anyway?

Small business credit is credit in a business’s name. It doesn’t link to a business owner’s personal credit, not even if the owner is a sole proprietor and the sole employee of the small business.

Accordingly, a business owner’s business and individual credit scores can be very different.

The Benefits

Because business credit is distinct from consumer, it helps to secure a business owner’s personal assets, in the event of a lawsuit or business bankruptcy.

Also, with two separate credit scores, a business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another benefit is that even start-ups can do this. Heading to a bank for a business loan can be a recipe for frustration. But building company credit, when done the right way, is a plan for success.

Individual credit scores rely on payments but also various other factors like credit usage percentages.

But for company credit, the scores actually just hinge on whether a company pays its debts on a timely basis.

The Best Way to Build Business Credit – The Process

Building business credit is a process, and it does not occur automatically. A business will need to actively work to build company credit.

Nonetheless, it can be done easily and quickly, and it is much speedier than building consumer credit scores.

Merchants are a big aspect of this process.

Undertaking the steps out of order will lead to repetitive rejections. Nobody can start at the top with business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

The Best Way to Build Business Credit – Enhancing Company Fundability

A company must be fundable to credit issuers and vendors.

Therefore, a company will need a professional-looking web site and email address. And it needs to have site hosting bought from a vendor like GoDaddy.

Also, business telephone and fax numbers must have a listing on

Also, the business telephone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated strictly to it, and it needs to have all of the licenses essential for operation.


These licenses all have to be in the exact, appropriate name of the company. And they need to have the same business address and telephone numbers.

So bear in mind, that this means not just state licenses, but possibly also city licenses.

Learn more here and get started toward establishing small business credit.

The Best Way to Build Business Credit – Working with the IRS

Visit the IRS website and get an EIN for the small business. They’re totally free. Select a business entity such as corporation, LLC, etc.

A company can begin as a sole proprietor. But they will more than likely wish to change to a type of corporation or an LLC.

This is in order to limit risk. And it will optimize tax benefits.

A business entity will matter when it pertains to taxes and liability in case of litigation. A sole proprietorship means the owner is it when it comes to liability and tax obligations. No one else is responsible.

Sole Proprietors Take Note

If you operate a business as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the company name. Hence, you can wind up being personally accountable for all small business debts.

In addition, according to the IRS, by having this arrangement there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 possibility for corporations! Avoid confusion and significantly reduce the chances of an Internal Revenue Service audit as well.

The Best Way to Build Business Credit – Starting Off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s web sites for the business. You can do this at If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing this, Experian and Equifax will have something to report on.

Vendor Credit Tier

First you should build trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to obtain credit in the retail and cash credit tiers.

These kinds of accounts tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are often Net 30, versus revolving.

Hence, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, like within 30 days on a Net 30 account.


Net 30 accounts have to be paid in full within 30 days. 60 accounts need to be paid in full within 60 days. In comparison with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you made use of.

To begin your business credit profile the proper way, you should get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then make use of the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Helps

Not every vendor can help in the same way true starter credit can. These are vendors that will grant an approval with very little effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may have to apply more than once to these vendors. So, this is to verify you are dependable and will pay punctually. Here are some stellar choices from us:

The Best Way to Build Business Credit – Accounts That Do Not Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can yet be of some worth.

You can always ask non-reporting accounts for trade references. And also credit accounts of any sort will help you to better even out business expenditures, thereby making budgeting less complicated. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move to the retail credit tier. These are service providers like Office Depot and Staples.

Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.

One good example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or higher.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to fix, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or better and a 411 business phone listing.

Shell might say they want a specific amount of time in business or revenue. But if you already have enough vendor accounts, that won’t be necessary. And you can still get approval.

Learn more here and get started toward establishing small business credit.

Cash Credit Tier

Have you been responsibly handling the credit you’ve up to this point? Then move to the cash credit tier. These are businesses such as Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They want to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Additionally, they want you to have an established company.

These are businesses such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are normally MasterCard credit cards. If you have 14 trade accounts reporting, then these are doable.

Learn more here and get started toward establishing small business credit.

The Best Way to Build Business Credit – Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any inaccuracies ASAP. Get in the habit of taking a look at credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See:

At Equifax, you can monitor your account at: Equifax costs about $19.99.

Update Your Data

Update the data if there are mistakes or the data is incomplete. At D&B, you can do this at: For Experian, go here: So for Equifax, go here:

The Best Way to Build Business Credit – Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any inaccuracies in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs normally want you to dispute in a particular way.

Get your company’s PAYDEX report at: Get your company’s Experian report at: And get your Equifax business credit report at:


Disputing credit report inaccuracies generally means you mail a paper letter with duplicates of any proof of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always send copies and keep the original copies.

Fixing credit report inaccuracies also means you precisely itemize any charges you dispute. Make your dispute letter as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you mailed in your dispute.

The Best Way to Build Business Credit – A Word about Building Business Credit

Always use credit smartly! Don’t borrow more than what you can pay off. Monitor balances and deadlines for payments. Paying promptly and in full will do more to raise business credit scores than nearly anything else.

Building company credit pays. Good business credit scores help a small business get loans. Your credit issuer knows the small business can pay its financial obligations. They recognize the small business is bona fide.

The business’s EIN links to high scores and lenders won’t feel the need to ask for a personal guarantee.

The Best Way to Build Business Credit – Takeaways

Business credit is an asset which can help your company for many years to come. Learn more here and get started toward growing small business credit.


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The Top 10 Industries Getting Business Credit, And How You Can Too

All the Cool Kids are Getting Business Credit, Here’s How You Can Get It Too

Getting business credit isn’t necessarily hard, but it does take some effort and planning.  There is a process, and you have to work for it.  Who gets business credit?  How can you get business credit?  Do you even need company credit?  These are all perfectly normal questions, as many entrepreneurs think they have to fund their business based solely on their personal credit.  This just isn’t the case however.

For many, business credit is like the fairy godmother of the business world.  It can take your company and put it in the elite class of businesses which are fundable on their own merits.  While all types of businesses can get business credit, some are getting it more often than others.

Check out how our reliable process will help your business get the best business credit cards.

Top 10 Industries Getting Business Credit

1.      Hospitality

Not so much hotels, but more like the newcomers similar to AirBnb, HomeAway, and VRBO. This is an innovative way to stay when you travel. And more like these are coming along.  It gives consumers options. Consumers like options.

2.      Real Estate

This refers more to house resale, or house flipping, than other types of real estate.  Before the last recession this was big news, and then the bubble burst.  It’s back and stronger than ever for now however.  Of course, there is always the lingering potential pin poke of the next recession looming nearby, but for now, that is not stopping them.

3.      Long Haul Truckers

There will always be a need for an affordable way to get things from one place to another, and long-haul truckers are just that.

getting business credit credit suite 2

4.      Finance

Not just any financial business, but those related to credit building are building company credit right now.  Businesses that help companies and individuals build their credit score are a big deal.

5.      Food Delivery

Services that offer food pickup and delivery services such as DoorDash and GrubHub  are growing and expanding, and they are getting business credit to do it.

6.      Energy Conservation

Energy conservation is huge right now, and companies that are working toward that end are establishing business credit to help make it happen.

7.      Health

There are two factions of the health industry building business credit frequently right now.  Data and file management is in the news as there is a push for records consolidation across the board to ensure patient files are as comprehensive and complete as possible.  Personalized health is also a hot topic, as more and more providers are realizing health care does not have a one size fits all solution. Business credit is helping providers in both areas thrive.

8.      Entertainment Technology (Apps, gaming, streaming)

Netflix, Hulu, and all the other streaming apps prove that this isn’t an industry that is going anywhere any time soon.  Add gaming and the hundreds of new apps that pop up in any given month and you can see why this is an industry that is getting business credit.

9.      Consumer Retail

Consumer retail companies that focus on online retail, or a combination of online and brick and mortar, are using business credit as online retail solidifies its foothold in the retail industry.

10.  Commercial Construction

Contractors working to build commercial property are busy right now.  Business credit helps them get a leg up on the competition.

11.  Bonus!!!!  The Cannabis Industry

Whether it is edibles or CBD products, there is no doubt this industry is growing fast.  Specialty stores selling a variety of CBD oil products are opening on virtually every corner, and with legalities changes frequently from state to state, other shops are popping up too.

While these are the top industries getting business credit, they aren’t the only ones.  If your company doesn’t fit into one of these, you can still join in the fun.  How?  Why?  Do you need or even want to join the crowd?  The answer to the first question is a resounding yes!  You definitely need to.  As far as wanting too, I think you will, if you don’t already.

Check out how our reliable process will help your business get the best business credit cards.

Why Are These Guys Getting Business Credit?

You might think business credit is unnecessary because your personal credit is fine. Maybe you don’t know anything about business credit and think you do not have a chance because your personal credit is shot.  If you have bad personal credit, you can absolutely build business credit that will fund your business.  Suppose your personal credit is fine.  Here is why you need business credit anyway.

Using business credit to handle your finances means personal finances will not be affected by company transactions. If your business goes bust, your personal credit score will stay intact, and you will not be personally liable for your business debts.

Thinking it isn’t an issue because your business is doing fine is a mistake.  Paying business expenses with personal credit cards maxes cards out quickly.  Even if you pay off large chunks every month, the rotating balance is likely very near the limit.  This is because business expenses are large, and personal credit cards tend to have lower limits than biz credit cards.

This affects your debt-to-credit ratio, which can negatively affect your personal credit score even if you make payments on time.  Business credit protects your personal credit score and ensures you have access to the funds you need to run your business.

How to Go About Getting Business Credit

Now that you know why you want to join the crowd that is establishing business credit, you can get busy.  Here is what you need to do.

Apply for an EIN

This is an identifying number for your business that works similar to your SSN.  You apply on the IRS website, and it is free.  Use it on business credit applications instead of your SSN.  You may still need to provide your SSN for fraud prevention, but it will not be used to access your personal credit score.


A business must be incorporated to have business credit. You can choose between forming a corporation, an S-corp, or an LLC.  The idea is that your business needs to be established as an entity separate from yourself in every way.  Incorporation not only accomplishes that, but it also offers you some liability from corporate debts.

Each option varies in cost and amount of protection it offers.  Which one will work best for you depends on your specific business.  Any of them will serve the purpose of establishing your corporation separately for purposes of building corporate credit though.

Contact Information

Your business needs to have an address and phone number that is different from your personal address and telephone number.  The phone number should be toll free, and the business should be listed in the directories with its own contact information.

Website and Email

All businesses these days need a professional, user friendly website to be able to compete.  You also need an email address that is specifically for the business.  Do not use a free email service such as Gmail or Yahoo.  The business email address should use the same URL as the business website.

Bank Accounts

Open a separate business bank account and begin running all business financial activity through that account.  You can pay yourself from this account, but do not run personal expenses through it. Not only will this help separate your business from yourself, but it will also save a lot of time when tax season rolls around.

Getting Business Credit: Get a D-U-N-S Number

This is another identifying number, but it is only used by Dun & Bradstreet.  They are the largest and most commonly used business credit reporting agency, so having a credit report with them is a must.  You can get a DUNS number for free on their website, but they will try to sell you other services.  You do not need them.  Just get the free DUNS number.

Build Business Credit from the Ground Up

Once you have your business separated from your personal information and finances, you can get to work building business credit.  It may seem overwhelming at first.  This is because if you start applying for business credit cards and you do not yet have a credit score attached to your business, you are going to be turned down.  You have to have credit to get credit, and it feel like a vicious cycle.  We know how to break the cycle however.  There is a crack in the circle. We know the “in.”

The Vendor Credit Tier

The vendor credit tier is your way in.  These are vendors that will extend net 30 terms on invoices and then report your payments to the credit agencies.  Once they start doing that, your business credit score will be established and grow from there.

Check out how our reliable process will help your business get the best business credit cards.

You may have to make a few initial purchases with these vendors before you can get net 30 terms.  Some require a minimum amount of time in business, and there may be a minimum income requirement if you do not have business credit.  There are dozens of them with varying requirements.  What they do not require, however, is a credit score.  This is how you start building business credit.

Working Through the Credit Tiers

Once you have 7 to 10 accounts reporting from the vendor credit tier, your score should be high enough to allow you to gain approval from creditors in the retail credit tier.  These are credit cards attached to specific stores such as Best Buy, Amazon, and Office Depot.  There are hundreds of these cards available with varying requirements.  Apply for a few, use them, and as you have more and more accounts reporting your on-time payments, you will qualify for more.

After you have several accounts reporting from the retail credit tier, you will qualify for cards in the fleet credit tier.  These cards are issued by companies like Shell, Fuelman, and WEX to be used for fuel purchases and automobile repairs.

Then, last but not least, the grand prize.  When you have enough accounts reporting from each tier, and if you are keeping current on all your payments, your score will be strong enough for the cash credit tier.  These are the general credit cards such as MasterCard and Visa that are not attached to a specific store.  They typically have higher limits and more rewards options.

From there, the sky’s the limit.  Your business will qualify for all the business credit it needs to continue to not only run, but thrive and grow.

A Few Ways to Use Business Credit to Your Benefit

Once you have all that business credit, what do you do with it?  The short answer is, whatever you want.  That is very broad of course.  There are some scenarios where it can be especially helpful however.

Take Advantage of Special Pricing

Having business credit means you can take advantage of special pricing on inventory.  For example, if you can get a 20% discount on a bulk order, and it is either a big seller or something you use regularly, the savings could be significant.  However, you need the funds available to make the purchase.  Company credit lets that happen without depleting cash reserves.

Float a Cash Gap

Cash gaps can occur for many reasons.  The most common include lags in invoice collection and seasonal gaps.  Company credit can allow you to cover those cash gaps without having to seek additional financing.

Reduce Cost

Used effectively, paying company expenses with company credit cards can actually reduce overall expenses.  I know it sounds totally crazy considering you have to pay interest.  Here how it could work, however.

Imagine you have a business credit card that offers 2% cash back on purchases.  If you make your regular purchases on this card and pay them off each month, you avoid paying interest and reduce the cost of those expenses by 2%.

Expansion and Growth

If you need funds to expand and grow, business credit can help you access those funds.  You may not want to fund a large expansion project with credit cards. But using charge cards wisely can help you build the business credit you need to get a line-of-credit or a traditional loan for a larger project.

You Could Be Getting Business Credit Too

When you read the list of top 10 industries getting business credit, you may think that you don’t stand a chance if you are not working in one of those industries.  If you follow the steps listed above however, you can definitely get credit for your business that is not attached to your personal credit.  This will not only ensure you can access the funds you need to run and grow your business, but also protect your personal finances should your business finances suffer. It’s a win-win, and all you have to do is trust the process.


The post The Top 10 Industries Getting Business Credit, And How You Can Too appeared first on Credit Suite.

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