Business Credit Building Step 3:
Getting Vendor Credit
When you started building your consumer credit
report you probably did so with small limit credit
cards, possibly even secure credit cards.
credit report can be started much the same as a
consumer report often is, with small credit cards,
but in the business world these aren’t secure
credit cards, they just have set repayment terms
versus being open ended revolving accounts.
Your business can get approval for small credit
cards to help you build an initial credit profile.
These types of initial cards in the business world
are often called vendor credit.
You must start a
profile and score
with starter vendors.
Starter vendors are
ones who will give you
initial credit even if
you have no credit, no
score, or no tradelines
(or what’s called payment experiences now). Most
stores like Staples will NOT give you initial starter
credit so DON’T even try applying. Most stores
will NOT approve a business owner for business
credit unless the owner has an established credit
profile and score, just like in the consumer world.
Vendor accounts must be used first to establish
a profile and score, and then you can get store
credit. It often takes 90 days or less to establish a
score and profile with trade lines.
A vendor line of credit is when a company (vendor)
extends a line of credit to your business on Net 15,
30, 60 or 90 day terms. This means that you can
buy their products or services up to a maximum
dollar amount and you have 15, 30, 60 or 90 days
to pay the bill in full. If you’re set up on Net 30
terms and buy $300 worth of
goods today, then that $300 is due within the
next 30 days.
Always apply first without using your SSN. Some
vendors will request it and some will even tell you
on the phone they need to have it but submit
first without it. Most credit issuers will approve
you without your SSN if your EIN credit is strong
enough. If your EIN credit is not good enough,
you might be declined and they then might
ask for your SSN. No matter what ANY credit
representative tells you, you CAN get credit based
on your EIN only.
In the consumer credit world, we call these types of starter accounts as tradelines, but in the business
world they are called payment experiences.
A payment experience is the reporting of an
account to one credit reporting agency.
Some vendors require an initial prepaid order
before they can approve your business for terms.
Some companies like Uline might even require
you buy from them 3 times for them to extend
you credit, if you have no credit established now.
All starter vendors have different requirements to
approve you, but they are great sources to help
you build initial business credit when you have