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To build business credit with an EIN only, the very first thing you want to do is to make sure the business foundation is solid. So the question may be how does the business do this. The answer is simple. Make sure you have a business entity, business address, business phone, business bank account, a professional website and a professional email address. Also, a business license if your business requires one. Once this is done the business has a solid foundation. This does not just provide a solid foundation, it also gives the business credibility. When this is done right this helps the business overcome a lot of the denials that businesses face.
Now, the business is on the path to getting credit in the business name. The business will start applying for starter accounts which are also called vendor accounts that report on the business credit reports. Before applying for business credit make sure the vendor reports to at least one of the credit bureaus. For example, Uline and Quil reports to the credit bureaus. This is being pointed out because 90% of vendors do not report to the credit bureaus. Think about that! That means only 1 out of every 10 vendors report to the credit bureaus.
These starter accounts do not require a personal guarantor when the foundation is solid and is built correctly. To move to the next phase of building business credit the business needs 4-6 starter accounts reporting on the business credit reports. Once this has happened the business can go to the next phase in building business credit which is with revolving accounts. Examples of revolving accounts are Home Depot, Staples, Visa Card and Mastercard. Again there is no personal guarantor, or collateral required.
To many business owners’ surprise this method can fund 80-90% of a business owner’s business.
To find out more about starter accounts, go here.
Join my group here. It is filled with resources and support for entrepreneurs to build their business credit! See what it’s about, here’s the link:
https://www.facebook.com/groups/businesscreditmasterycircle
I will see you on the inside!
About the Author
Kimberly Lewis is currently the CEO of EPC Solutions LLC. She specializes in helping business owners establish excellent business credit scores and then leveraging those scores to access credit and cash for their businesses. For more information on business credit scores, business credit and business loans visit https://epc-solutions.net.