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Business Credit Building in 30 Days
Business Credit Building in 30 Days
Getting Started with Business Credit
- Business credit is credit in the name of a business and not its owner
- It is an ongoing process and you must do it proactively
- Building business credit will not just happen, you have to make it happen.
- In just 30 days, you can hit the ground running and build business credit, but first, you need to make your business more fundable.
- There is often no personal credit check.
- Personal credit does not matter.
- You gain two times the borrowing power because you will obtain two different credit profiles.
- Business credit builds much faster than personal credit.
- Business credit limits are 10-100% of consumer credit.
Getting Fundable is About More than Building Business Credit
- Yes, fundability will help you get business credit fast, but building fundability also bakes credibility right into your business.
- This will help your business attract prospects and will help you convert more of them into customers.
Getting fundable may even help to shorten your time to close, and it will do so long after the 30 day period has expired
- A lot of these steps will require a phone call to a provider or chatting online.
- To expedite matters, get someone to help you so you can get the preliminaries dne in a total of 2 or 3 days
Fast Business Credit Building: Your Business Name
- Does your business contain the name of its industry?
- That can be problematic if you’re in what is considered to be a risky industry.
- Risk is usually defined as:
- A higher chance of injury on the job
- Businesses which perform more cash transactions than most other companies
- To become more fundable, don’t add the name of a risky industry to your business name
- Deciding your business name can take less than a day
Fast Business Credit Building: Your Phone Number
- A cell phone or home phone number will get your business flagged.
- It will not be considered to be established
- This will harm your business in your quest for fundability
- But you can use Voice Over IP, which enables any phone number to ring any device
- So you can still use your cell phone
- Toll-free numbers are best
- That is, 800 or an equivalent exchange such as 877 or 888
- You also want to have a 411 listing, which you can get via ListYourself.net
- Lenders and credit providers will be looking for your phone numbers, so make them findable
- You can get a toll free number fast through a provider such as Ringcentral
Fast Business Credit Building: Your Business Address
- Working from a residence can be a red flag to lenders and credit providers
- They will check your business address on Google Street View and flag it as residential, and you will be denied business credit
- A virtual business address can address all these issues.
- You get a deliverable address, not a PO box or UPS box, which would also be flagged and generate a denial
- This means an actual brick and mortar address
- Some plans give you access to clerical help, conference rooms, mail forwarding, and more. Some examples are Alliance, Da Vinci, Regus.
- You can contact any of these providers and get a fast live quote
Fast Business Credit Building: Your Business Website
- You must have a professional-looking website and email address
- Your domain needs to be yourcompany.com or .net
- Never use Wix or Weebly
- You will need hosting through a hosting company like GoDaddy
- You can buy a domain and set up a website in about a day. Larger hosting companies will provide services to help if you are inexperienced with this.
Fast Business Credit Building: Your Business Email
- Your email address needs to be on the same domain as your website
Generic professional names work well, such as admin@yourwebsite.com orgethelp@yourwebsite.com
- Don’t use Gmail. Yahoo, or AOL
- Don’t worry about checking yet another email address, you can have any email forward to any other email
- You can set up all of this up at the same time you set up hosting
Fast Business Credit Building: The Secretary of State’s Office
- The Secretary of State’s office has info on every license needed to run your business
- They also have helpful information, like if you need to take continuing education to maintain your license
- Processing time varies, and in some states, it won’t be completed in time
- But even if licensing will come past the 30 day mark, you can at least get started with getting your licensing
- Even business credit providers which insist that you have licenses may make an allowance if you can prove you have put in your application
- Be sure to print and keep copies of receipts and forms
Fast Business Credit Building: Your Business Bank Account
- Many business credit providers will insist that you have a business bank account
- It must be devoted to your business
- This will also help to keep you from accidentally commingling funds
- You can apply for business bank online at many banks, even if the bank has brick and mortar locations
- In particular, if you have a personal bank account, and you have managed it well, you can get a business account fast.
- You can often be approved within as little as 15 minutes online
- But it may take longer for you to get a debit card or checks through the mail
- So to save time, you may want to do this in person.
Fast Business Credit Building: Your EIN and Business Entity
- Visit the IRS website
- Get a free EIN for your business
- Choose a business entity like corporation, LLC, etc
- You can start off as a sole proprietor, but you will most likely want to change to a type of corporation
- This is to minimize risk and maximize tax benefits
- A DBA is not a separate business entity
Fast Business Credit Building: the IRS
- Getting an EIN and choosing a business entity at IRS.gov are both fast
- They will happen as quickly as your internet connection allows
- Doing these things at this stage means you have got a set business address, phone number, etc.
- So you wouldn’t have to change them later
Fast Business Credit Building: SIC and NAICS Codes
- You will, also choose codes at IRS.gov
- SIC and NAICS codes classify your business
- The IRS is moving from SIC to NAICS
- But for now, consider both to be available
- Codes show what your business does
- For example, NAICS code 531312 classifies Nonresidential Property Managers
- If your business could fit under one or more codes, choose the less risky code.
- Lenders and credit providers are far less likely to approve a business if they consider it to be risky.
- Risky often means a higher chance of injury on the job or a business with more cash transactions than the average
- You choose codes at the same time as you get your EIN and select a business entity
- You can get all of this done in less than an hour, internet permitting.
Fast Business Credit Building: Incorporating Your Business
- The amount of time it takes to incorporate will vary
- It will depend on the state you are incorporated in
- It will also depend on the means you use
- In general, online will be faster
- Even if you apply to incorporate online, you may still have to wait a few business days
- In general, you will need Articles of Incorporation
- If you want them drafted quickly and correctly, you will probably need to hire a corporate attorney
- In the meantime, you can be working on some of the other things you need to get fundable and quickly build business credit.
Fast Business Credit Building: Your DUNS Number
- To build business credit, you will need a DUNS number from Dun and Bradstreet
- A DUNS number with three or more reported payment experiences will generate a business credit report.
- Therefore, you will have built business credit
- Visit: dnb.com/duns-number/get-a-duns-number-product.html
- Visit: dnb.com/duns-number/get-a-duns-number-product.html
- The free product will send you a DUNS number within 30 days
- But with the 30 day time frame, you don’t have that kind of time to spend waiting.
- Hence, you will end up spending $229 to get an experienced DUNS number in five business days or less
- $229 with DUNSFile and CreditSignal will also get you monitoring, but it is only monitoring of your D&B business credit scores.
- You will also get alerts when your score changes, and you will get a full basic D&B business credit file
Fast Business Credit Building: Establish Payment Experiences
- Lenders consider your credit history as one of the chief factors when determining creditworthiness
- Making timely payments will demonstrate to anyone looking to do business with your company that you are low risk.
- You can open most credit accounts online in just a few minutes, but it will take longer to see the impact on your credit score
- To save time, you only want vendors which will report to the business credit reporting agencies.
Fast Business Credit Building: Work with Vendors Which Report
- Most vendors don’t report, but three that do are Uline, Crown Office Supplies, and Strategic Network Solutions
- Even vendors which report may need you to reach a certain minimum before they will report
- Crown Office Supplies requires an annual membership.
- Check the fine print and call or chat online with a representative to get information fast
- Keep in mind, it can take over 30 days for reported purchases to show up on your business credit report.
Recap
- When all is said and done, it may take over 30 days to build business credit, but if your business is already set up, that will save time.
- You may need to pay to get everything done faster and correctly the first time, which will also save time.
- But no matter what, once the 30 days have elapsed, you business will be set up and will exude fundability
- A highly fundable business setup will only help you in the years to come
