20. Apply for Vendor Accounts

RoseAllure August 28, 2022

There are starter accounts from various lenders that allow you to get credit for any real business, even when the business has no credit history. To get started, you’ll need at least three starter accounts.

Now you can start applying for business vendor accounts that will help you build your business credit profile and scores. Vendors and suppliers listed in this step are the easiest to get approval from and you can use them to conduct your day-to-day business operations. The rest of the vendors are displayed in the Business Listings of our site. It’s essential that you thoroughly understand the approval process and requirements listed for each vendor. As you apply for lines of credit, you can always return to this section for more information and updates on new vendors to apply.

It’s important that you acquire credit from various vendors so that you jump-start operations and help expand your business opportunities. Before you can apply for business funding and bigger business loans, you’ll need at least 5 credit lines ( 3 with Payment Terms: Net 30 and 2 with Payment Terms: Revolving ), but preferably 8 lines of credit ( 5 with Payment Terms: Net 30 and 3 with Payment Terms: Revolving) from vendors who report to all of the three major business credit agencies. The credit sources listed in the Business Funding page will not approve your company unless you already have at least 8 required trade lines, so this is a crucial step.

Always leave your personal information blank when applying for vendor accounts. If you have a vendor representative ask for personal information, such as a Social Security number, tell them that you want to qualify for credit based entirely and exclusively on your business information.

You may need to provide a personal guarantor for the credit line when working with some vendors. Providing a personal guarantor is fine as long as there is no default, which will likely affect that person’s personal credit or finances. You should make an effort to never deliver late payments, as it will harm your business credit.

When you are approved for vendor credit, you must use it immediately and consistently.

As you progress, track the vendors that you have applied to and document your success, as well as the number of active trade lines you have acquired.

The most important factor here is to grow your business by establishing a positive payment history. A single purchase will not suffice; you need to use your credit line each month on a consistent basis. This will allow your business to build strong credit scores with multiple agencies.

The list of cards below is just a suggested broad overview of what will be needed. You won’t need to start on them right away, because you will review them with each step in the upcoming guide.