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Essential Business Credit Resources To Start With

Mike Roberts
Written by Mike Roberts

When building business credit, sometimes you have to start with resources and credit lines that are less than (or otherwise different than) what you actually desire.

This is common, and many businesses that are just starting to build business credit may have to utilize vendor credit more than they want, or settle for credit cards with terms that are less favorable than what they had hoped for.

These are just the steps that must be taken to build business credit. It’s a fact of life: you’ve got to start somewhere.You can’t expect to get the best credit with the best terms right out of the gate before your business has proven itself in the business credit system.

So what kind of resources might you start with?

1.Vendor Credit

This is the most common credit resources that businesses just starting with business credit tap into. While it may not seem immediately useful to sign up for a bunch of Net 30 accounts, it’s an extremely important part of the business credit building process.

Net 30, Net 7, and other short term credit accounts with vendors are a valuable tool for building business credit. They will help to open the doors to better credit down the road. The more of these accounts you have, the better.

2. Sub-prime or Secured Credit Cards

Secured Credit cards or other sub-prime cards with lower credit limits and higher interest rates are often where businesses new to the business credit world find themselves starting.

Humble beginnings like this are fine, especially when we consider how they will help us in reaching our long term goals. While you may have to settle for a less-than-stellar credit card, you don’t have to accept just anything offered.

Shop around and avoid things like application fees and large annual fees. Before you apply for any credit, shop around and review discussion boards to find the best cards with the best terms. By doing this, you’ll ensure that your “starter” credit card is as useful to your business as it can possibly be.

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About the author

Mike Roberts

Mike Roberts

Mike has seen how important understanding credit has been in improving his own life. As a result, Mike dedicated himself to teaching others how to improve their lives by raising their credit score and taking control of their personal finances. Mike is an experienced entrepreneur with a passion for knowledge. He’s also a bit of a self-improvement enthusiast, and enjoys sharing what he learns with others.

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