How to Get Real Estate Business Credit

What This Article Will Cover: 

Even if you are a startup company or have poor personal credit, this article will show you how to get business credit that is connected to your EIN, not your SSN, right away. You will also learn how to get the company credit you like and need right away from big retailers including Walmart, Amazon, Staples, Apple, Lowes, Ford, Best Buy, Visa, MasterCard, Amex, and more. 

Will This Work For You?

Regardless of cash flow, collateral, or personal credit, business credit is the only financial option available. This means that every form of company, even start-ups, can get it.

What is Business Credit?

Credit earned under a company’s name is known as business credit. The company creates its own credit profile and credit score with its EIN number using business credit. This line of credit is in the name of the company and is dependent on the company’s willingness to pay, not the owner’s. With proven business credit, the company is eligible for high-limit revolving store credit cards such as Office Depot, Home Depot, Sam’s Club, Costco, Dell, BP, Walmart, Master Card, Visa, Amex, and auto loans from companies including Office Depot, Home Depot, Sam’s Club, Costco, Dell, BP, Walmart, Master Card, Visa, Amex, and Walmart. In addition, the company would become more lendable, making credit lines and loans more available.

Business Credit Benefits

Any company will benefit from having a line of credit. To begin with, company credit has no bearing on your personal credit and has no negative effects on your credit scores. Since business credit is not dependent on customer credit, you will get accepted even though you have poor credit. You are not directly responsible for your company obligations and no personal warranty is given. Building business credit is a quick process that takes between four to six months to complete. Prospects, rivals, prospective customers of your company, and analysts all have access to your business reports. If you have developed both consumer and commercial credit, you will be able to borrow more money. Business credit rates are 10 to 100 times greater than consumer credit limits (per SBA). Even as a startup company, you can get accepted for business credit if you can’t get a bank loan or alternative funding. You can get loans and credit lines with business finance, which means you can finance your business and expand it with your money. You can get business credit as long as the company is based in the United States, and you can create credit with several companies at the same time. Even if you own a non-profit you can get business credit. To get company credit, you don’t need to buy phony tradelines or shelf-cops.

The condition of your business credit decides whether or not you will be eligible for a business loan, how much money you will be approved for, and the terms you will be required to pay. And if you have no business credit, you will be refused loans depending on the nature of your business credit. And if you have no credit history, you will be given a failing score for your company if you look unestablished or on the brink of bankruptcy. And with only one account reporting, you can boost your credit score and become more lendable. If your credit score improves, business rating agencies will approve you for more revenue, allowing you to get more business credit approvals.

Step 1: Build Business Credibility

Lenders and credit issuers have a secret list of eligibility criteria that you must follow in order to be accepted. You will get automatic approvals if you follow these criteria. If you don’t meet these requirements, your application will most likely be rejected. Before applying for credit or funding, you must first establish your company’s credibility. Set up your entity, preferably a corporation or a limited liability company (LLC), and avoid business names that suggest you’re high-risk. The IRS will provide you with a free EIN number, as well as the licenses you’ll need to work lawfully. Be sure that all web listings match the information on your application; the specifics must be consistent. Avoid using Yahoo or Gmail and instead use a reputable email address and website. A business address is preferable, but a virtual or home address would suffice. Using a street address rather than a PO Box or UPS address. Finally, you will need a toll-free 411 business phone number as well as a fax number.

Step 2: Business Credit Reports

To get started with the company monitoring agencies, check to see if you already have a profile with them. With Dun & Backstreet, you can get your DUNS number. A DUNS number and Paydex ranking are just the first steps in establishing business credit. Before you submit, be sure to correct any inaccuracies or negative products.

Step 3: Get Initial Credit

You can’t get business credit without first establishing a business credit rating and ratings, just as you can’t get consumer credit. You should apply initial tradelines to the company records in one of three forms. The first choice is to purchase D&B’s Credit Builder for $1,500-$2,000. However, this approach just adds to your D&B credit and does not allow you to add most trades. Even as a startup, if you have good personal credit now, you can get up to $150,00 in unsecured, no DOC, 0% financing for your project. This is done by five company credit cards (with cash-out capability) that report to business monitoring agencies but demand a personal guarantee. You get five tradelines with high limits with these accounts. Even if you have no credit, no score, or no trade lines now, you will get initial business credit with start vendors who will give you initial credit. Net 30 words are commonly offered by vendors. You will need to select suppliers that don’t register to credit bureaus and will accept you with no credit history. Before you can get revolving store credit, you must have five of these accounts reporting. Since 97 percent of trade vendors do not report to business rating organizations, finding starter vendors is difficult. Quill, Uline, and Wells Fargo Secured Card are some of the first vendors.

Step 4: Get Revolving Credit

You will start getting revolving accounts with caps 10-100 times higher than consumer credit without a personal commitment until you have five registered accounts. Shop credit cards from most large stores, as well as fleet credit, are examples.

Step 5: Get Cash Credit

You will start getting revolving cash loan accounts with caps 10-100 times higher than consumer credit and auto vehicle lending without a personal guarantee until you have ten registered accounts.