Hello, would like to get any feedback on how others started building their business credit? financing small deals via private lending?, doing cash deals. (besides guarantee with your personal credit) , how did you start implementing your real estate investor business credit.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
9y
Hey there, I wish I could say I made up this list, but I found this online and saved it to Evernote. Unfortunately I didn't save the source. I'm working my way through these items and recently was approved for a business card with American Express (it wasn't free, though).
Here are my notes:
1. Open Net Terms Accounts
Quill, Uline, UPS, and FedEx. Quill and Uline report to D&B. Use them to order for your home office. This builds a file for you in D&B.
2. Get a D&B number
It's Free!
3. Use your net trade-lines monthly and pay immediately.
I use Quill for toilet paper and Uline for window cleaner and paper towels. This will boost your Paydex to 80 (pays on time) very quickly.
4. Wait 3-6 months. Apply for business store cards WITHOUT a Personal Guarantee
The easiest is Office Depot, BP, Shell, Staples...(I did this with my business -Kerry)
You can also try Sam's Club Business Credit/Mastercard or BJ's World Perks for Business Mastercard.
Once you apply for a business card with Citibank (Office Depot, Shell, Staples), your Experian and Equifax business credit files will start as there will be business inquiries. You will likely get approved from your D&B info but you may have to rinse and repeat on 3 for a little longer for the Mastercards.
5. Use your new store cards, Pay your bills, and don't PG (personal guarantee) if you can help it.
I made the mistake of PGing a secured card with Wells Fargo BEFORE I built the trade lines on my current business and I got stuck with a card with a low limit that is actually hurting my business credit due to util on that card. Wait until after your business can stand on it's own profile for a few major bank cards. After 6 months or so with your tradelines and store cards, app for the Capital One Spark (any of them) or any Amex Business card that fits your spending patterns.
Note: If you app and get approved for your first Synchrony Bank card (Sam's, Lowes, Amazon, etc) the doors open wide and invite you in. Three months of good payment and history with the first card and they'll approve you for the others.