PART TWO – ESTABLISHING A BUSINESS CREDIT SCORE _ WHICH IS APPLYING TO COMPANIES THAT WILL EXTEND SMALL CREDIT LINES TO YOUR BUSINESS.
Part two consist of the actual building of your business credit profile, thus aquiring a business credit score, called a PAYDEX SCORE.
Just like your personal credit, in business credit, there are THREE major business credit monitoring services. There are Equifax Business, Experian Business and DnB. There are some smaller bureaus that does play a part in business credit.
Once you have completed the 20 Points Compliance check on your business, you are now ready to start applying to companies that will extend small credit lines at Net 30. Net 30 simply means that, that company will deliver the goods or services that you ordered and your business has 30 days to pay the invoice. This is called Net 30 accounts. These small credit lines or Net 30 accounts will in turn report the credit extended to your company to the business credt bureaus, hence creating a business credit profile and business credit score.
TIERS IN APPLYING FOR NET 30 ACCOUNTS
Since your business is new or is not establising business credit, there are compnaies out there that will extend to you small credit lines that they will in turn report to the business credit bureaus, that will create a business profile and business credit score.
These small credit lines that you can get without having any type of business credit is called TIER 1 – NET 30 ACCOUNTS.
Once you have 3 to 10 of these companies reporting to your business credit profile, you can then move tp the next level of qualification.
The next level will be compnaies that are willing to extend credit to you because you have some type of business credit established. These companies are catageorized as TIER 2 – Net 30 ACCOUNTS.
As you can see, depending on which stage you are in building business credit, we have listed the next level of companies that you should apply to that will probably approve you.
As you build your business credit and know which stage you are, we have a list of all the tiers, that shows which companies are in a specic tier that you can apply to.
We have a list from Tier 1 to Tier 8 listed on our Build Business Credit Page.