Building business credit

Look I don't know what these people are telling you on this forum but it's all nonsense. It's very clear that no one has business credit on this thread. The best way to get infomation about building business credit is to ask people that are/have done it. Not ask people that have no clue about it. Here's my proof - As you can see I have 10 trades on d&b all no pg & 9 on experian business no pg.

I1 by jfrazie7 posted May 28, 2017 at 3:07 PM

I2 by jfrazie7 posted May 28, 2017 at 3:07 PM

Now that we got that out the way i'm guess you watch Youtube and seen my trucking videos about building business credit.. But anyways

0. Business Address thats not a residential address. (You can get a virtual business address)
1. Business Entity (Cost $75-$600 just depends who you go through)
2. Ein (Free through irs
3. D&B Number (Free takes about 30days
4. Business Bank Account (You will need ein & articles to open)
5. Get a 1-800 Number (Freedom voice)
5. Website (Godaddy) (This is so creditors can see what your business does)
Example - www.justinfrazierlogistics.com is mines
6. Get listed with 411, google business, yellow pages
7. Open 5 vendor accounts (DO NOT PUT SS# ON ANY APPLICATION) (Uline, Quill, Seton, Gemplers, Digikey, Grainger) If the online application ask for ss# and you can't skip it do application over the phone.
8. Spend $51 or more at each store. Wait for invoices then pay them.
9. Wait 30-90days for them to report to d&b etc
10. Now you have 5 accounts reporting without a pg. You can move on to business store credit cards. Once you have 10 accounts reporting to d&b you can move on to business credit cards with no pg and fuel cards.

I'm an owner operator age 23 with $250,000 in no pg business credit. Think i'm overqualified to tell you how easy it is.

O and once you have 10+ accounts with d&b and the other agencies you can go to any of the dealerships and get finance since that's what you want anyways without a pg

Why do you need a 1800 number, website, and business bank account? You aren't a real business without it. Go look at any mega trucking company. Knight Transportation has:

Website, business bank accounts, Professional phone number, D&B number with over 100 trades, etc. If you want a mega carrier copy what they are doing

 

My pleasure, I actually specialize in business credit and joined this forum to share some advice. If you have any other questions feel free to reach out. Best of luck!

 

I have a dunno number, but it takes moreally than a dunns. Let me explain a dunns # is attached to your business credit score which is called a paydex score. Dunns is short for dunns and Bradstreet, which is the company that creates, monitor and reports your paydex, sort of like when someone has personal credit , it's reported to the 3 credit bureaus Transunion, Equifax, and Experian, except you have a fico score, which is calculated different than a paydex score, which is based on how fast you pay back the credit that you used that was granted to you.
So it's nothing wrong with getting your Dunns #, because it's part of building your business credit profile, but prior to getting your Dunns ,and in addition to it, you want to set up your business profile correctly.

 

Here's a breakdown of what you need to structure your business correctly, before going to a lender trying to establish business credit. 1.Decide which type of business entity you wold like to set up, Either a Corporation or LLC, not a Sole proprietor, because it's strictly based on using you ssn.
2.Set your business entity up with the state, that you chose to use as you business headquarters, you can get this information and file it on your own, by going to whatever state you chose website, but if your not familiar there arearly companies that you can pay and have them file all your paperwork for you, for a decent fee, not much, depending on which state, I know CA is the most expensive, but still not that much, google companies that set up corporations, and llc's, it shouldn't be no more than $300 - $400 for most states, and no more than $900 - $1,000 for CA. Don't go pay these Law offices, or companies Like 2, 3, 4, or $5000, it's not necessary. 3.Go to the state where you registered your company and get an EIN or TIN , (Employer Identification Number or Tax Identification Number), they both serve the same purpose, it's like a ssn for your company, used for reporting taxes, etc. THIS IS FREE, on your state's website, but if you used a company to set up your corporation or LLC, they may provide this service at a small fee, usually like $30, but if not you can get it free.4. Get a legit phone/ Fax number for your business , there's companies that offer these service's for a small monthly fee, like $10 -$15
5.Get a real physical address for you business, NOT A P.O. BOX OR HOME ADDRESS, this is a Redflag when you start applying to lenders and creditors.
But if you can't afford a real lease to an actual brick and mortor building, that's fine, there's companies that provide this service that gives you access to a real physical address, and allow you to have you mail delivered there for pick up or forwarding , and even have a secretary to answer calls,At minimum $50 monthly, but it's worth it.
6.Get you a legit email address a domain, and get you a webpage, just the basic. There's companies that provide this as well, Like Godaddy, for a small fee, at minimum$10 -$20 monthly.
7. Now go get you a Dunns number FOR FREE, YES FREE, but Dunns and Bradstreet, will try to sell you all kind of credit building stuff, that you don't need.
There's tons of videos on youtube, that will show you how to get your Dunns for free, it's simple.
Now that you have all this in place ,Your business is structured correct and ready to start applying for the first tier of building business credit, which is called Vendor Credit or also referred to as (Net 30 Accounts).
Oh Yeah I'd like to say this when building business credit, soley based on the business, There are 3 tiers
1.Vendor Credit, 2. Store Credit 3. Cash Credit (also referred to as revolving credit, like Major business credit cards, and loans as well )

So with that being said , start off applying for At least 5 Vendor accounts
after you've established 5 payment experiences on time from these 5 Vendors, you will have established a payday score. Next it's time to move onto Tier 2 store business credit, like home depot, lowes, walmart, gas cards etc, these require you to have an established payday score and at least 5 payment experience's on your business credit profile. After you establish 5 store creditors, and pay on time, making sure they are being reported to your business credit profile, it's now time to apply for the Cash or revolving Credit, ( Visa, American Express, bank loans, etc)
It may take some time, but if you do it in the order that I explained, you should be ok, however the key is to get your payday up to at least a 75-80, and at that point getting funding will be no problem for your business. The mistake that many people do is try to jump direct to applying for cash credit and get denied, that's because they haven't established the credit through the tiers.
Hope this helps

 

To restore credit and run EIN two different things.

Here are steps.

Get business lawyer to creat LLC/LLP.
Limited Liability Corporation
Limited Liability Partnership. (Like with wife or buddy).

EIN= Employer Identification Number

Dun number means. Dunn and Bradstreet. It is a Credit Service to evaluate companies strengths, and issues ratings like C,B,A,AA. Etc.

Set up bonding, liability insurance, and list goes on.

Become member of chamber of commerce in different cities, states.

Join associations, guilds, unions, whatever. Strength and name recognition.

Your lawyer will ask if you want to issue private/public stock.

Get account and lawyer on retainer

Get bank accounts set up.

Set up vender and supplier accounts set up.

Lawyer will set up 4 positions. Ceo,cfo, secretary, treasurer for board officials.

Then if your lucky your company nakes money.
Balance sheets get generated and payroll starts moving. Perhaps you even get paid after all expenses.

Then in 3 years if you survive that long you may have built credit as a member of the board/Company with stock.

If you want to do it right, goto One Stip Business Center and get a mentor assigned to help you.

Also suggest a bachelor degree in business management and another degree in Human resources.

While you at it, Get a good shrink to help you figure out why in the hell you read this text thus far.

 

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years ago I worked in finance. One of the fastest ways to build credit scores is to have multiple lines of credit with low balances and that are used every month. So,,,,,,,,, If you have 10 credit cards each with only a $1,000 limit and charge each one $10 (your i-music account, my mothers news paper service, stuff like that) then pay the card off at the end of the month you'll have scores in the 700's in 6 months.