Staring with your top 3 vendors

In the next section "Access Funding", you'll examine and choose your Net 30 vendors for your business, kickstarting this process.

Ensure you download a workbook to manage and oversee vendors effectively..

Facts About Vendor Credit

1. Get the products and services your business needs with payment deferred for 30 days, easing cash flow – known as "Net 30".
2. When your Net 30 accounts report "tradelines" to Dun & Bradstreet, the DUNS system will activate your file.
3. Some vendors will approve your company for Net 30 payment terms upon verification of as little as an EIN number and a 411 listing.
4. Apply first without your SSN. Vendors may request it or mention it on the phone, but submit first without it first.
5. Some vendors require an initial prepaid order before they can approve your business for Net 30 terms or have minimum amount Net 30 orders.
6. You need a total of at least five (5) Net 30 tradelines reporting to Dun & Bradstreet, Experian and Equifax.
7. Use your Net 30 accounts each month, pay your Net 30 accounts in-full and pay them at least 10 days early to get "Low Risk" credit scores.
8. Allow for vendors' reporting cycles to enter systems. 3 "Net" cycles build credit scores.

Understanding the Business Credit Application Process: Tier-Based System



Applying for business credit involves navigating through different tiers, each with its own set of prerequisites. To make this process easier for you, we've outlined a clear, step-by-step guide. Remember, each tier builds on the previous one, so you'll need to meet all the requirements of the preceding tier before moving on to the next.

Track Your Credit Profiles: It's advisable to have access to platforms like Nav.com, where you can review all your business and personal credit scores. This helps you understand where you stand in the process of building business credit.

Tier 1: Getting Started

• Lender Compliance: Ensure 100% compliance with lender requirements.
• DUNS Number: Obtain a DUNS number to establish your business credit file.
• D&B and Experian Info: Ensure your business information is accurate with Dun & Bradstreet and Experian.
• Business Age: Your business should be operational for at least one month.
• Bank Account: Open a business bank account.

Tier 2: Building Foundation

• Previous Tier Prerequisites: All Tier 1 prerequisites.
• Trade References: Have at least 3 trade references with Dun & Bradstreet and Experian.
• High Trade Line: Secure a high trade line of at least $500.
• Credit Scores: Begin building your Paydex and Intelliscore.
• Business Age: Minimum of 3 months in business.
• Banking Activity: At least 3 months of banking activity.

Tier 3: Expanding Credit

• Previous Tier Prerequisites: All Tier 1 and Tier 2 prerequisites.
• Trade References: Increase to 5 or more trade references with Dun & Bradstreet and Experian.
• High Trade Line: Raise your high trade line to at least $2,500.
• Credit Scores: Achieve 60 or more in both Paydex and Intelliscore.
• Business Age: Minimum of 1 year in business.
• Bank Rating: Attain a mid 4 or higher bank rating.

Tier 4: Advanced Credit

• Previous Tier Prerequisites: All prerequisites from Tiers 1, 2, and 3.
• Trade References: Have 10 or more trade references with Dun & Bradstreet and Experian.
• High Trade Line: Elevate your high trade line to $5,000 or more.
• Credit Scores: Reach 80+ in Paydex and 76+ in Intelliscore.
• Business Age: Minimum of 2 years in business.
• Bank Rating: Secure a low 5 or higher bank rating.

Key Points to Remember:

• Review Guidelines: Always check the specific approval guidelines for each credit provider before applying. Applying without reviewing these can lead to being declined.
• Progression is Key: To move from one tier to the next, it's advisable to show progression in your credit lines and meet all the prerequisites of the previous tiers.