Business Credit Building Step 4- Getting Revolving Credit
After 5 payment experiences are established using vendor accounts, obtaining revolving accounts is the next step. Revolving accounts are cards a business owner can use and not be required to pay the full balance owed each month.
Revolving account approvals will begin coming from stores. Store revolving credit must be obtained before the business owner starts getting Visa, MC, Amex, type cards. Most stores will NOT approve a business owner for business credit unless the owner has an established credit profile and score, just like in the consumer world. Vendor accounts must be used first to establish a profile and score, then store credit can be obtained. It usually takes only 90 days or less to establish a score and profile with trade lines.
Most major retail stores offer business credit accounts, although they don’t promote that they do. Major retailers including Walmart, Target, Best Buy, Amazon, Sam’s Club, Costco, Staples, Office Depot, Lowes, Home Depot, BP, Chevron, and most other retailers all offer business credit. And most of these retailers will approve you for new credit once you have a credit profile established, have a good business credit score that results from you paying your bills as agreed, and once you have 5 payment experiences or more established on your business credit profile.
Once 10 total payment experiences are on the credit, an owner can then start applying for Visa, MC, and American Express type credit. Approval amounts will be equivalent to the highest credit limit account on the business report. Try to have 10 payment experiences with at least one of them having a $10,000 high limit. It is essential to keep using the credit, keep applying for more, and talk with credit providers to raise credit limits. If you do this, business credit will keep growing until higher limit credit lines are obtained, within 6-12 months.
Building business credit is truly as easy as building consumer credit once you know the proper steps to take. Now you know the 4 essential steps to take to build business credit that’s linked to your EIN and not your SSN. Now the next step is to take action on the first step and make sure your business is setup credibly. As you are doing this get your business credit report access established. Then you can start building your vendor credit to establish your credit profile and score so you can start securing revolving credit accounts.
If you have followed these steps you will have an established business credit profile and score that you can grow and continue to get more and more credit. Many people ask, “how long does it take to build business credit?” Keep in mind, just like with your consumer credit this is a never ending process. You will always be growing your business credit as your business grows because you’ll have a need to access more and more credit as your business grows.
If you pull a credit report for Walmart for example, you will find that their highest reported credit line has a limit of $50,000,000! You can be assured that they didn’t start out with those high of credit limits, they grew their credit to get those kinds of limits over the course of 40 years.
You may never need a credit line for $50,000,000. But as your company grows you will have an appetite for more and more credit. For this reason, building your business credit is a never-ending process.
You can start getting vendor credit right away. It will then take about 30-90 days for that new credit to report, and then you can start to get revolving store credit cards. If you continue to grow your credit you will qualify for cash credit in only 4-6 months of starting the business credit building process.
Get started today securing your first vendor accounts. This will net you’re a business credit profile and score you can then use to get your hand on real useable store credit, leading to you accessing cash credit to help your business grow.