What are the Types of Business Credit Vendors and why knowing what sets them apart will be the difference between wasting time and money or building fast business credit.
When you finally decide to start building credit for your business
Understanding what part the business credit vendors play in speeding up the process is critical for successful and fast capital for your business
There are 3 types of business credit vendors or business credit trade lines, what they do or how they can help or hinder your business credit growth.
Most business don’t understand how they actually can hurt themselves by getting credit from the wrong business vendor or tradeline that has no positive impact on your Business Credit.
Who or what are the business credit tradelines or the business credit vendors?
Business Credit vendors are the companies that extend credit to your business, such as
and many more....
All of these companies will extend credit to your business and these are your trade lines but all trade lines are not created equal.
Every trade line has their own type of reporting,
who they report to and some don’t report at all
some have a different criterias for access and some want you to personally guarantee credit.
Types of business credit vendors are
- Those that report - the reporting vendors,
- Non reporting vendors
- Personal guarantee Vendors
and I’m going to break each one of those down so we can have a better understanding
of how to use them to accelerate our credit building.
Different Business credit reporting vendors
The first type of tradelines are the ones who actually report to the business credit agencies. These companies will be the reporting business credit trade lines. And these companies report to D&B, Business Experian, Business Equifax, Credit Safe and these companies are actually the ones that really get the ball rolling with your business credit.
It's important to you know who they reporting to so you can know what you need to get your business credit to the next tier, to the next level and the companies that report are the
Start vendors you will really need especially in the beginningbuilding stages, they will get your business credit moving really, really Fast! NAVS business boost video right now is one of my favorites, they will really, really get your business credit moving. So, these are the trade lines that actually report. For complete list of reporting vendors 7 best starter vendors
Non reporting vendors
The next set of vendors are non-reporting trade line vendors. These companies will extend credit to your business, such as revolving credit, but they will not report it. They won’t report when you’re making payments, but they will report when you’re not.
So you get none of the positives but all of the negatives, so once again they will extend credit to your business but they won’t report when you make payments on time or when you do everything right but if you go negative, if you don’t pay them the will absolutely report it to the business credit agencies. Some of these companies are mostly revolving credit, this is
- TD BANK,
- Hertz rentals if they’re still here that is
Companies like these will extend credit to your business but they will not report it. So, these are your non-reporting vendors so be aware of them.
Personal Guarantee Vendors
Finally the third type of business credit vendor is the one that require personal guarantee, so these are the vendors when you do business with they want you to be personally liable for the debt at least in the beginning because some of them will allow you to build into it and then they will remove the personal guarantee.
Most of the phone companies
- Most bank vendors
they want you your business, but they also want you to be liable for the debt/credit that they extend you and also be aware of them to know when you’re signing up for something as a personal guarantee.
I don’t advocate that; I don’t think you should as business sign up for debt that can harm you personally.
Do business with companies that want to do business with you as a business as opposed to being personally liable. Its tedious but it’s better to take the long route to build your business credit so you’re not liable for anything that may go wrong with your business.
- We have the reporting vendors which are the vendors which helps you boost your business and grow your credit.
- We have the none reporting vendors which are the companies which will extend your credit but they not going to report when you’re making payments, they going to report when you’re doing everything right but they will report when you go negative or when you don’t pay your bills.
- And then we have the third type which are the personal guarantee vendors or businesses which will extend your credit, but they want you to personally guarantee that.
Understanding how each vendor reports allows you to know if they are helping
your business credit or not.
Certain vendors can help you move forward in your business, so sometimes being personally liable is good if you actually get a certain account that could move your business forward.
Sometimes you may not want to do business with company that’s going to report it to the business credit agencies. You simply don't have a need for their services, but they will help your business credit grow, so you use them to grow, some you need such as UPS, UPS don’t report but if you have a physical product you’re to be delivering, you want all the benefits business to business services that you’re supposed to get.
Knowing the difference between these 3 types of vendors gives you an advantage when you’re building your business credit.
For list of the steps, vendors and who they report to download
That’s all I want to share with you, if you enjoyed this share it, ask any questions, please comment and let’s see if we can really help someone build their credit business fast.
Business Credit and Real Estate
I’m Ghanaian Body building nerd who Loves Teaching about Business, Business Credit and Real Estate!