Page 22 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know Abour Personal & Business Credit

Strategy to Building your Business Credit

with a Vendor Credit Line

Do you know you can build your business credit with a vendor credit line? Of course,
this is not a piece of common knowledge. But I believe one of the reasons you got this

book is to understand the nitty-gritty of building good business credit.

One of the biggest mistakes most businesses make is not recording a positive vendor

credit line history in their business credit report. Since a positive payment history
increases your chance of getting a nancial loan, it will be a boost to have your positive
vendor credit line history recorded. This way, creditors, lenders, and banks will grade
your creditworthiness higher.

Choosing Vendors that Report
Payment History: The rst
strategy to build your business
credit using vendor credit line
history is to choose vendors that
report to credit bureaus. There are
hundreds of vendors that o er
businesses nancial help, but only
less than 10% report to the credit
bureau. You must ensure that you
meticulously select vendors that
report to the credit bureau to help
your business credit.

Choose Vendors that are
Consistent with Reporting: It is
one thing to choose a vendor that
reports to the bureau; it is another
thing to choose a vendor that is
consistent with reporting. That is,
you want to choose a vendor that
reports monthly. A simple Google
search will bring up a plethora of
lists of companies that report every
month to the credit bureau.

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