Keep your business running with vendor credit lines. Vendor credit lines conserve your cashflow, build business credit, and provide thousands of dollars for needed products and services.
According to the SBA, the largest source of lending to small businesses in the United States is vendor credit lines. Over half a million different vendors (businesses) offer lines of credit to their customers.
What is vendor credit anyways? Vendor credit is when a company gives its products to one of their customers now, but allows them to pay for the products at a later date. An example might be an office supplies company who provides its products to a reseller. Usually the products must be paid for within 30 days (Net 30). Depending on the circumstances, however, it is also possible to get Net 15, Net 60, Net 90, or even Net 120 payment terms.
Why bother obtaining vendor credit? There are two major answers to this. The first is that it frees up cash that you might utilize elsewhere. You might need this cash to handle day to day expenses. Even if this isn’t an issue for you, it is still important to build up a solid payment history with your vendors. When it comes time to secure a bank loan, a solid history of repayment of vendor credit will allow you to more successfully secure the loan you need.
A great thing about vendor credit is that it typically isn’t associated with your personal credit: it is only associated with the credit of the business. A shortcoming is that out of the half million vendors who supply credit lines, only about 6,000 actually report to the nationwide business credit reporting agencies. The trick is to select from the vendors that report.
The great thing about our Business Credit Building System is that we have already compiled a list of all the vendors who offer lines of credit and who also report to the credit agencies. For each of them, we have also determined exactly what it takes to get approved, and we also offer this information in our system.
You need to be careful when you apply to these vendors. Every time you get a decline, it will show up in your business credit report. To avoid this, you must be prepared before you apply by understanding the requirements of each vendor. Since you need to secure 5 vendor lines of credit to optimize your business score, this is crucial. Our Business Credit Building System will guide you through this process.
Your personal credit status doesn’t matter, nor does the current status of your business. If you simply follow our detailed guide, your business will be able to obtain the 5 vendor lines of credit it needs to be successful. This is the foundation upon which your business will hereafter flourish.
Once you’ve found and applied to a few reporting vendors and established credit lines with them, business credit cards and business loan opportunities will begin to open up for you. However, it is critical that you do not try to do this alone. That is why we are here: to ensure your success.
If you need help building business credit or funding solutions, contact us today. We can be reached at 888.456.9223. We are offering a FREE e-book, just for visiting our site! Learn how to get $25,000 or even $250,000 to fund your business.
Tags: build business credit, lines of credit, vendor credit line, vendor credit lines
