Business Credit/Funding

Business credit is your business's ability to borrow. Your business credit score influences your access to credit products such as credit cards and loans, giving credit agencies, lenders, vendors and suppliers an indicator of how you handle your debts and your likelihood of paying them on time

The first step is to ensure your business is set up credibly so you meet credit issuer and lender standards, before you apply. Next you get real usable credit through vendors. These vendors will give you credit when you have no other EIN credit established and they report this credit to the business reporting agencies.

Within 60 days or less that credit is reported to Experian, Equifax, or Dun & Bradstreet. Once reported, your EIN will then have an established credit report and score.

Using that report and score you can then continue to apply for more tiers of credit where you can start getting access to revolving credit at most stores, credit that’s linked to your EIN and not your SSN and credit that doesn’t require a personal guarantee or personal credit check for approval.

You can continue to grow your credit to obtain fleet cards, even Visa and MasterCard cash credit. And by having business credit established you’ll have a much better chance of getting loans, credit lines, and getting these at better terms.

Dun & Bradstreet is one of the world's leading suppliers of business information and research. Its global database contains commercial data on more than 240 million companies. Dun & Bradstreet also holds the largest volume of business-credit information in the world.

DUNS numbers are used by lenders and potential business partners to help determine the reliability and financial stability of the company in question. It is similar to a social security number but must be requested directly from Dun & Bradstreet

If your business is new, or if you haven't yet established business credit, obtaining tradelines is a great way to begin building your business credit report.

How to ensure creditors and suppliers can validate your business information:

• Incorporate or form an LLC (Limited Liability Company) to ensure your company is seen as a separate business entity
• Obtain a federal Employer Identification Number
• Open business bank accounts in your legal business name
• Set up a dedicated business phone line in your business name and make sure it's listed

Once you've completed the steps above, you can request business credit in your company name. Your business trades then are reported to Experian,  Equifax, or Dun & Bradstreet. creating a robust business credit report that gives lenders and suppliers quality information about your company and boosts your ability to obtain loans, increase credit lines and earn more favorable credit terms.

How Long Does It Take To Get a Business Line of Credit?

The time it takes to secure a business line of credit depends on the lender you’re dealing with. Approval for a business line of credit can range from one day to several months. The application process varies by lender and is usually done online. Some lenders make a decision within the same day, whereas others take a week or two.

Business owners can, however, access information about their Experian and Equifax business credit reports with a Nav account. Nav provides business credit grades for each score as well as summary reports, your personal credit score from Experian, and free tools that may help you build business credit.

It can take 4-6 weeks to process. You do not register your business directly with Equifax or Experian. Once you have confirmed that your business has a D-U-N-S number, you are ready to get accounts that will show up on your business credit reports. Payment history is the most important factor in business credit scores.

To qualify for a business line of credit, you will typically need to have at least 6+ months in business, a 580 - 600+ FICO score, and a minimum of $120,000 in annual revenue. Collateral may also be required, but this requirement depends on the lender you're doing business with and your business's financial information. There are several loan options to choose from without involving credit if you have cashflow or collateral.