Quick ways to build business credit
Quick ways to build business credit
Open vendor lines of credit
A vendor line of credit is credit provided by a vendor that allows a business to receive a product now, while paying for it later. Vendor lines of credit are much easier to get than business credit cards and business loans. Most vendor lines of credit are not secured because collateral is not required to obtain the line of credit. These lines of credit are usually net 30 accounts, which simply means you must pay vendors’ invoices in-full within 30 days, balances do not carry over. Vendor lines of credit are absolutely essential for a business, without much credit history, looking to build business credit.
Buy credit on collateral
Open business credit cards
Opening credit cards is a popular and easy way to build business credit since they also tend to be easier to get than a business loan. Maintaining balances of business credit cards is an effective way to show your business is responsible enough handle business credit. Just be sure that your business is doing this properly as this can also hurt your credit. Make sure you do not open more than a few cards and do not use more than 30% of the available credit balances. Having multiple cards with large payable balances increases your business’ credit risk and will be perceived as being under financial stress.
Remember, in order to build a solid foundation for business credit, you should strive to obtain one bank loan, three business credit cards, and at least 4 vendor lines of credit.
SHELF CORPORATION

HOW MUCH SHOULD THEY COST? WHAT IS THE INDUSTRY STANDARD?
Aged corporations with no transaction history are priced using this general industry formula:
PRICE

Cost of Filing + Cost of Maintenance + Years x ($1000)
Example: Bob finds a Nevada aged corporation that is two years old. The aged corporations cost the incorporator $750 to form and to maintain the corporation. How much is it worth?
PRICE
PRICE = Cost of Corporation + Cost of Maintenance + Years Aged x ($1000)
PRICE = $750 + 2 x ($1000)
PRICE = $2750
$2,750 is the market rate for a two year old Nevada aged corporation. As an alternative, Wyoming aged corporations cost less because their formation and maintenance expenses are substantially less than in Nevada. They are just as good in terms of asset protection and financial privacy, but without the marketing hype. The same corporation formed in Wyoming may only cost $2210.