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Business Credit
Business credit is built under the name of the company and its EIN. It has no connection to an owner’s personal credit when developed correctly. If you are in trucking or transport business then it’s vital to build fleet business credit.
Types of Business Credit
Business credit can be classified into three types. You can get vendor credit even if you have not established any other business credit. Vendor credit is often given on a net 30 basis. On the other hand, store credit is available on a revolving basis, which may necessitate some time in business. Most big retailers have store credit. Cash credit is widely available from service providers such as Visa, MasterCard, and American Express. Cash credit is more difficult to obtain and can necessitate more time in the company and more paperwork before certification.
Typical High-Risk Industries
While any enterprise may use cars, certain companies depend entirely on them to provide their services. SIC (Standard Industrial Classification) and NAICS (North American Industry Classification System) standards are used to classify risk. High-risk businesses typically have several aspects in common. There may be a high chance of injuries on the job, or an industry may deal with a lot of cash. This is so regardless of a company’s protection and transaction history. Trucking and many other vehicle-intensive sectors are classified as high-risk industries.
Typical High-Risk Industries
Trucking, transportation and taxicabs are considered a high-risk industries.
Kabbage
Truckers can apply for loans via Kabbage. Loans of up to $250,000 are eligible. One year or more of TIB and more than $50,000 in annual sales are needed. Apply online at www.kabbage.com/truck-driver-loans.
Marathon
Marathon Petroleum Company is a company that sells automotive fuels, asphalt, and niche goods throughout the United States. Their extensive product portfolio is used to finance manufacturing, agricultural, and retail activities. This card provides information to Dun & Bradstreet, Experian, and Equifax. Before applying for several accounts with WEX Fleet Cards, allow ample time between applications so that the account is not flagged as fraudulent. To be qualified, you must have an agency in good faith with the Secretary of State, an EIN with the IRS, an SSN, a business address that matches everywhere, a DUNS number, a business license, a business bank account, a business phone number, and a 411 listing. Marathon will forward your personal credit records to their credit department if they are interested. If you have been in business for less than a year, you can use a $500 deposit instead of a personal pledge. Marathon has net 15 terms available. Apply online at marathonbrand.com
WEX Fleet Card
Wrights Express (WEX Card) has universal fleet cards, heavy truck cards, and enterprise fleet cards that are widely accepted. These cards have features that benefit small companies, such as a loyalty scheme. Until applying for several WEX Fleet Cards accounts, make sure you have ample time between applications. This way, they won’t tag your account as fraudulent. This card provides information to Dun & Bradstreet, Experian, and Equifax. To apply, you must have an agency in good faith with the Secretary of State, an EIN with the IRS, an SSN, a business address that matches everywhere, a DUNS number, a business license, a business bank account, a business phone number, and a 411 listing. If they are interested, 76 will submit your personal credit details to their credit department. If you have been in company for less than a year, you can use a $500 deposit instead of a personal pledge. Net 15 (WEX Fleet Card), Net 26, and rotating terms are available (WEX Flex Card). Apply online at wexinc.com
National Funding
With national aid, you can obtain equipment finance for commercial truck leasing and financing. Loans in the amount of $150,000 are eligible. Six months of TIB is needed, as well as a vendor quote for equipment and a personal credit score of at least 575. Apply online at www.nationalfunding.com/industries/loans/trucking-business. Leasing is another choice for auto repair financing. Six months of TIB is needed, as well as a vendor quote for equipment and a personal credit score of at least 620. Apply online at nationalfunding.com/industries/leasing-financing/automotive-repair-equipment.
Credit Line Hybrid
If you have decent personal credit, a hybrid credit line might be the ideal option for you. If your company is new, you will receive up to $150,000 in funding. To be eligible, your personal credit score must be greater than 685. Liens, convictions, bankruptcies, or late fees are not permitted. You should have had five or fewer credit requests in the last six months, and you should have less than a 45 percent balance on both business and personal credit cards. It is preferable if you have developed both business and personal credit. For more information, visit creditsuite.com/business-loans.