# Building Business Credit for LLC



## TeddyRocky (Mar 23, 2007)

What are some ways you guys build business credit for an LLC? 

The business credits I have are business credit cards. We purchase approx. $60,000 worth of t-shirt blanks from B&R every year, thinking about applying for NET30 to build some more credit. Is this a good way of building credit?


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## Eyerish (Mar 20, 2007)

TeddyRocky said:


> What are some ways you guys build business credit for an LLC?
> 
> The business credits I have are business credit cards. We purchase approx. $60,000 worth of t-shirt blanks from B&R every year, thinking about applying for NET30 to build some more credit. Is this a good way of building credit?


Do you have a dun & bradstreet number? That is the key way to build business credit...get your dun & bradstreet number and make sure you have positive trade lines....in time, you will be able to get credit lines from many suppliers and larger limit credit cards. A lot of it has to do with aging...once your company is over 3 years old you will be in good shape with almost everyone.


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## AngelStorm (Sep 19, 2008)

Eyerish,

Is this the best way to get your business finances out of you personal name?


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## fdsales (Jul 1, 2007)

Yes, you need to have as much credit histroy listed in your company name as possible. Some suppliers will offer net 30 with a credit card backup. Also, borrow a small amount from your local bank, and make SURE you pay it back ON TIME. Then you get to use the bank as a credit reference. Even if you don't need the funds right now, just put them into a savings account, and pay the loan from the savings..the idea is to create a favorable credit histroy, just make sure the loan is listed in your company name.


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## tops4500 (Aug 31, 2008)

Eyerish said:


> Do you have a dun & bradstreet number? That is the key way to build business credit...get your dun & bradstreet number and make sure you have positive trade lines....in time, you will be able to get credit lines from many suppliers and larger limit credit cards. A lot of it has to do with aging...once your company is over 3 years old you will be in good shape with almost everyone.


I agree, the key to building business credit is having a Duns number from there you can work on your paydex score. Good Luck!


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## Eyerish (Mar 20, 2007)

AngelStorm said:


> Eyerish,
> 
> Is this the best way to get your business finances out of you personal name?


It will only be out of your personal name if you formed your company as such. 

If you are a sole proprietorship...with a simple tax id number...All of the credit references, debt, and liability...will be 100% in your name...regardless of the dun and bradstreet credit scores. You can register a sole proprietorship and get a duns number, but you still have all of the personal liability for your company dealings. 

The only way to make sure you are not personally liable for the business dealings of your company..most notably...your credit score...is to form your company as an LLC or a corporation which will protect your personal assets in case of a bankruptcy, lawsuit, bad payment history, etc. 

With that said, many creditors will still require a personal guarantee regardless of your company structure unless you have impeccable credit history and a long amount of business aging. 

You can start building business credit immediately through companies like uline, viking, and some of the office supply stores....and if your personal credit history is good...you can get tons of credit if you do a personal guarantee on the credit lines.

I think 3 years in business and a high paydex score (80+) is usually the magic number for many of the good credit lines to come to fruition.


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## neto45 (Nov 25, 2010)

in line with this information, ism looking to do net30 with a wholesaler, but they ask for a guarantor information. My credit is not the greatest, so should i put someone else as the guarantor or myself?


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## wwhitman (Aug 26, 2012)

I am in the credit reporting business, so I am very familiar with this subject.

First of all, where the Bureaus (Equifax, Experian and Transunion) build a credit file on you individually without your intervention, it is up to you to establish business credit. A Dunn and Bradstreet number is one way to start, as is an Experian Business ID. You must submit trades you do business with to the Bureau (D&B or Experian) and have them track your credit history under your business name.

This assumes you are doing business as an entity and not an individual. I would get 30 day credit to start, and then do as much as you can to establish credit with other creditors. And keep up on your payments.


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## binki (Jul 16, 2006)

Rather than pick up a 5 year old thread you might want to start a new one. 

Just ask your vendors for a credit app. Some will want you to guarantee, others will not ask. It is a crap shoot but once you get that first one the others will follow. It helps if you have a few years of paying COD or CC with them and also if you have some volume. Once that happens you can take that to the next vendor and offer them a chance to win your business.

Forget DnB. They will want money from you. Don't give it to them. Unless you are asking for tens of thousands in credit line, you don't need them. Ask for $2K and be done with it. You will be surprised at what you get.


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