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Steps to Build Business Credit in 2024

Apr 10, 2025

Building Business Credit in 2024

Hosted by Kelvin

  • Focus on Financial Wellness, Mindset, Therapy, and Real Estate
  • Video sequel to a previous viral video on building business credit
  • Aims to help establish business credit to qualify for funding including microloans, high limit corporate credit cards, etc., within 3-6 months

Key Concepts

  • Business Credit vs. Corporate Credit
    • Corporate credit: Line of credit for the business entity (EIN only, no personal guarantee)
    • Business credit: Line of credit or funding extended to an individual on behalf of a business
    • No PG (No Personal Guarantee): No personal credit check; business held responsible

Preliminary Steps

  • Ensure business qualifies for credit (refer to Kelvin's previous video on having a legitimate, credible business)
  • Establish a legitimate business presence on paper

First Round of Establishing Business Credit

  • Net 30 Accounts: Start with at least three Net 30 accounts that report to Dun & Bradstreet, Experian, and Equifax
    • Net 30: 30 days to pay invoice in full; pay early to improve credit rating

Recommended Net 30 Vendors

  1. Nav Prime

    • Business credit monitoring service
    • Costs $49.99/month ($10 more for SBSS score)
    • Reports to credit agencies and provides financial insights

  2. ULINE and Quill

    • Supply vendors for business needs
    • Offers Net 30 payment terms; reports to credit agencies

  3. eCredable Business Lift

    • Converts business expenses into reported credit trade lines
    • Monthly subscription; reports to several credit bureaus

Tier 1 Revolving Accounts

  • Nav Prime Card

    • Corporate charge card linked to business checking account
    • No credit check or security deposit

  • Bank of America Secure Business Credit Card

    • Requires a minimum $1,000 deposit
    • Reports to SBFE, which shares data with major bureaus

  • Bill Spend and Expense Card

    • Previously Divvy card; reports to Experian
    • No hidden fees; draft from business checking account weekly

  • Sam's Club MasterCard

    • No personal guarantee; reports to Dun & Bradstreet, Equifax
    • Offers cashback rewards

  • Home Depot Pro Card & Supply Works

    • Used for frequent business expenses at Home Depot
    • Net 60 account with discounts

  • Wex Brand Fleet Network

    • Fuel card network; helps build business credit
    • Non co-branded cards recommended
    • "Exit application strategy" to avoid personal guarantee

Moving Forward

  • Aim for three vendors reporting to major agencies with consistent, timely payments
  • Progress to Tier 2 or Tier 3 credit

Conclusion

  • Consider joining Green Scale Academy for advanced strategies in raising business capital
  • Encourage sharing and engagement on the video for broader reach
  • Emphasize importance of foundational accounts and proper business structuring

Note: Links and detailed steps are provided within the video for precise application processes.

Full transcript