Afraid that you can’t build your business credit because you have a poor personal credit? Don’t worry, John Bowen is here to help you!

UNDERSTANDING BUSINESS CREDIT

John Bowen is a government janitorial chemicals and supplies provider as well as the Vice-President of Credit360, a financial services firm providing credit restoration and business consulting services. 

“But because I know the process, I was able to set up and establish trade lines with my business and already kind of have a Paydex score and have a score register with Experian within a shorter period of time than it would take most people.”

Because he already understands the process of getting business credit, he was able to directly get a line of credit and a few credit cards. With this, he shares the step-by-step process of getting a business credit. 

1. Create a profile with Duns and Bradstreet.

The first step that you should take is by registering and creating a profile with Duns and Bradstreet.

Make sure that all of your information, from your abbreviations to your Employer Identification Number and business bank data, is the same as the information that you put when you registered your business as an entity. 

This way, it’s easier for them to approve because all of your information is identical. 

“When I say it has to be, that’s just what makes it easier because when you go to the lender and you put down on your application, that’s what they’re searching you buy.”

2. Establish trade lines. 

Afterwards, you need to start doing business with certain companies that report all of your transactions to Duns & Bradstreet. These include Quill, Uline, Crown, Summa Office Supplies, and Grainger. 

Once you then establish anywhere from three to five tradelines with these companies, you can then establish a Paydex score.

Your Paydex score is basically your FICO score. Once you have established that, then you’re going to start establishing profiles with companies that report to not only Duns & Bradstreet but Equifax.

3. Keep your Paydex score building.

Once you’ve established a Paydex score with Duns & Bradstreet, then you can start building trade lines with gas companies and other vendors. This will then help you increase your Paydex score from zero to a hundred. 

Just make sure to pay your bills on time and ask your vendors to supply trade references to Duns & Bradstreet to continue building your Paydex score.  

“As long as you pay your bills on time and you have anywhere from three to five trade lines, you’ll establish a Paydex score. The only thing you can do after that is keep building on that Paydex score and make sure you pay your bills early.”

4. Get different lines of credits.

Lastly, you establish a line of credit from banks. This is especially the end game when it comes to credit because you can use these to build relationships with different manufacturers in dealing with the government marketplace. 

“I learned from Eric that you can start leveraging contracts against them for more money because if you’ve already established a relationship and they know you pay well and you might not have the $100,000-$200,000 limit or whatever big large number you might need, but if you go to them and say, “Hey listen, I just want a contract. Yeah. Can we work together?” “Sure. Yeah. Of course.” Because you’ve already established that relationship.”

RESOURCES

If you want to learn more on how to build a business credit even with a poor personal credit, then be sure to click the resources below. You can also visit the GovCon Giant website or the new GovCon Edu where you learn everything about government contracting!

How to Build BUSINESS CREDIT and your Paydex Score!

https://www.youtube.com/watch?v=HSWGMzkD0Vg&t=4s