If you’re looking to establish and build your business credit without relying on your personal credit or Social Security number, this blog post is for you. We’ll walk you through a step-by-step strategy that leverages net 30 accounts, along with valuable tools and services like Divi and Nav, to help you jumpstart your business credit journey.
Join our Private Facebook Group: By joining our private Facebook group, you’ll gain access to valuable information and connect with other members who are on the same path to building business credit. Our group has a strong community of approximately 2500 to 3000 followers. Joining the group provides additional benefits and resources for your business credit journey.
Discover Divi – Your Business Credit Solution: Divi offers a tier one business credit strategy called Divi Credit Builder, which functions similarly to a secured credit card. With Divi, you can preload your own funds onto the card and enjoy the benefits of a credit card that earns rewards. This is an excellent way to establish credit for your business. Divi also provides unsecured options for those who need to establish credit.
Utilize Nav for Business Credit Monitoring: Nav is a reputable business credit monitoring service that offers alerts and reports to major credit reporting agencies, including Dunn’s, Experian, and Equifax Business. By paying the monitoring service fee with Nav, you can add a trade line to your credit report, helping establish and build your business credit.
Building Credit with Divi and Nav: To actively build credit, it’s important to utilize the services of both Divi and Nav. Divi reports to DUNS and Small Business Financial Exchange, while Nav reports to three different bureaus. By using your Divi card, you can pay for purchases from recommended vendors, such as Crown Office Supplies and Uline, establishing trade lines with them.
Understanding Net 30 Accounts: Net 30 accounts are a form of credit that allows you 30 days to pay for your purchases. It’s a beneficial credit arrangement where you receive the items before making payment. To showcase creditworthiness and improve your paydex score, aim to pay off net 30 accounts within 15 days.
Paying Yearly Fees for Business Credit: To access business credit, some companies, like Crown Office Supply and Strategic Network Solutions, charge a yearly fee for their services. These fees are essential for building a solid business profile and obtaining the credit necessary for your business. Investing around a thousand dollars is a reasonable starting point to build a strong foundation.
Establish Credit with Recommended Vendors: To establish business credit, it’s recommended to make purchases from reputable vendors for at least 90 days. Start with vendors like Quill, which offers a quick and easy setup. Additionally, make one or two purchases from Uline within the 90-day period to demonstrate activity on your business credit. Monitor your business credit using Nav for verification and to ensure you’re on the right track.
Maintaining a Good Credit Score: Maintaining a good credit score is crucial for your financial success. Pay your bills on time consistently, aiming for a high Paydex score or better. Keep in mind that Equifax and Experian have different credit score ranges. An 80 Paydex score is the minimum, with 100 being the maximum. Think of a 100 Paydex score as equivalent to an 850 personal credit score.
Building business credit is a strategic process that requires utilizing tools and services like Divi and Nav, along with establishing trade lines with recommended vendors. By following the steps outlined in this blog post, you’ll be well on your way to jumpstarting your business credit journey and opening up opportunities for future credit endeavors. For more detailed information on achieving an 850 personal credit score, be sure to check out our video. Don’t forget to like, subscribe, and share the content to help others on their business credit journey
