4 Steps to Build Your First Business Credit Report

While every business owner has a personal credit report, not every business has a business credit report. A personal credit report is created the moment an individual with a Social Security number accepts his first job or applies for his first form of financing. However, a business credit report is not automatically created and there are a variety of steps that must be followed in order to establish this very important business financing tool. Here are the preliminary steps you must take to build business credit:

Properly Establish Your Entity

Operating as a sole proprietor would make it very difficult to establish and build a quality business credit profile. So the first thing that you want to do is plan to incorporate your business as either a C-Corp, S-Corp, or Limited Liability Company (LLC).

This will also involve obtaining an Employer Identification Number (EIN), opening a dedicated bank account for the business, setting up the business telephone line, setting up the business website, setting up the business location, and making sure to have a clear separation of personal and business affairs. Other aspects associated with properly establishing your entity include having proper levels of insurance, developing a quality business plan, and making sure your legal advisers are in place.

Register the Entity With the Major Business Credit Bureaus

To make sure your payment history from vendors, suppliers, and creditors that report to business credit bureaus is recorded, you have to make sure to set up a business entity profile with the two major business credit bureaus. This will include both Experian Business and Dun & Bradstreet (D&B). With D&B you will receive a D-U-N-S number and a D&B PAYDEX Score; with Experian you will receive an Intelliscore Plus. Both are measured mainly using a scale of 1–100, with a score over 80 considered the best tier. It’s best that once you establish your profile, that you also set up some sort of credit monitoring; that way you can verify each month that everything is being reported properly and efficiently.

Begin Building the Business Credit Profile

This process could be a bit difficult, as not every creditor reports their information to business credit bureaus. So your research here would be to find those creditors that, in fact, would report your on-time payment information, so you could build your report history.

Shared Secured Loans and Secured Credit Cards

These can be provided by your local credit union. With both, you will deposit money into a bank account and then with the shared secured loan, you will take out a loan on the money deposited, using the deposit balance as security. As you pay back the loan, that amount of the secured balance becomes “available.” This product is great because it’s reported to the business credit bureaus as a regular loan from the credit union. The same would work with the secured credit cards, where you establish a line of credit using money from your deposit account, with the reporting showing up as a regular credit card on the business credit report from the credit union. A business would find that using one of these products would prove to be much easier to establish a business credit history than using one of the various companies below.

Various Companies

These can include companies such as Grainger, Uline, Quill, OnDeck, and a variety of other companies that would report the on-time payments to the bureaus.

Continue Building Your Business Credit Profile

After a solid six to 12 months of using the above beginning basics of building, you could now try to apply to the variety of business credit card companies to add additional trade lines. In addition, seek to reach out to various vendors, suppliers, and consultants for your business as many times they will offer trade credit, which could also be reported on your business credit report for building aspects. Note that as you go forward, you want to make sure to continue making all payments on time and never miss a payment. It’s also best to make payments much earlier than scheduled.

After a solid 12 to 24 months of utilizing the above strategies, your options for business lines of credit, leasing, term loans, asset-based lending, lower APR business credit cards, more attractive trade credit structuring, etc., open up as your business maintains its well-structured business credit report.

As one of the leading supply chain platform in China, egtcp.com offers a variety of credit report of Chinese and overseas companies. It’s a good step to take before marching into the big market in China.

Credit Inquiry into Chinese Company

Know Your Trading Partner’s Credit Status Anytime& Anywhere

√ No trial orders, time saved.

√ Detailed data, quick and convenient with one-click.

√ Field investigation, know your factory conditions easily.

√ Quality control, avoid trade risks effectively.

Popular services in global trade:

financial support-$100,000, buy now, pay later

credit inquiry-know your partner's credit status to avoid trade risk

factory inspection/loading monitor/trade assurance

Follow us:

You can also contact eGTCP.com directly via mail (service@egtcp.com) or phone (+86 400-159-8448).

                                                             

No. 1 Choice to Credit Inquiry for Your Business in China

Today credit is an important role

Now set up the credit consciousness is really crucial, especially to the people who do global business.

As a consumer, how to improve the credit score is still the problem we most concern. Paying your bills on time, spending money responsibly-these are important financial habits that can increase your credit score. Whether you’ve struggled in the past with money or had a few financial fumbles, building and maintaining your credit score is vital to being approved for loans and the best credit cards.

image from  internet

The best way to get better with your money and improve your credit score is to follow the financial habits of successful people. Here are habits that can help you get a good credit score.

l  They regularly check their credit score and credit report.

l  They have a system in place to pay bills on time.

l  They maintain a budget and track expenses.

l  They minimize use of available credit.

l  They protect themselves from identity theft.

    

Enjoy your business trip with our credit inquiry service

But as a consumer, we usually worry about credit problems of suppliers or sellers. If you do global business, you will pay more attention to this problem.

A lack of trust to your Chinese suppliers?

Don't know how to query the Chinese supplier's credit score?

Now Great Tao provides you credit inquiry service which is an important partner in your global business and fly your business safer! Let you no longer worry about supplier's credit problem. The point is, this credit inquiry service is free of charge, Great Tao cooperates with authoritative third-party institutions -Sinosure.

Sinosure offers coverage against political risks, commercial and credit risks. This includes short-, medium- and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business. Investment guarantees cover political risks such as currency and remittance restrictions, expropriation and nationalization, sovereign breaches of contract and war.

If you want to apply this service, what you should do is just fill in your company name, company address, your email and telephone, and our professional team will contact you as soon as possible. Please Click here.

If you are urgent need this service, please email us at service@egtcp.com.

Focus on:

We, eGTCP, welcome you to applying for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started!

Follow us:

  

                                                            

This Credit Score Survey Opens Your Business in 2017

Credit plays a very important role in global trade. More and more people do global trade business more concerned about the others credit in his life. Maybe many people will use the third-party software to survey others or take many methods to survey others.

image from internet

In the era of the credit, have you ever wonder why your online application for credit can be approved in 60 seconds? Or get pre-qualified auto loan for a car without asking you how much is your income? Or why your interest rates on loans are different from the interest rates of your friends or neighbors?

Your credit score is the factor that affect all the above. It is your responsibility to main a good credit score. You will need to use it to get you a best available rate when come to apply for credit.

    

What is Credit Score?

Most of time credit score is refer as FICO score (Fair Isaac Corporation), it is a number based on the information in your credit file that shows how likely you are to pay a loan back on time, the higher your score, the less risky you are. You credit score is derived from three major credit bureaus: Exprian, Equifax and TransUnion. These 3 major credit bureaus will compile your credit report based on the information provided by the companies that gave your credit in the past. Based on the information such as your payment history, the length of your credit history and the type of credit you have and the amounts owed, the credit bureaus will generate your credit report. And based on your credit report, a number or scores will be assigned to you; this number will be range from 300 to 850. This magic number is your credit score, the higher the number the better you are.

When Your Credit Score Count?

Your credit score will play an important part when comes to applying loans or other credits, it may save you a significant of interest if you have good credit score. When you apply for mortgage, car loan, business loan or credit card, the lender or credit company will assess how risky you are as a potential borrower, the higher your score, the less risk you pose to the lender and the more likely you will get a better interest rate for application.

You will be offered at a relatively low rate if your credit score is above 700 and if your credit score is above 760, you will get the best available rates because you are the lowest risk borrower at this high of credit score. You loan will be approved with high loan rates if your credit score is below 600, and if your credit score is really bad, you may be not able to borrow at all.

Maintain High Credit Score

Now you know how important your credit score is and when it becomes important and you can use it as a tool to save cash. Hence, it is important for you to maintain your credit score at high level. Things that you can do to increase your credit score include: 

Pay your bills on time

Keep balances low on credit cards

Don't open a number of new credit cards that you don't need

Have credit cards - but manage them responsibly

Credit score is not just a number, it is a tool that you can control and use to save cash. It will become important whenever you need credits and it is an important factor to be considered by any financial organization before they approve your credit application. Hence, keep your credit score always high.

Have you ever dealt with global trade? Have you ever concerned about the others business credit score? Now, I want you answer a questionnaire survey—credit investigation in global trade. Through this we can know more usefully what you need in global trade. Click here

Focus on:

We, eGTCP, welcome you to applying for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started!

Follow us:

  

                                                            

Here's The Reason Why Your Credit Score Matters

The Christmas holidays have just ended some days ago, everyone is starting to struggle into the busy work. After experiencing Black Friday, Cyber Monday and the Christmas holidays, we enjoyed the process of consumption, but most of our credit cards are almost maxed. It needs to be reminded that, in the near future, you need to repay your credit cards.

image from internet

If you unable to repay or miss the final repayment date, the record of you can’t repaid the money will be recorded in your personal credit. If these kinds of things happen frequently，it will affect you a lot of things in the future, such as loans, credit cards, insurance and so on. If you have a credit card, then your credit limit may not be able to continue to improve. In future, you will need a mortgage, a car loan, once they need to verify your credit report, but your credit score is not good, then you may not be able to reach the application you want, or can’t borrow the limit you need.

Credit is so important to the individual, so for the company?

    

The answer is obvious, enterprises' credit for their own growth is more important. Corporate credit refers to the willingness and ability of an enterprise to fulfill its own commitments. For an enterprise, we do not know whether they will implement in the future. But whether it has capacity to implement, we can know from the credit status; whether it has the implementation willingness, we can search the history of corporate implementation records. Therefore, the basic carrier of credit is the history records of corporate commitment to fulfill. To be specific, corporate credit involves the credit behavior between enterprises and enterprises, enterprises and banks, enterprises and governments, enterprises and consumers, and internal workers. No matter how time and market environment changes, corporate credit is eternal as the mainstay of the status, and only enterprises with good credit, can become more and more competitive in the market.

image from internet

Credit status and the history trade of buyers and suppliers are not easy to get. Government agencies generally do not issue other credit reports to individuals or enterprises.

So the problem is, for general global buyers, how they can get the professional credit report of the suppliers? For general suppliers, how they can get the professional credit report of the buyers?

Please wait for the next blog. 

Focus on:

We, eGTCP, welcome you to applying for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started!

Follow us: