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Unlock Business Credit – Even With Little or No Credit
Having a good credit score is very important for any business to grow. But if you are just starting out and don’t have a credit history, it can be hard to achieve a good credit score and build capital for your business.
Putting your money in Tier One and Two accounts won’t help you obtain credit either. These accounts are not reported properly to the three main credit bureaus and won’t help you build a credit history.
So how do you obtain credit for your business if you have little to no credit? Let’s find out!
Why You Shouldn’t Cycle Your Money With Tier 1 Accounts?
A Tier 1 account is a type of account that has a balance but does not report to the three main credit bureaus. This means that any money put into these accounts is essentially wasted and will not help you build your credit score.
Additionally, when businesses cycle their money between Tier 1 accounts to increase their business credit score, they are doing more harm than good.
By constantly shifting funds between different accounts, they are leaving a track of “credit ping” on their report which can decrease their overall credit score.
Additionally, there is no point in having high balances in Tier 1 accounts as it only going to hurt your credit score in the long run.
So you will just waste your time and energy by doing this – it’s better to find alternative ways to build your business credit score.
What are The Best Alternatives to Tier 1 Accounts?
There are a few different ways of building business credit without relying on Tier 1 accounts. Firstly, you should focus on getting a good payment history – the more payments you make on time and in full, the better your credit score will become.
You can use services such as Quill, Summa Office Supplies, Crown Office Supplies, Uline, Grainger, etc… to purchase items in bulk and then pay them off each month. You basically buy the item when you have the funds and then make payments until it’s paid off.
Doing this will help you build a good payment history which will eventually translate into better business credit scores. The best part about these services is that you don’t need any collateral or credit history to get started.
The reason why these services are better than Tier 1 accounts is that they submit information to the three primary credit bureaus. This means that your payment history will be monitored and recorded, ultimately improving and building your positive credit score.
In Tier 1 accounts, your money will just sit around and not generate any credit score improvement while these services will not only make your money work for you but also help you build a solid credit profile.
So rather than cycling your money in tier 1 accounts, it is much better to use the services mentioned above to build your business credit. By doing this, you’ll be able to obtain more capital for your business and establish a strong financial identity in the long run.
Best Tools to Build Your Business Credit Fast?
Here are a few tools that can help you build your business credit exponentially and sustainably:
Credit Strong can help businesses build their credit. They offer accounts that report up to $25,000 to major business credit bureaus.
When businesses make payments on time, it helps them get a better credit score and shows lenders they are reliable. This makes it easier for businesses to grow and stay financially stable.
Biz2Credit helps businesses by giving money to do projects and get things they need. Their technology makes it easier to understand how it works.
They also help businesses pay back the money on time, so they can have a good record with lenders and become more successful.
Ecredable helps businesses build credit. It offers different packages for different needs. You can link up to 8 kinds of utility accounts and connect with over 2000 utility companies.
Ecredable will download your account info and up to 24 months of payment history for you.
That way, businesses can choose the best package that meets their needs and pays bills on time so they can improve their credit score and grow their business.
The Red Spectrum helps businesses build credit by offering Net 30 Terms on their products and services, allowing clients to pay invoices within 30 days. Making payments on time helps businesses have a good payment record.
Then The Red Spectrum tells credit bureaus about this record – this can help businesses’ credit scores go up. It also makes lenders trust them more and helps their businesses grow and stay strong financially.
Debieratings makes it easy to tell credit bureaus how you pay your commercial rent. You just make your regular payments and they will be reported.
This helps businesses build their credit score as well as makes it easier for businesses to get money from banks and become more successful.
How We Can Help You?
At Taxcreditcommunity.com we help businesses build credit and accelerate growth by offering comprehensive virtual financial teams. These expert teams provide essential services such as:
- Bookkeeping
- Financial coaching
- Tax professional assistance
- Payroll management
- Personal and business credit specialization
By managing the major financial aspects, we enable businesses to focus on their core operations, make informed decisions, manage finances effectively, and build credit.
We make sure that your business is successful in the long run and that you can reach your goals.
Contact us today to learn more about how we can help you!
