Business & Personal Credit Education Program
Understanding Money
Financial literacy — the ability to understand how money works in your life — is considered the secret to taking control of your finances. Knowledge is power, as the saying goes, but information alone doesn’t lead to transformation.
The first thing to consider on your business and personal credit education journey is your true financial knowledge and savings habits. Understanding how money works, how money works for you, and how to manage money are the 3 key ingredients to a healthy business and personal credit report.
Behavioral scientist Wendy De La Rosa, a member of TEDx explains in this quick video 2 simple steps to get you started with healthy saving habits.
Building Business Credit in 2022
Here are a few quick ways to build your business credit using Net 30 vendors. Start by applying and opening NET 30 vendor accounts. Make sure to sign up for at least 5 vendors, that are reporting to the credit agencies, then you will be able to apply for the their 2 accounts.
- Remember to always ask your vendor, how much you will need to spend in order for them to report to the credit bureau.
Here are the agencies that handle your business credit scores.
- Dun & Bradstreet
- Equifax
- Experian
- Make sure to apply with your EIN number
Make sure your business is legit and in good standing. The basic items needed to legitimize your business are;
- Establish a business number (listed) and virtual business address (in case you move, or do not have a physical building)
- Create your website and business social media pages
- Apply for your EIN ( irs.gov )
- Apply for your LLC
- Apply for a business checking account (be sure to add your EIN number to your business account)
For a list of Tier 1 accounts and Tier 2 accounts click here.
Why Do You Need Credit Education?
- It helps you to get the things you need now
- Able to obtain lower interest rates and fees for new loans and lines of credit
- Gives the ability to effectively budget for costs, higher savings rates for retirement, and make prudent investment choices that will help the individual reach your financial goals
- Ability to avoid unnecessary debt
A lot of consumer debt is due to a lack of money knowledge, unhealthy money relationships and spending habits, and a lack of commitment to changing your habits. Emotional spending is the number 1 culprit in female entrepreneurs worldwide. Don't think you fall into this category? Try the homework lesson below and see.
Home Work
Spend a week jotting down the emotions you occur, associated with different financial situations as they happen. Document how you feel when you’re shopping online, out with a friend for drinks, opening bills, or getting your paycheck. At the end of the week, go through your notes and see what patterns emerge. This will tell you a little something about your relationship with money.
Before We Begin..
Please fill out the form below to help guide your personalized business education and coaching session.
Understanding Credit Reports
This free online course by credit.org will help you understand how your credit score is calculated, what your credit report says about you, and what you can do to ensure that your credit report is accurate and reflects positively on you.
How to Use Your Credit
If you have bad credit or need to establish credit, I'm sure you honestly know where you stand, —so now what? Managing your credit responsibly helps build a solid foundation for your financial future. This FREE personal financial class may be just for you!
Bank Local or Not?
Complacency and banking should not coexist. It seems that these days big banks are eliminating more services than they’re providing and prioritizing their own bottom line above the best interests of the consumers. This puts us at a serious disadvantage in the pursuit of our short- and long-term financial goals. Consider the advantages and disadvantages of out-of-town banking.
What Net 30 Vendors Can Do For Your Business Credit
If you’re not familiar with net 30 vendors, here is a quick breakdown; Net 30 vendors are simply merchants that will allow you to buy products and services now and pay later via business tradelines. Typically you repay the loan 30 - 90 days later. In the business credit-building world, this is very crucial when establishing your credit. Look for companies that will provide your payment history to the business credit bureaus. Here is a list to start you on your way.
Quill
Here’s how it works. Similar to many companies, Quill, offers paper supply products and 30-day net payment terms. Quill offers two forms to pay for their products 1.) Pay By Credit Card (Traditional Payment Method)
2.) Invoice My Account (30-Day Net Terms). You’ll choose option 2 – invoice my account.
BP Gas
BP Gas / BP Business Solutions Fuel Card Plus (See article on Gas Cards) https://www.bpbusinesssolutions.com/ (630) 836-5000 14 Day Net Terms Reports to Dun and Bradstreet (DNB)? Yes, When do they Report? Randomly
Supply Works
Supplyworks is a common net 30 account and is now associated with home depot (home depot pro institutional).
Lowe's Net 30
Lowe’s. Lowe’s NET 30 accounts are called Lowe’s Business Account Receivable. It can be used only at Lowe’s and you have to pay the balance in full each month. It is easier to get than their regular Business Credit Card because of this. And is a good starter account to get.
Advance Auto
Advance Auto Parts https://advanceautoparts.com Apply for Business Account in person, at your nearest store
Importance of a Good Business Credit Score
Business credit scores may be used by lenders, suppliers, and underwriters to help make decisions about working with your business, so knowing where you stand can be important.
Business credit and personal credit are two different things. A good personal credit score can help you qualify for greater personal financial responsibility, such as a mortgage. Business credit scores may help do the same thing for your company but reflect only the financial health of the business.
A business credit score is not the only factor considered by lenders, but knowing how your business may appear to others can empower you to take the next step to improve its financial health.
Dun & Bradstreet, offers free business credit score monitoring, in hope of providing consumers with greater visibility of their credit scores at no cost, and providing the ability to manage their complete financial journey. This allows business owners to build credit and manage their businesses more effectively.