Completing The Applications

Welcome to this module, completing the application. So I know this seems really simple, but the reason why people get denied is by messing up their application. So I want to cover this with you so you can be successful. Okay. So here’s what we’re going to cover. So we want to make sure you’re completing your net 30 applications correctly, getting at least those three trade minimum three trade references at the minimum, I would say three to five, your first four vendors and then the golden rule of building credit. All right. So when we say three trade references, we’re getting those references to report on all three bureaus. Okay. And we want to get at least four vendor trade lines. Now, one of the most common reasons people get denied for credit at any level is not having the information that matches somewhere else.

So for example, let’s just say your Dun and Bradstreet says 1100 Peachtree street, Northeast suite 200. And I want you to look at the notice that the small little detail of suite 200 and on your application, it says 1100 peach tree. The application that you complete says 1100 Peachtree street, suite Ste 200. They want to approve your account unless all this information matches up exactly at the time. So to get your business registered, pull up your USPS, USPS approved address and use that for your business location and always use that. So essentially, it’s the details you want to make sure that when you’re completing this, everything lines up, and also if you can’t find a vendor’s credit guidelines online, you don’t want to guess, or anything like that, that you’ll be approved. So what you can do is get a copy of the application that you’re requesting information from, call the customer service, and then explain that, Hey, look, I have a newly incorporated company, whether it’s an LLC or company, and then what you want to do is just ask the main question.

Hey look, do you have net 30 accounts and more than likely they all, cause the ones that we’re going to recommend are going to do that. Do you already have, do you accept businesses that aren’t established, they don’t have established Paydex scores and do they report to all three bureaus? Now this is assuming you choose not to follow the vendors that we recommend. Okay. But it’s also a good point of reference and they’ll, they’ll tell you because that’s how they want to do business with people. And then the other thing is you want to get three trade references. All right. So you’ll find that most business credit applications require two or three trade references. So the first thing you’ll need to do is obtain three trade references. Okay. A trade reference is a name and a contact particulars of one or more businesses with a firm that does business with them, used as a means of verifying the credit worthiness of the firm. Okay. So if your company is just starting out, ask some friends, if they can cite, if you can cite friends or people that you know that are in business, if you can cite them as a trait reference on your particular credit applications initially. So this is just to get you started. Then once you’ll get at least 4 net 30 vendor accounts, you will list them on the future application. So once you have the applications completed and they’re reporting, you can use the ones that you established, but for now you can start off why just maybe getting some friends and family and just having that conversation with them. Okay. Now, what I want you to do too, is apply for at least three to five, three to five minutes saying four, because it’s in a minute, but three to five, ideally five vendors.

And then when you find the vendor/supplier that meets your criteria listed above, make sure you do an application, do not apply for credit from a lender that does not report to all three bureaus, ideally, or that one that requires you to co-sign the application with your social security number. Now your company is building its own credit file. So especially with these tier one accounts do not do it. It is not required. Now there may be some that’s going to report to two of the three. And if that’s the case, it’s fine, just bite it in the bullet and then let’s move forward from there. Okay. And then there’s a supply that we’re particularly, you know, when to use your specific business needs. Basically if there’s a supply that’s going to suit your business needs more efficiently than the other ones. And go with that one, right?

Because again, like I’m saying some of these things you may or may not need now there’s additional vendors on the application that you want to essentially use, feel free to, but three tradelines is the minimum. Four is best and five is this ideal. And you want to get these accounts reporting to all three bureaus, just to be clear, Dun and Bradstreet Experian, and then potentially Equifax. Again, Equifax is like one of those things. So as long as they’re reporting, in my opinion to Equifax, I mean, Experian and Dun & Bradstreet are good to go, all right. But the more vendor accounts you have, the more products and services you’ll need to buy to keep them active and reporting. So you want to make sure that you keep that into account because you want to make sure when you’re establishing these accounts, you’re establishing them.

You’re not just buying something once you’re buying it for at least two to three months. So that way you can have that reporting history. Okay. And the golden rule, just to be clear, is pay your bills on time. That is the rule of business credit. Do not miss a payment. You cannot dispute this stuff like you can on personal credit. All right, this is not the same. This is not protected under the fair credit reporting act. Okay. So what we want to do is show on time payment history. So unlike personal credit, you don’t want to just pay on time. You want to pay early. Okay? So this is completely the application. I’ll see you in the next module and let’s take immediate action.