How to Establish b2b Business Credit Account

Hi! Do you own or operate a business? Are you tired of using your corporate business credit card for a loan on every purchase? If you have a good credit record you should be able to set up credit accounts directly with some or all of your suppliers. Read on to learn How to Establish b2b Business Credit Account

Difficulty: Easy

Instructions

1. First, do a self assessment. What suppliers do you have the best business or personal relationship with?

2. Then contact these suppliers and tell them you are trying to establish business to business credit accounts with as many suppliers as possible and that you would like to use them as a reference.

3. Be sure that they'll give you a good credit reference. Try to establish at least three references this way.

4. Next create a Credit Information form. Follow these steps..

5. On an 8.5 x 11" sheet of paper, put your company logo at the top. Get this professionally done if you aren't handy with word software.

6. Put "Credit Information" at the top of the page as title of this document.

7. Below that, on the credit information form, put "Corporate Address" and enter your corporate address

8. Below that type "Business:" and briefly describe your business. (ie "Leading Supplier of Specialty Materials".... etc. If your business has been around a long time you may want to add "Since 1980" or whenever you started.

9. Next line type "Federal Tax ID:" and enter your tax ID

10. Below that, if you've established one, enter your Dun & Bradstreet number. Look into setting one up if you don't know what this is. Other businesses will use this to determine your financial well being (ie are you being sued, are you still in business, did you have a fire, etc)

11. Below that, type "Website:" and enter your web address if applicable

12. Below that enter "Bank Reference:" Then enter the information for the banks you've set up your business account, loans etc. Enter bank's name, address, phone number, fax number for credit inquiry and a/c #

13. Then, beneath that, enter "Business and Trade References:" Then enter those three businesses you determined above. Enter their name, address, phone and fax number. Other businesses establishing credit accounts with you will call them for references to be sure you are paying the bills / invoices on time.

14. Once you've created this credit information form, send this to reputable suppliers that you wish to establish credit with.

15. Be sure to contact their sales department first and let them know the form is coming. Let it be known that you are a serious customer and that you want to set up credit account with their business.

16. Ask they for at least 30 day pay terms meaning, you don't have to pay them for one month after you receive goods.

17. If you are new at this, I assure you, even with a good credit information form and loan record, they won't give you 30 day payment / credit terms right away. They may ask for a few orders first on their own terms, such as CIA ( cash in advance ) or maybe 10 day terms.

18. Work with them on this and establish yourself as a great paying customer. Get your foot in the door, and negotiate better terms at a later date. If you pay your invoices / bills on time, businesses will work with you down the road.

19. Thanks for reading my How To Establish b2b Business Credit Account