Building business credit is a necessity.

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Business Credit

Building business credit is similar to building personal credit, but it’s actually a completely separate system. Just as individuals have personal credit scores that are meant to represent their creditworthiness, businesses have business credit scores to represent the company’s creditworthiness.

Good Credit Matters

Good business credit shows that your business has been reliable in paying creditors, which indicates that it is a good candidate to loan money to or do business with. Virtually all businesses will likely want to have the option of using credit at some point.

Build Your Score

As with personal credit scores, business credit scores are determined using a variety of data regarding a company’s financial and credit history and are a reflection of a company’s creditworthiness. Your tradeline history can have a large effect on your overall score.

Bridge To Growth

Business tradelines help bridge the funding gap by providing products and services that can, in theory, generate enough revenue to cover the bill that’s due down the road.

The Importance

Business tradelines allow companies to receive goods and/or services from a vendor in advance of a payment due date the vendor chooses. An advantage of business tradelines is that it allows companies–especially startups–to build relationships with vendors and suppliers.

Funding + Funding

Business tradelines essentially get your business approved for more funding. Of course, it isn’t required, but it’s a great way for newer businesses to get ahead of the competition.

Start-up business tradelines are more valuable than you think.

Business tradelines can be important because they can help other businesses and organizations determine your company’s creditworthiness. Your business credit reports may have overviews of your company’s history of paying its bills and trade credit accounts. They also often have details about the business, such as how old it is, the industry, whether there are outstanding liens or judgments, and information about the owners. Someone may review your business’s credit reports when you apply for a loan, line of credit, lease, insurance, or trade credit. Or, when you try to get a contract with a major corporation or government agency. Many business credit reports also come with business credit scores or creditworthiness ratings, and your tradelines can directly impact these.

Fill out the form below and we can discuss more if a Business Tradeline is right for you and your business.

Overview Coming Soon!

The best part about business tradelines is these will get you perfect business credit to qualify for much more funding! You can get added to someone’s good standing high limit credit account and you will acquire their credit history (think of it as piggybacking off their credit) – their payment history and limits will report to you. This will lower your utilization (by increasing available credit), and add credit age and good payment history to your credit. The primary account holder is NOT affected at all by adding you.

For example, you get added to a 7-year-old perfect standing $30k limit line as an authorized user – that will add that perfect payment history, age, and high limit to your report.

This is a great way to quickly beef up your credit profile. 70% of lenders are still taking tradelines into account when determining approvals.

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Frequently Asked Questions

A business tradeline is a financial or trade credit account that appears on a company’s  credit report. Establishing tradelines and paying bills on time (or early) is an important part of building your business’s credit.

We handle basically everything for you. Here are some things to consider before applying for a business tradeline:

  1. Establish a legal entity. In order for any business to establish trade terms with your company, take the steps to establish the business as a legal entity (ie; forming an LLC, or S Corporation), sole proprietors should make sure the business is registered with your Secretary of State.
  2. Establish separate bank accounts. Separate bank accounts will help keep finances separate and help your business track accounts payables.
  3. Business email and contact information. Your vendor will look for signs of credibility when assessing whether or not your business is legitimate. Having a business email address in the name of the company helps in that effort. Avoid using free email services like Yahoo or Gmail.
  4. Establishing a presence for your business on social media such as Facebook, Twitter, Instagram, LinkedIn or YouTube, depending where your customers spend time online.

Tradelines can help your business develop the credibility that matters to banks and other capital lenders. A business credit report that includes multiple, positive lines of trade credit in your company’s name shows that your business pays its creditors in a timely manner.

Commercial Lenders review this business credit history of tradelines to determine whether to fund a loan or capital, as well as the interest rates and repayment terms if capital is extended. Businesses with good trade credit often qualify for loans with lower interest rates and better payment terms than those with poor or limited trade credit history.

Let’s Get Started.

By agreeing and entering your full name as a binding electronic signature, you understand that an electronic signature has the same legal effect and can be enforced in the same way as a written signature. Furthermore, you consent to receive communication via the communication sources provided in this form. Additionally, for services that require such, you are providing ‘written instructions’ to Impruvu LLC under the Fair Credit Reporting Act, authorizing Impruvu LLC and approved partners to obtain information from your personal credit profile or other information from Experian or any other credit bureaus necessary (only applies to services that require credit information such as Funding Services). Any initial credit check will be a soft pull with no impact to your credit profile. You authorize Impruvu LLC and approved partners to obtain such information solely for credit evaluation to pre-qualify for our services. All provided information shall be kept private and will not be shared with any entity outside of Impruvu LLC and approved partners. Any future payments made to Impruvu LLC for services are non-refundable and will require a client agreement before services are rendered, but clients can use the client portal to manage any subscriptions and payment methods as needed.

Interested in partnering with Impruvu?

We’ve partnered with many businesses and individuals to get their clients’ funded. Reach out if you would like to learn more about how we can build and optimize your business.