3. Business Credit Services
Included with: Silver & Gold R.I.G. membership levels
Service type: Monthly
Use the power of your business to grow itself.
As a business establishes and grows positive credit history, financing with true business lenders becomes more accessible. Rates on business credit cards, loans and lines of credit cards are far better than with personal credit alone, making it easier to manage expenses and grow your business. And more importantly, using business credit separates personal risk from transactions.
How Business Credit Works on the RIG
Establish a Business Credit Profile
The first step in your journey toward building business credit is establishing a separate credit profile for your trucking business. For true sole props, this usually involves registering as an LLC in your state. registering your business and obtaining a federal Employer Identification Number (EIN)/tax id#, (*you maybe be able to keep you old one). After that it is advisable to open a business bank account. Having a distinct credit profile is crucial for securing business loans and lines of credit.
If you have been a sole prop for many years and have been apprehensive of forming an LLC because of the effect to your DOT Authority, we will walk you through why it is not as big a deal as you think it may be.
Start Separating Accounts
One common mistake among small trucking companies is the mingling of personal and business finances. We help you set up separate accounts and lines of credit specifically for your business operations. This not only makes accounting easier but also helps in building your business credit score independently of your personal credit.
Baby Steps
Building business credit doesn’t happen overnight, especially for small trucking companies that may be new to the process. We guide you through the initial steps, such as securing trade credit with suppliers and vendors. By starting small and making timely payments, you can gradually build your credit reputation in a sustainable manner.
BLF is also able to assist with some truckers with getting trade lines quickly by utilizing a service that will add you as a borrower (or authorized user) to their trade accounts. This works sometimes. We’ll let you know if its possible after we become familiar with you as a client.
Dispute Resolution
Just like with personal credit, errors can occur on your business credit reports that can adversely affect your ability to secure loans or lines of credit. If we identify inaccuracies during our review of your business credit profile, we will initiate disputes with the relevant credit bureaus on your behalf. This can involve challenging inaccuracies, outdated information, or other discrepancies to ensure that your business’s creditworthiness is accurately represented.
Updates on Progress
Building a solid business credit profile is a marathon, not a sprint. As we work together to improve your business credit, we will regularly update you on the progress we’ve made. These updates will include actionable insights, milestones reached, and recommendations for future steps to ensure that you’re always in the loop and know exactly where your business stands in terms of credit.
Dunn & Bradstreet
As one of the most recognized business credit bureaus, establishing a profile with Dun & Bradstreet is a significant step. We guide you through the process of applying for a D-U-N-S Number—a unique identifier for your business—and how to manage your profile for optimal creditworthiness. This helps potential lenders and suppliers understand the financial stability of your trucking business.
Experian Intellliscore
Another key player in the business credit landscape is Experian. Their Intelliscore system is a predictive algorithm that helps lenders assess the credit risk of your trucking company. We help you understand the factors that influence your Intelliscore and strategies for improving it, ensuring you are well-positioned to secure financing when needed
Monitor and Make Good Choices
Once you have a business credit profile established we will monitor it for you and make sure you are growing it correctly and effectively.
What it is NOT.
Instant Access to large credit amounts.
Business credit takes time to both establish and build. However, as it builds your access to higher credit limits and better lenders will expand.
Terribly difficult.
Most of the time building business credit is easier than building personal credit. Especially once it is established. As long as you stay up to date with your account(s), your business credit score should only go up.
Entirely up to us.
Just like your personal credit, we need you to be on board with what needs to be done (and not done!) to build your business credit. It’s important that you keep to the plan.
Frequently Asked Questions
Can I get and build business credit if I am a sole prop?
Yes, sole proprietors can build business credit. However, because a sole proprietorship doesn’t separate personal and business finances, the owner’s personal credit history often impacts the ability to obtain business credit. This is the case, at least at first, when you first begin to build business credit.
Do I really need business credit?
YES. A strong business credit score can help you secure better terms on loans or leasing agreements for new trucks and equipment. Business credit also can save you money on insurance/factoring costs. This can reduce your cost of doing business.
I am a sole prop are you going to make me become an LLC?
We can’t make our truckers do anything. But we will strongly urge you to do this. There reasons for forming an LLC vs staying a sole prop are far too numerous to mention them all here, but access to better credit is definitely one of them.
Can I build business credit with bad personal credit?
Yes, but it might be more challenging (you may need to start with secured credit options). The key is to make timely payments and manage your business finances responsibly to gradually improve your business credit score. Also keep in mind- a a R.I.G. member, we will be working on your personal credit as well.
What impact may seasonality have on business credit?
The trucking industry can be seasonal, which may lead to fluctuating income. These changes in revenue could impact your credit utilization ratio, a factor that affects your credit score. It’s essential to manage your credit responsibly during both busy and slow periods.
How long will it take?
While building business credit may require some effort, it is not as daunting as it may seem. By paying bills on time, utilizing a diverse range of credit products and keeping your credit utilization ratio low, you can effectively establish and maintain strong business credit.