As an entrepreneurship consultant, I work with many ambitious small business owners who get turned down for those critical startup loans or lines of credit due to poor personal or business credit scores. Thankfully, adding seasoned "tradelines" to your credit file can give your score an invaluable boost to help secure financing. Here‘s my expert guide to purchasing authorized user tradelines strategically to meet your business goals.
Why Business Credit Scores Matter
Your personal and business credit scores play a huge role in whether lenders approve funding requests. In fact, a recent Federal Reserve study found over 50% of small business loan applications get rejected due to low owner credit scores. As a consultant, I guide clients on maximizing both sides of their credit profiles. Using authorized user tradelines is one powerful, legitimate way we can strengthen your business credit foundation.
Choosing Ideal Tradelines for Your Goals
For entrepreneurs, prioritizing tradeline age and demonstrating years of robust payment history is even more vital than simply boosting your credit limit. My clients with new businesses need to establish longevity first. We strategically select seasoned 10+ year old tradelines to convey financial stability.
Here are the tradeline features I recommend my clients target specifically for improving business credit:
|Boosts length of credit history
|Helps usage ratios for larger loans
|Top national names
|Recognition and trust with lenders
Paying close attention to these areas when selecting which tradeline products to purchase has maximized approval outcomes for my consulting clients time and time again.
When Are Tradeline Packages Ideal?
While a single properly aged tradeline product can work wonders, I often advise my newer business clients to invest in bulk "package" deals with multiple tradelines.
Adding 3-5 solid payment history lines early on can help in situations like:
- Rapidly building robust business credit profiles from scratch
- Overcoming past personal credit issues lingering on reports
- Meeting urgent financing deadlines for an startup capital
- Increasing total tradelines to improve credit factor diversity
In particular, having a greater volume of tradelines posting across all major business credit bureaus improves your chances of meeting minimum score thresholds lenders look for.
Take These Steps Before Buying Tradelines
My top tips for prep work before purchasing tradelines:
- Review your business credit reports from Experian Business and Dun & Bradstreet
- Check for correct legal business names, addresses on all reports
- Compare reports and resolve discrepancies in business information
- Analyze which factors need the biggest boost (history length, etc)
Properly prepping your business credit files ensures new tradelines integrate seamlessly. I guide my consulting clients through every step of the process from purchasing to posting for maximum credit improvement success.
How to Find a Reputable Tradeline Company
In advising over 500 entrepreneurs on strategically using tradelines over the past 10 years, I‘ve developed an acute eye for signs of an ethical, reliable tradeline supplier. I recommend looking for:
- Tradeline expertise over general credit repair
- Custom consulting services
- 5+ years specifically selling tradelines
- Evidence of senior tradeline expert staff
I also prioritize establishing an ongoing advisor-client relationship so I can monitor tradeline effectiveness and adjust our credit building strategy as needed. With the right tradeline products and guidance, entrepreneurs can transform credit health virtually overnight!