I was talking to an friend and long time reader of my blog, Damian, and he was telling me about his experience he had recently with building business credit and I think that all of us can learn from him. He hit a bump in the road and I figured out how to get over it.

Damian’s Company Stats

So I have worked on a company for Damian about 4 years ago but he was working on another company on his own. The company that he is currently building business credit with is now 1 year and 7 months old with an 80 paydex and 6 tradelines and a high trade of $400. The companies that he had accounts with were Uline(net 30), Grainger(net 30), Nebs(net 30), Rapid Forms(net 30), AT&T land line, Sprint Wireless(2 lines but approved for 10), Quill(net 30), Reliable(net 30) and Seton(net 30). At this point he thought he was ready to apply for some revolving vendor accounts so about a month ago he applied to Staples and Office Depot and they both denied him. We know that Staples now requires a 3 year old corporation, but we both were not sure why Office Depot denied him.

A couple weeks past and he did not know what to do. He did not want to go and get any more of those starter net 30 accounts and he did not want to get denied by anymore revolving accounts. He considered purchasing some business credit tradelines but simply could not afford them at the time. With nothing to lose he decided to apply to of the companies that offered revolving accounts but applied for their net 30 accounts. In the last two weeks he was approved for Staples Net 30 for $1000, Office Depot Net 30 for $1000, Pep Boys net 30 for $5000, Amazon net 30 for $6000 and a Tech Depot Net 30 account for $2000. He also asked the rep with Staples and Office Depot if it will be possible to upgrade to the Revolving Accounts in the future and they both said sure. One rep suggested that he can apply in 3 months but if his business credit file get stronger within the next month he can go ahead and apply.

We know that the goal is to get to those revolving accounts, but this just shows you what perseverance and creativity can do. I have no doubt that in the next few months he will have all those accounts on revolving terms as well as some gas card and a few cash cards.

Marc