02/10/2024
BUSINESS CREDIT TRADELINES
There are two types of credit tradelines for a company, a financial tradeline and a vendor tradeline.
* Financial Tradelines: A financial tradeline is an extension of credit from a bank or financing company, for example a business loan from a bank, commercial credit card, or equipment lease financing.
* Vendor Tradelines: Vendor tradelines can have a variety of names, such as merchant, supplier, vendor, trade credit, vendor account, or even a corporate tradeline. Regardless of the name, a vendor tradeline is a report from a merchant or supplier to a business credit bureau about a specific companyโs payment history when the supplier or merchant has extended them credit.
An example of this would be an office supply company extending net-30 terms to a customer to pay an invoice for a delivery of office supplies.
Which type of tradeline is more important? Well, it may depend on your objective. If your goal is to get net-30 terms with a supplier, they will typically look at your payment history on similar types of vendor tradelines. If your goal is to get a loan or credit card for your company, a financial tradeline is likely going to be more important to the lender. This is why some business may need to do a PG, if not enough history of a Financial tradeline.
follow us on both FB & IG for more tips
If youโre ready to start building your business credit my DIY ebook is available ๐๐๐ฝ
https://buy.stripe.com/7sI8zN1GZaAD7FCfZ7