The Fastest Tradelines for Businesses | Nav (2024)

Let’s face it. When it comes to our small businesses, we want to get results, fast. It’s no different if you’re building credit for your business: you want to find the easiest and most efficient way possible.

Good business credit can help unlock more business opportunities and financing options, better interest rates, higher credit limits, and more.

Fortunately there is a way to shortcut the business credit building process, and that’s to get tradelines that help you build business credit in a relatively short period of time.

Here, we’ll explain how tradelines work, and how they can help build business credit scores fast.

What Are Business Tradelines?

The term “tradelines” is an industry term for “account.” Business tradelines refer to business accounts that appear on business credit reports, and can help build business credit when paid on time.

Any account that reports to commercial credit credit reporting agencies can be considered a tradeline, including these popular types of accounts:

  • Net-30 vendors
  • Business credit cards
  • Business charge cards
  • Small business loans
    • Business lines of credit
    • Equipment financing
    • Commercial auto loans
  • Credit builder loans
  • Alternative tradelines

Tradelines are often described as a great way to build your business credit file, and they absolutely can be.

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Do Tradelines Really Work?

Here’s how tradelines work: you get an account that will be reported to at least one credit bureau, pay it on time, and establish credit through that positive payment history.

These accounts, if paid on time, provide a valuable credit reference that can help your business build good credit scores.

Most credit scoring models take payment history into account when calculating credit scores. If no accounts appear on your business credit, the scoring model won’t be able to calculate a credit score, or the score that is produced will likely be low.

Proactively building credit through tradelines can help you build your credit scores fast, though exactly how fast depends on a lot of different factors.

Another advantage of business tradelines is that they don’t always require the small business owner to take out a loan or go into debt. In addition, some companies offering tradelines don’t check personal credit or require good FICO scores.

That means you can start to establish business credit while you work on improving your personal credit profile, if that’s one of your challenges.

Let’s look at how to get started.

What Is the Fastest Way To Add Tradelines to My Credit Report?

The fastest way to add tradelines to your credit report is to establish accounts with companies that report payments to business credit bureaus. Here are several types of tradelines you can use:

Net-30 vendors

Some suppliers and vendors allow businesses to buy items and pay for them later. Net-30 accounts refers to accounts where the payment is due 30 days after the invoice date.

When the supplier or vendor reports payment history to business credit bureaus, you can use these accounts to build business credit by paying on time. Suppliers typically do not check personal credit, so these accounts may be available even if you don’t have strong personal credit ratings.

Find a list of easy net-30 vendors here.

Alternative tradelines

One easy way to build credit is through tradelines like Nav Prime. With this type of account, payments are reported to business credit. Nav Prime, for example, offers Detailed Credit Reports, and Nav Prime membership payments are reported as tradelines to all major business credit bureaus.

Business credit cards

Most business credit card issuers report payments to business credit bureaus. That makes a business credit card account a great option for building business credit. As with any type of account, you’ll need to pay on time to get a good credit rating.

Most business credit card issuers require a good or excellent credit. If you have bad credit, or no credit history, you may need to start with a secured credit card.

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Business charge cards

Business charge cards are similar to credit cards, except that the cardholder must pay the balance in full each month. (Some cards require daily or weekly payments.) Some offer more flexible credit requirements, which can be a plus if you don’t have excellent personal credit. Again, if payments are reported to business credit, this type of account can help establish credit for the business.

Small business loans

Banks, credit unions, and other companies that make small business loans may report to business credit. Whether it’s business lines of credit, equipment loans, or commercial vehicle loans, those accounts may help build business credit.

While these accounts can benefit your credit, it’s worth noting that some lenders only report to the Small Business Financial Exchange (SBFE).

Credit builder loans

With credit builder loans, you “borrow” a savings account. You’ll make monthly payments for a period of time, and then unlock the account. The money you save, minus any costs, is yours to keep.

How Much Will My Credit Score Go Up With a Tradeline?

It’s always impossible to predict exactly how much your business credit score will change if you get a new tradeline. However, there is some research to help you understand the potential impact of tradelines on business credit.

Nav customers who used Nav’s Detailed Credit Reports with tradeline reporting saw an increased business credit scores up to 50% in the first 3 months.*

Is Buying Tradelines Legit?

A popular credit repair tactic, purchasing tradelines is one way to build credit quickly. It’s most popular in the world of personal finance. Someone with bad credit will pay an intermediary (a tradeline company) to get added as an authorized user to someone’s account. That account will typically show up on the authorized user’s credit reports and help boost credit scores.

(The free version of this method is to get added to a friend or family member’s credit card as an authorized user.)

With business credit, you don’t have to pay for authorized user tradelines to build credit quickly. Most business accounts don’t offer authorized users. Plus, you can use the tools suggested in this article to build business credit yourself.

What Are Seasoned Tradelines?

Seasoned tradelines refer to accounts with an established payment history. An account that has been established for several years is considered “seasoned.”

This is one reason some business owners look at buying “shelf corporations” with established credit histories. However, it’s not that difficult to build business credit from scratch, so don’t feel pressured to spend extra money this way.

How Much Will a Tradeline Boost My Credit Score?

Again, your credit reports will include different details than someone else’s so predicting how quickly you can build credit is difficult. But here’s an additional data point to consider:

The majority of customers that use Nav tradeline reporting at least 6 months continue to see positive business credit score changes**

While there’s no guarantee in terms of how fast tradelines will help you build business credit, you definitely won’t build strong credit unless you have accounts reported on your credit reports. All credit scoring models analyze payment history. It’s not uncommon for businesses to have low credit scores simply because they don’t have accounts that appear on their commercial credit reports.

Whether it’s personal credit or business credit, the key to good credit is to have accounts that report, pay them on time and keep balances low.

How Many Tradelines Do I Need?

There’s no set number of tradelines you need to build credit, but for most small business owners, having at least 2-3 accounts listed will be helpful.

It’s a good idea to monitor your business credit so you can track your progress.

*Based on aggregate data tracking Experian® Intelliscore Plus business credit scores after three months of having Nav tradeline reporting. Results will vary. Scores are calculated from many variables; some users may not see improved scores.

**Based upon the aggregate percentage of Nav customers with positive score changes, nearly 70% of customers continue to see positive business credit score changes across business credit bureaus by keeping their Nav tradeline at least a year.

This article was originally written on February 29, 2024.

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The Fastest Tradelines for Businesses | Nav (2024)

FAQs

What is the fastest way to build business credit? ›

If you want to build business credit quickly here are five simple steps.
  1. Step 1 – Choose the Right Business Structure. ...
  2. Step 2 – Obtain a Federal Tax ID Number (EIN) ...
  3. Step 3 – Open a Business Bank Account. ...
  4. Step 4 – Establish Credit with Vendors/Suppliers Who Report. ...
  5. Step 5 – Monitor Your Business Credit Reports.
Dec 5, 2019

How many tradelines do I need for Dun and Bradstreet? ›

The PAYDEX score produced by Dun & Bradstreet, for example, requires two tradelines with at least three “credit experiences” to calculate a score. A credit experience is when credit is extended and paid off.

How many tradelines do I need to build business credit? ›

Establishing business credit does require you get accounts that report to your business credit history, and pay them on time. Ideally, you will want to get at least 2—3 tradelines that report, use them to keep them active, then pay on time.

What is the easiest credit card to get for a new business? ›

NerdWallet's editorial picks: Easiest business credit cards to get
  • Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card. ...
  • First National Bank Business Edition® Secured Mastercard® Credit Card. ...
  • Hello Alice Small Business Secured Mastercard® ...
  • Valley Bank Visa® Secured Business Credit Card.
Sep 9, 2024

How does an LLC build credit? ›

If your on-time payments are reported to business credit bureaus, you'll start building good business credit. Find easy net-30 vendors that report here. It's a good idea to have two or three net-30 accounts that you pay on time. Credit limits may be small to start, but that's fine.

How long does it take to build LLC credit? ›

It can take three or more years to build a strong credit history for your business. However, there are steps you can take to start immediately, and you may qualify for some business credit opportunities after just one year.

How to get a PAYDEX score fast? ›

How to Get an 80 PAYDEX Score
  1. Look for Creditors That Report to Dun & Bradstreet. ...
  2. Open New Tradelines or Credit Accounts. ...
  3. Make On-Time or Early Payments. ...
  4. Keep Your Credit Utilization Low. ...
  5. Don't Mix Personal and Business Credit. ...
  6. Dispute Any Inaccurate Information. ...
  7. Tips for New Businesses.
Jul 29, 2024

What is the highest Dun & Bradstreet credit score? ›

Dun & Bradstreet assigns scores on a scale of 1 to 100, with 100 being the best possible PAYDEX Score. Scores are divided into three Risk Categories, with 0 to 49 indicating a high risk of late payment, 50 to 79 indicating a moderate risk, and 80 to 100 indicating a low risk.

Can you buy tradelines for business credit? ›

Buying business tradelines can rapidly improve a company's credit score. By adding seasoned trade credit accounts, a business can demonstrate a positive payment history, which is crucial for boosting its creditworthiness. Better credit scores provide access to higher credit limits and better loan terms.

How many tradelines do I need to get a PAYDEX score? ›

To establish a PAYDEX score, D&B requires a minimum of two tradelines with three or more credit experiences. Tradelines are accounts that your business has with suppliers or vendors, such as utility companies, office supply stores, or other businesses that extend credit to your company.

How to get primary business tradelines? ›

You can get tradelines by opening accounts with companies that report to the business credit bureaus. Credit cards, loans,leases, and lines of credit can add financial tradelines to your credit reports. Trade accounts with vendors or suppliers (such as net-30 accounts) can add vendor tradelines to your reports.

How much line of credit can a new business get? ›

The loan amount you're approved for will probably fall between $5,000 and $500,000. Most lenders — both online and traditional — advertise lending amounts within this range. However, if you need more cash, you may be able to find it.

Which company gives fastest credit card? ›

5 Best Instant Approval Credit Cards (September 2024)
  • OpenSky® Secured Visa® Credit Card.
  • Discover it® Secured Credit Card.
  • Capital One Quicksilver Secured Cash Rewards Credit Card.
  • Capital One Quicksilver Cash Rewards Credit Card.
  • Credit One Bank® Platinum Visa® for Rebuilding Credit.
7 days ago

How can I build my business credit fast for a new business? ›

How do you build business credit fast? Registering your business and applying for a business credit card can help you start building business credit right away. As your business grows, establish trade lines with your suppliers and make sure to borrow from lenders that report payments to business credit bureaus.

What is the minimum credit score to start a business? ›

Minimum credit score by business loan type
Term loanWhile banks and credit unions typically require a score of 670 or above, online lenders may only require a score of 500
SBA loanLenders offering SBA loans require credit scores between 620 and 680
4 more rows
Oct 13, 2023

What is the absolute fastest way to build credit? ›

Pay on time, every time

One of the fastest ways to build good credit is by paying your bills on time. Creditors like to see a solid track record of responsibility. If you miss a payment – even just one – it will stay on your credit report for seven years. Make paying bills on time your priority.

How long does it take to get a small business line of credit? ›

SBA loans can take anywhere from 30 to 90 days to receive funds. On the other hand, short-term working capital loans can get funded within a week at the right bank or as soon as the next day with some online lenders. In general, smaller loans have shorter processing times than larger ones.

What business credit card can I get with a 600 credit score? ›

Yes, you can get a business credit card with a credit score of 500, but you'll be limited to secured cards. The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured Credit Card is one example of a credit card that you can get with a credit score of 500 or 600.

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