We are fast approaching the fiscal cliff and there is great concern about the impact it will have on our economy. Business owners worry about loss in cash flow and the ability to purchase needed supplies. Establishing a line of credit with vendors is one way to ensure the business will have the supplies it needs.
Unfortunately, vendors are feeling the stress of the economy as well and small business owners may find it more difficult to be approved for credit. This is especially true for newer businesses that have not had the opportunity to develop a good credit rating. If you are looking to establish credit with vendors, here are some tips:
- Start Small: It takes time to build trusting relationships. Do not ask for too much too soon. Prove your credit worthy by creating a pattern of timely payments.
- Share Documentation: Vendors will want to see objective proof that you are credit worthy. Have documents available for the vendor to review. Ask other business owners that you have relationships with for a letter of recommendation.
- Get Personal: Before looking for credit to be extended, take time to review your personal credit reports and ensure their accuracy. Have corrections made if needed.
In place of, or in addition to, credit directly with vendors, National Business Capital may be able to help you open a business line of credit. Our approval process is faster and easier than at traditional banks. Speak with one of our business consultants to learn more!