Business Credit Roadmap

Objective: Build a robust business credit profile to access $250,000 in unsecured working capital (“Signature Credit”) without putting personal assets at risk. Timeline: 6-12 Months Philosophy: The business is a separate entity. Treat it like one.

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Phase 1: The “Compliance” Foundation (Weeks 1-2)

Critical Rule: If you fail here, you will be flagged as “High Risk” and rejected later. Do not skip.

1. Entity Structure: Must be a Corporation (S-Corp/C-Corp) or LLC. Sole Proprietorships do not build separate business credit.
2. EIN: The “SSN” for your business. (Free from IRS).
3. Physical Address:
   • Do: Commercial office or Virtual Office (e.g., Opus, Regus - check if address is blacklisted).
   • Don’t: P.O. Box or UPS Store. Home address is okay but looks less “pro” to lenders.
4. Business Phone:
   • Must be a dedicated local or toll-free number (e.g., RingCentral, Grasshopper).
   • Action: List it with 411 Directory (ListYourself.net).
5. Digital Presence:
   • Professional Website (aminagames.com).
   • Professional Email (steve@aminagames.com). No Gmail/Yahoo.
6. Business Bank Account:
   • Open with a major bank (Chase/BoA) or strong fintech (Mercury/Relay).
   • Action: Deposit seed money ($1,000+).

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Phase 2: Building the File (Months 1-3)

Goal: Generate a Paydex Score of 80+ (Dun & Bradstreet).

1. Get Your Numbers:
   • Dun & Bradstreet (D&B): Apply for a D-U-N-S number (Free). Do not pay for their “Credit Builder” package.
   • Experian Business & Equifax Business: These profiles open automatically when you start reporting trade lines.
2. Tier 1 Trade Lines (Net-30 Vendors):
   • These vendors give you credit immediately and report to bureaus.
   • Strategy: Buy small supplies you need (cleaning, office). Pay the invoice 10 days early.
   • Vendors:
     • Uline (Shipping supplies).
     • Quill (Office supplies).
     • Grainger (Industrial supplies).
     • Summa Office Supplies.
   • Target: You need 3-5 reporting trade lines to generate a score.

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Phase 3: Revolving Credit (Months 3-6)

Goal: Get “Store Credit” cards that don’t check personal credit (No PG) or have soft pulls.

1. Monitor Your Score: Use Nav.com (Free/Paid) to watch your business credit scores rise.
2. Tier 2 Accounts (Store Cards):
   • Once you have a Paydex 80, apply for store cards using EIN only.
   • Vendors:
     • Amazon Net 55 (Synchrony).
     • Sam’s Club / Costco Business.
     • Staples Business.
   • Strategy: Use these for actual business expenses (tech, monitors). Pay in full.

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Phase 4: Cash Credit & Strategic Stacking (Months 6-12)

Goal: Unsecured Business Credit Cards and Lines of Credit ($50k - $250k).

Note: At this stage, many banks will require a Personal Guarantee (PG) for the first card, but it reports to Business Bureaus only (protecting your personal utilization).

1. The “Big Banks” (Tier 3):
   • Chase Ink Business: High limits, generous points. (Hard Pull on personal, reports to Business).
   • Amex Business Gold/Platinum: Charge cards (No preset limit). High approval odds if revenue is flowing.
   • Divvy / BILL: Corporate card that scales with cash flow.
2. Fleet Cards (If creating a physical presence):
   • WEX or Fuelman (Gas cards). Very easy approvals.

The $250k “Stacking” Strategy

To hit a quarter million, you don’t get one loan. You stack multiple lines.

• Bank A (Chase): $50,000 Credit Card.
• Bank B (Amex): $50,000 Charge Card.
• Bank C (BoA): $30,000 Business Line of Credit (BLOC).
• Fintech A (Brex/Ramp): $50,000 limit (based on cash in bank).
• SBA Loan (7a): If you possess strong revenue/tax returns later ($100k+).

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Important Rules for “Signature Only”

1. Frequency Matters: Use the cards. Even for a $5 coffee. Inactivity closes accounts.
2. Utilization: Business credit utilization doesn’t hurt your score as much as personal, but keep it managed to show responsibility.
3. No Late Payments: A single late payment on a business account acts like a bankruptcy for your Paydex score. It drops from 80 to 20 overnight.
4. Revenue is King: For the big “Signature Loans” (true unsecured cash lines), lenders want to see business bank statements showing consistent deposits (Revenue), not just credit score.

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Action Checklist

• Week 1: Incorporate + EIN + Website + 411 List.
• Week 2: Open Bank Account + Apply for D-U-N-S.
• Week 3: Order $50 of supplies from Uline & Quill (Invoice Net 30).
• Month 1: Pay Uline/Quill invoices immediately upon receipt.
• Month 3: Check Nav.com for Paydex 80 Score.
• Month 4: Apply for Amazon Business or Staples Corp cards.
• Month 6: Apply for Chase Ink or Amex Business.