What is a Business Tradeline and How Does it Work?
When you’ve got a great business idea, there’s a good chance you’ll need to work with a lender in order to fund your venture. When potential lenders examine your business and personal credit, it can come between you and your dreams of business success. That’s where business tradelines can come in handy with helping you establish your company’s credit so you can get small business loans.
At The GrowWise Group, we specialize in helping growing companies build a strong foundation through small business funding and tradelines. In this blog entry, we’ll talk about tradelines for your small business and how they can help you get your company off the ground.
What is a Business Tradeline?
A business tradeline is a step on the road to building business credit and getting the funding you need to kick off a great future. When you don’t have enough established business credit, a business tradeline can get you started in the right direction. Put simply, a business trade line is a line of credit from a vendor in exchange for services or goods.
A business owner typically has tradelines with several vendors. A typical arrangement allows the business to receive the product or service and pay for it either one to three months down the road. This gives the company access to something they need while helping them demonstrate their creditworthiness so lenders will want to work with them.
Establishing a Tradeline
Unlike a line of credit that allows a business to purchase products based on credit through a bank, a tradeline is an arrangement that’s established between a vendor and a business. Every business has a list of goods and services that they need to run their business.
For example, your payroll company may require a large order of paper to run your office. With a tradeline, you’ll get the office supplies you need now and pay the office supply vendor 30 days after receiving them. After you’ve made money from your first month of payroll, you’ll be able to pay the office supply for your purchase. This, in turn, helps to establish credit for your business.
How Trade Lines are Used
Among small businesses that use credit, the majority of them take advantage of vendor tradelines. Many types of businesses rely on tradelines for their daily operations, but some use tradelines more than others. Companies that work in construction contracting are an example of a business model that tends to make frequent use of tradelines. The main benefit of using tradelines to establish credit is that it doesn’t take long to build credit since loans are based on a short-term basis and paid off every month.
Access to Tradelines
Unfortunately, credit is one of those things that can be difficult to acquire if you haven’t already got it. If you don’t have the business credit to establish a tradeline, you can establish one with help from a financial advisor like the Growwise Group that provides access to tradelines.
We offer our clients assistance gaining access to tradelines so they can help establish their credit or clear up credit problems. Once you’ve established your credit, you’ll have the credit you need to get the type of funding that helps your business succeed.
Business in a Box
In addition to providing access to tradelines, our team of financial advisors at the Growwise Group offers a complete program for helping you get your small business off the ground. This process-oriented approach to starting a business begins with financial advice and provides business owners with a complete range of services to help start their business.
Your road to business success begins with your business application. We’ll evaluate your business needs and schedule an appointment to discuss them and create a customized business plan for your company. During our consultation, we’ll discuss your financial needs, long-term goals, and credit issues.
We’ll also help you with the following areas of concern:
● Articles of organization for your business
● Certificate of good standing
● Establishing an LLC or incorporation
● Tax ID
● Corporate domain name, website, and email access
● Company logo
● 411 listing
● Google and Manta listing
● Virtual office including commercial address, phone, and fax
● Establishment of business tradelines
● Office equipment and supplies
Get Your Small Business Tradelines Today
If the only thing stopping you from establishing your small business is access to business credit and vendor lines, let our experts at The GrowWise Group help get you started.
From startup funding to vendor lines, we help connect small business owners with the right tools to get started right.
Our financial consultation experts can help you move your big idea from concept to profit. Complete your online funding application or call us at 877-244-9809 to find out how we can help your business become a reality. You can also contact us online to learn more about our financial consulting services.