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Business success is correlated to strong cash flow and strong cash flow is correlated to strong business credit. With strong credit, your business improves its ability to fund both business start-up and growth expenses over time.

One approach for building a higher credit score is to establish a line of credit with vendors whereby you purchase their goods and services against the amount of credit established. As you maintain payments, the line of credit amount may be increased, which is reported to Business Credit Bureaus resulting in increasing your credit score.

A line of credit (also called a credit line or credit limit) is the maximum amount of money that a lender will loan to an individual or business without requiring additional approval. The lender determines how much the line of credit will be based largely on the individual's credit worthiness and income potential.

For small business owners, a line of credit from a vendor can be a useful tool for supporting purchases over time AND for increasing your overall credit score.

For example, with a $5,000 line of credit in place, a business can purchase $1,500 in January, $2,500 in September and $1,000 in December, or only purchase $100 once and never use the remaining credit line.

Still, by having the credit line established and by maintaining payments, the business is building its credit score and improving its position for higher credit line and other forms of financing.

Keeping yourself and your employees up to date and up to speed on industry issues and related job skills is something that you're likely to invest in on an ongoing basis in order to remain competitive and profitable.

By establishing a business relationship with a vendor who...

• Offers eProducts that include business management and related industry information, AND
• Facilitates purchases through an established line of credit

...Your business may benefit in the following ways:

1. By supporting a trained and skilled workforce through eProduct purchases
2. By building a credit history
3. By increasing your credit score
4. By advancing your options for securing other forms of financing

Establishing business credit through a vendor relationship where eProduct purchases are made against an established line of credit involves the following general process:

1. Complete online credit application (EIN and 411 phone # required, DUNS # preferred) and select:
1. Amount of eProduct purchases desired
2. Corresponding Line of Credit amount desired to be used specifically for eProduct purchases
3. Related monthly payment plan
2. Purchase one eProduct via credit card (do not download product until credit application decision is received)
3. Receive an email confirmation detailing receipt of your specific application request
4. Await finance committee review process and notification if and how much business credit you may qualify for
5. Respond by choosing:
1. Accept the Line of Credit and
1. Implement standard or accelerated payback schedule
2. If the awarded business credit is lower than requested, you may
1. Enroll in a six (6) month working relationship whereby business credit amounts may be increased over time relative to your maintaining payment requirements
2. Accept the decision and receive a refund of any purchases made and not yet downloaded that exceed the requirements of the credit line awarded
3. Decline offer and request a refund of your initial purchase, less a credit reporting and processing fee, providing that you have not yet downloaded your purchase

Below are 10 great reasons for building your credit score using a line of credit in a vendor relationship.

1. Purchase eBooks on topics that build business knowledge and skills
2. Manage purchases and credit amounts over time
3. Establish a credit history for your business
4. Demonstrate reliable payment practices
5. Make minimum payments
6. Choose accelerated payments
7. Support favorable monthly payment reporting to Business Credit Bureaus
8. Increase your credit score
9. Improve your options to secure other sources of financing
10. Manage your credit. Don't let it manage you.

To learn more, visit Build Your Business Credit

"Building Small Business Credit is an Edutorial published by the Knowledge Institute, recognized leaders in small business development and education by the US SBA and others. The Institute's entrepreneurial resource portals serve millions of individuals in all 50 United States and internationally by helping them to learn about and connect with resources to start, grow and succeed in business."