What is our “Small Business Helper” Program?
We are a small business, and have been through many of the startup troubles that your business, has experienced, or will experience in the future. Aside from offering discounts, what more could a company like ours do to help your business get a leg up on the competition? Actually, something huge!
We can offer net terms, and report your on-time payments to business credit reporting agencies.
Yep, a small business like ours can help you build business credit!
Ok, so what’s the catch?
There always has to be a catch right? Not really, in this case there really is no catch. When you request to have your account converted to Wholesale-terms, a percentage of your purchase is allowed to be paid over the next three months. We still ship your order right away. And the crazy part, we won’t get mad, or report negatively to the bureaus if you choose not to pay.
How does that work?
So there is no question about hidden payment gnomes (like a garden gnomes….just with payments and hidden of course). The basics are as follows: Whether your account is set up as a “Wholesale” account or as a “Wholesale-Terms” account you pay the same amount today for the products purchased, but with “Wholesale-Terms” a 15% service fee is added to the total and spread out over 3 monthly payments. If you make the payments on-time, we report positively. If you choose not to pay any or all of those additional payments one of two outcomes occur.
- If you decide not to pay any of the payments or we do not recieve payment by the first payment due date, we simply do not report anything. As well,we void the payments from your account with us, leaving you with a $0.00 ballance due to us.
- If after making one or two payments, you decide to stop making payments at anytime, or the next payment date passes without us receiving a payment, our next report to the bureaus will show that your account has been closed and paid in full for the total amount of your initial purchase, and the payments you have made.
So lets see some examples:
Standard Wholesale Acct (Items total $200.00)
Wholesale-Terms Acct. (Items total 200.00)
|Service Fee (15%)
|Total Due at time of Order
In the above example, from the “Wholesale-Terms Acct.” table, we ship your order right away and the remaining balance would be split into payments due over the next three months. So. $6 per month.
What figures do you submit to the bureaus?
Good question. Credit utilization is very important for establishing a good credit profile. A credit profile showing that you have a high percentage of credit available for use is desirable. In simplest terms if your max available credit for an account is $100, keeping your balance at or below $20 ( 20% credit utilization) on that account is most beneficial to your credit profile. That being said, using the previous example, after your first payment of $6.00, we would report that your max available credit is $152.00 and your balance owed on that account is $12.00 resulting in 7.89% credit utilization.
What would you report to the bureaus if I stopped making payments after making the first payment?
Again, great question. (I know we’re asking the questions, but you’re reading them, so we’ll just pretend you did the asking..) Any submission regarding account status to credit reporting agencies, needs to include a status field. If you have made your payments on time, we report that you are active and current. If you were to stop paying, we would simply report that the account was closed and was paid as agreed for the total amount paid.
What do you report once I have made all payments on time?
Closed, Paid as agreed.
How can I get more than 3 months of reporting?
Place another order.
How does placing multiple orders within a 3 month period benefit me?
As long as you are making your payments on time, we will combine all of your prior order totals, and balances for the prior 3 months together. As an example based on the previous numbers. If you placed a second order (lets say the order was for the exact same items at the same price and payment schedule) within 3 months of your first order, and made your first payment, we would report your max credit limit as $304.00 and your balance due as $30.00 ($12.00 or 2 $6.00 payments due from your first order plus $18.00 or 3 $6.00 remaining payments due on the second order). We will always report the total of your past 3 months orders that you have made payments on time for.
Which bureaus do you report to?
we report to the following business reporting agencies:
- Credit Safe – https://www.creditsafe.com/
Touting usage by over 100,000 companies worldwide, by clients such as Viacom, BMW, Volvo, Panasonic, and more…. Having a strong credit profile here might help you finance that new BMW delivery truck you have been really hoping for.
- Ansonia – https://ansoniacreditdata.com/
Ansonia is an Equifax company specifically tailored to accept credit reporting from small buisinesses like ours. But make no mistake, they use the data that they collect in their flagship products. Their mission statement is:
“We collect data from all types of businesses — from Mom & Pop all the way to Fortune 500. Our state-of-the-art platform enables us to accept data files that other business credit companies cannot.”
What information is required to sign up?
You must submit your business contact information, and EIN number. We do not perform a credit check, however, we will verfiy that your submitted business information matches your registered EIN information.
Will you sell my data?
Absolutely not. We will share your payment information, as described above, with the credit reporting agencies listed above. We receive no compensation for providing this data to those agencies.