Requirements:

Tier 1

Tier 2

Tier 3

Tier 4

Personal Credit Check

Rare

Rare

Frequent

Occasional

Personal Guarantee

Rare

Rare

Frequent

Occasional

Business Credit Check

Occasional

Frequent

Frequent

Frequent

Reports to Business Credit Bureaus

Occasional

Occasional

Occasional

Rare

Reports to Personal Credit Bureaus

Rare

Rare

Rare

Rare

Trade References

Occasional

Frequent

Frequent

Frequent

Ease of Obtaining Business Credit

Easy

Moderate

Challenging

Challenging

If Customer Defaults on Payment

Reports to Business Bureaus

Reports to Business Bureaus

Reports to Personal & Business Bureaus

NA

Types of Vendors

Businesses granting credit.  Willing to take a risk on a new business.

Businesses granting credit. Typically, larger credit lines.

Banks offering smaller loans, leases and unsecured lines of credit and Alternative Financing

Venture Capitalists, Investors, Private Money