Featured Videos
Checklist: Business Credit Fundamentals
You can start building your business credit even before opening your doors for business.
- Establish your business as a separate entity in order to separate your business credit profile from your personal credit profile. This means you want your business to be structured as a corporation (a limited liability company, or LLC, is most common for small businesses).
- Make sure you have a well-written business plan, which includes all of the sections typically found in such a plan along with the necessary financial details. Be prepared to defend everything in your business plan by showing how you came up with your figures and developed your plans. In addition, before progressing any further, you need to make sure that you have all necessary licenses and/or permits to start and run such a business. Your initial goal is to establish a viable business on paper, with all of the details already in place.
- Find out exactly what the requirements are for lenders and for credit bureaus. By doing such a credit assessment, you will know what standards are expected before you start to establish and build a credit profile. It’s always advantageous to know what is required of you before embarking on any such project.
- Start making initial purchases for your business. This is where you will need to invest in your business or have individuals you know who will invest. Then use that money to make purchases from vendors who will:
- Let you establish credit based on your personal credit background
- Report your transactions to the credit bureaus.
- Build or improve your credit profile:
- Pay within the set terms of suppliers.
- Make sure to work with suppliers who are reporting your prompt payments.
- Try to limit the number of inquiries regarding your credit profile.
- Do not overdo it with business credit cards -– have a couple, not a dozen.
- Do not let licenses or registrations lapse -– make sure you are on top of renewals or obtain any new licensing that you are expected to have for your business operations.
- Maintain thorough, up-to-date financial records.
- Be watchful of where your business stands in conjunction to your industry. You want to know if you are spending much more -- or less -- than your competitors. Lenders will certainly be aware of numbers that appear unusual.
- Review your credit profiles from credit bureaus such as Dun & Bradstreet or Experian at least once or twice a year. Make sure they have the most accurate information and that no errors appear on the reports. If you do find errors, you need to contact the appropriate bureau and report the errors immediately. Always have paperwork ready to support your argument.
In addition, make sure to read these articles:
- Important Laws for Small Businesses
- How Much Interest Can a Lender Charge?
- Credit Report Dispute
- Dun & Bradstreet Comm Paper Progs Rated'A-1' by...
- Dun & Bradstreet's Supplier Evaluationproduct now...
- Dun & Bradstreet provides preliminary financial...
- Dun & Bradstreet's Form 10 declared effective;...
- DUN & BRADSTREET SIGNS MAJOR SOFTWARE LICENSE WITH...
- Dun & Bradstreet on schedule with planned...
- At Dun & Bradstreet, Refreshments Now Come...
- Dun & Bradstreet completes spinoffs.
- Dun & Bradstreet and WinStar Telebase...
- Dun & Bradstreet Board Reviews CompanyPerformance;...
- SAS Institute and Dun & Bradstreet...
- Dun & Bradstreet Launches Its First...
Stay on the right side of the law when starting a business. Make sure you're up-to-date on the latest laws and loopholes that may affect ......
I want to borrow money for my business. What is the maximum interest the lender can charge me? The lending industry is regulated as to ......
There are services out there, many of them legit, that offer to dispute credit report errors on your behalf. However, these services can cost anywhere ......
NEW YORK--(BUSINESS WIRE)--July 7, 1998--Standard & Poor's today assigned its 'A-1' commercial paper rating to Dun & Bradstreet Corp.'s (formerly named New Dun & Bradstreet ......
MURRAY HILL, N.J.--(BUSINESS WIRE)--March 17, 1997--Dun & Bradstreet (D&B), the world's largest supplier of business information and receivables management services, announced today that it is ......
WILTON, Conn.--(BUSINESS WIRE)--Jan. 10, 1996--At a Dun & Bradstreet security analyst meeting held this morning, D&B gave initial financial indicators for the three new public ......
NEW YORK--(BUSINESS WIRE)--Oct. 9, 1996--The Dun & Bradstreet Corporation announced today that the Securities and Exchange Commission has declared effective the Form 10 registration statements ......
ISLANDIA, N.Y.--(BUSINESS WIRE)--Dec. 21, 1994--The Dun & Bradstreet Corporation announced today that it has signed a worldwide enterprise software license with Computer Associates. The multi-year ......
WILTON, CONN.--(BUSINESS WIRE)--June 25, 1996--In January, Dun & Bradstreet announced plans to split into three publicly traded companies later this year. Anticipated one-time transaction costs ......
MURRAY HILL, N.J.--(BUSINESS WIRE)--Sept. 21, 1999-- Dun & Bradstreet has a simple solution for updating the world's largest business database: refresh it nearly one million ......
MURRAY HILL, N.J.--(BUSINESS WIRE)--Nov. 1, 1996-- Leaner, better-focused corporation to concentrate on improving three core businesses and developing new products and services The Dun & ......
MURRAY HILL, N.J.--(BUSINESS WIRE)--Oct. 14, 1997-- New Business Information Site Targeted to SOHO Market Dun & Bradstreet (D&B) and WinStar Telebase announced today the launch ......
MURRAY HILL, N.J.--(BUSINESS WIRE)--Sept. 15, 1999-- August Revenues up in Double Digits for Moody's; Flat for D&B Operating Company The Dun & Bradstreet Corporation (NYSE:DNB) ......
CARY, N.C. & MURRAY HILL, N.J.--(BUSINESS WIRE)--April 28, 1999-- Unifying warehouse and decision support data saves purchasing dollars SAS Institute Inc., the market leader in ......
NEW YORK--(BUSINESS WIRE)--Nov. 2, 1999-- eccelerate.com(TM) to Market Global E-Commerce Solutions Dun & Bradstreet (NYSE:DNB), the global leader in providing business information, today unveiled a ......
Print
Email
Digg It
del.icio.usRelated Resources
Business Resources
Sponsored Links
Site Map | Contact Us | FAQs | About Us | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy
Media Kit
Copyright © 1999 - 2009 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.
Get In-Depth Company Information from Hoover's | Buy a D&B Credit Report | What is in Your Company's D&B Credit Report?
Online Business Database | Online Business Information | Sales and Marketing Solutions | Business Mailing Lists | Company Profiles
Online Business Database | Online Business Information | Sales and Marketing Solutions | Business Mailing Lists | Company Profiles
Information and opinions on AllBusiness.com solely represent the thoughts and opinions of the authors and are not endorsed by, or reflect the beliefs of,
AllBusiness.com, its parent company D&B, and its affiliates.
AllBusiness.com, its parent company D&B, and its affiliates.
