Being listed with the business credit bureaus is the first step to building your company’s business credit file. Once you’re listed you should focus your attention on getting positive payment experiences added to your file that will generate history and favorable business credit scores. For example, Dun & Bradstreet requires a minimum of four companies reporting your payment experience to generate a Paydex score.
Building this credit history can seem arduous because you have to ensure that the suppliers, vendors, and lenders you have an already existing payment experience with will now start reporting to your newly established business credit files.
To increase the challenge, you’re not given any way to confirm which company is reporting to your file because the business credit bureaus do not disclose what business is supplying the payment data. The credit report only lists generic account types such as line of credit, commercial card, computers, office supply, and so on.
Plus you have to worry about new vendors and suppliers reporting. One of the biggest mistakes made by small business owners is assuming that every vendor reports its payment history to the business credit bureaus. Out of the 500,000 vendors who extend credit to business owners like you, less than 6,000 will never report to the business credit bureaus.
Last but not least: What if the specific vendor or supplier your business has a good history of payment experience with is not set up to supply payment data to the business credit bureaus? One of my new clients who had been in business for more than 15 years recently got listed with Dun & Bradstreet and contacted one of his suppliers to let it know of his new DUNS number. He was excited because he had a 10-year solid track record of payment experience with the supplier and knew that this could benefit his newly established business credit file. Unfortunately for my client, this supplier was not a trade reporter with D&B; needless to say, my client was not happy.
Fortunately for you and my client there is a way to solve all these challenges while building your business credit file in record time.
One of the largest business credit bureaus, Dun & Bradstreet offers a unique program that’s ideal for new businesses that need to quickly establish their credit ratings and develop payment histories. With this program you have the ability to submit your company’s trade references so that D&B can contact them to collect payment experiences and report them to your file.
This allows you the opportunity to add your company’s good trade references to your D&B business credit file without requiring your references to be trade reporters with D&B. Best of all, you can establish a Paydex score in a matter of weeks depending on how many references you supply to D&B to contact.
One very important thing to keep in mind is you cannot submit credit cards, gas, or utilities as trade references to D&B. Business credit cards that do report to the business credit bureaus will submit their payment data to either Corporate Experian or Small Business Equifax.
Here is a quick overview of the services offered by D&B.
This service is ideal for your business if you need to establish a credit rating and develop a payment history fast. You get a DUNS Number immediately and your company’s basic credit file will be established within one business day. You can submit up to six trade references in the course of 30 days that D&B will then contact to collect and verify payment experiences.
D&B will send you a comprehensive report on your credit file once your payment experiences are added. What I like best is you know firsthand what references are added to your file. If it cannot verify a trade reference you still have the opportunity to submit additional references online until you reach six references within 30 days.
This service is almost identical to the CreditBuilder Plus, but the major difference is in the time frame and amount of trade references your business can submit. With this service you can submit an unlimited amount of trade references for a period of six months.
This is ideal for you if you have an extensive amount of trade references to submit. It’s also beneficial for you if you plan to establish new vendor, supplier, or other business relationships for your company in the near future. As soon as you begin doing business with a new supplier, you simply submit the trade reference to D&B for reporting. For more information on this service, contact D&B services at 800-999-3867 extension 6316.
This is how you can build a business credit file in record time and benefit from doing what you’ve always done as a business owner. The only difference is now you have a business credit report that shows how responsible your business is in handling its financial responsibilities. This can make the process of obtaining credit and business financing for your company much easier.