Should your hire someone to help build your business credit? Credit-building services aren’t absolutely necessary, but they can be very helpful to stressed-out business owners.
It’s true that building business credit is not rocket science, but it can be a time-consuming process that detracts from successfully running your business. Companies like Platinum Corporate Credit (www.platinumcorporatecredit.com), Build Small Business Credit (www.buildsmallbusinesscredit.com), and Your Biz Credit (www.yourbizcredit.com) offer full-service programs that walk new business owners through every step of the process.
Keep in mind that these services do not come cheap. A typical credit building program can cost upwards of $500.
How effective are these services? Like anything else, customers report both good and bad experiences. Platinum Corporate Credit says that the average client finishes its program in nine months with 15 accounts, $150,000 in business credit, and an “A” credit rating established under their company name.
There are also credit reporting agencies that will monitor your personal credit and notify you of any changes for a monthly fee. These services can be a wise investment because they allow you to fix problems right away, and potentially nip suspicious activity and identity fraud in the bud.
Companies that offer credit monitoring services include Dun & Bradstreet (www.dnb.com), the parent company of all business; Experian (www.experian.com); and CreditReport.com (www.creditreport.com). These services allow you to keep a close eye on changes to your report and review your company’s credit file for completeness and accuracy, which could ultimately impact your ability to obtain credit.
A credit monitoring service could also help you determine who is reporting your payment habits and who is inquiring about your business.
Some monitoring services go a layer deeper and strive to help improve your credit scores and rating. A program from D&B called ScoreBuilder, for instance, gives you before and after snapshots of your company’s credit file. These snapshots give you a clearer understanding of how your business partners are making decisions on your company and how you can use your company’s strengths to negotiate better terms.
Business owners know that time is money. A reputable credit service will build your score, while you spend time growing your business.