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7 Ways to Maximize Your Business Credit Score

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Business Credit Score

 

Let’s suppose for a moment that you’ve taken a few steps necessary to establish business credit for your company.  You got approved for a line of credit with a few suppliers, made purchases, paid your invoices and see the payment experience listed on your business credit report.

After seeing your business credit score you decide to jump into the big leagues and apply for a business credit card without supplying a personal credit check or personal guarantee. 

You’re shocked to find out that your business was declined and you can’t seem to figure out why. You have a favorable paydex score with Dun and Bradstreet so what’s the problem?

Believe me this happens more than you can imagine and because of all the misinformation circulating the internet about what it takes to build a strong business credit score and report many business owners simply throw up their hands and say well at least I gave it a shot. 

First, let me be the one to inform you that in order to qualify for financing other than vendor credit lines you will need to have a strong business credit score and report with all three major business credit bureaus.

Not one, not two but all three!

In addition to getting listed with all three major bureaus you also need to build a strong profile and score.

7 Ways to Maximize Your Business Credit Score

  1. Pay Better Than On Time – Paying your invoices 10, 15 or even 20 days ahead of the due date can classify your business as one that pays ‘better than terms’. This looks extremely favorable on your credit files and can increase your scores.
  2. Minimize Debt to Credit Limit Ratios – Keep your debt to credit limit ratios at no more than 30%. This helps reduce your company’s overall debt exposure. You don’t ever want your company to be perceived as overextended.
  3. Establish Payment History – Making a onetime purchase with a supplier hardly establishes your company’s creditworthiness. You should make purchases using your credit on a regular basis in order to build a solid payment track record. The longer the payment history the stronger the file you will have.
  4. Add Trade References – If you have suppliers that are not listed on your files you can easily add them by utilizing DNB’s trade reference builder program. By adding just a couple of additional trade references with years of payment history you can dramatically improve your business credit score.
  5. Increase Credit Limits – Don’t hesitate to request a credit limit increase with suppliers or creditors that you have a good track record with. But keep in mind, if you’re not utilizing your existing credit lines and using a good portion of the limit a supplier or creditor will flat out deny your request.
  6. Establish a Reporting Bank Loan – Getting a reporting bank loan on your files is priceless and can open more doors than you can imagine. Many creditors realize the scrutiny that banks impose on a company in order to get a loan so simply having one speaks volumes for your company’s creditworthiness. A good strategy is the CD Secured loan which many banks still offer to this day.
  7. Diversify Your Credit Types – This by far is one of the most important factors for a strong business credit score and report but it’s the one that is least discussed. Your company should have a diversity of credit types reporting on its file such as trade credit, revolving credit, lease credit, lines of credit, etc.

By getting listed with the major business credit bureaus and applying these seven strategies you can expect your company to be well on its way to maximizing its business credit scores and reports.

Ready to maximize your business credit scores? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, Banking contacts, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit building system helping business owners build small business credit. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

Where Does a Business Credit Bureau Get Its Information?

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Business Credit Bureau

 

As a business owner it’s important for you to understand the integral role that a business credit bureau plays in the world of business finance. The data it collects on your business can impact whether or not your application for credit is approved or declined, the rate of interest your company will pay and even the amount of credit you can obtain.

In simple words, a business credit bureau is a repository of collected trade and credit information on millions of companies.    

All this collected data is compiled into what are known as business credit reports which are furnished to potential creditors so the creditors can make sound credit granting decisions.

The integrity of this information being disseminated is vital to the success of our country’s credit system.

So it’s essential for you to know how a business credit bureau gets its information about your company. The more informed you are the better you can ensure that your company is being portrayed in the right light to potential creditors.

There are some primary and secondary sources, which are:

  • Incorporation filings from state and county courts
  • Business registrations (state, city, county)
  • Corporate financial reports
  • Self reported data from company principles
  • Payment data from suppliers and creditors
  • Banking data from suppliers and creditors
  • Companies granting credit (vendors, suppliers, lease companies, etc.)
  • Uniform Commercial Codes (UCC Filings)
  • Contracts, grants and loans from the Federal government
  • Bankruptcy filings from state and county courts
  • Public records of suits, liens and judgments
  • Internet data mining
  • Yellow pages and other print directories
  • News and media
  • Company press releases

As you can see all these sources contribute to the information that goes into creating your business credit reports. So stay consistent with all the information you provide about your company so there is no discrepancy or mismatched data.

You can always search the database of a business credit bureau to verify if your company is listed and then order a full report to check for accuracy.  Dun and Bradstreet, Corporate Experian and Small Business Equifax all offer database search functions as well as business credit bureaus like Credit.net and Cortera.

Its one thing to get your company listed but what’s even more important is ensuring that your company information is being listed accurately

Ready to start building your business credit reports? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit building program providing corporate credit with no personal guarantee.  He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

US Bank Unveils ScoreBoard – A New Tool for Business Credit Cardholders

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US Bank Visa: US Bank Unveils ScoreBoard

 

In a press release today US Bank announced the launch of a new online payment management tool called ScoreBoard for its US Bank Visa small business credit cardholders.

In an effort to empower business owners with better management and decision making tools it can quite possibly set a new standard in services available to business credit cardholders.

ScoreBoard is an online tool that cardholders can access via their U.S. Bank Internet Banking Account and it provides two main features.

First, you can monitor all of your company’s credit card spending using various reporting formats. This can help you track spending patterns on an individual cardholder or on a company wide basis. In my opinion this is a good step towards making better sound financial decisions for your company.

Second, if you have a U.S. Bank Merchant Account you have the ability to compare your processing volume with the volume of others in your industry including number of transactions and average ticket sales. This can be very useful data for your company in more ways than you can imagine.

As you can see this type of tool can give your business that extra edge it needs in today’s competitive economy.  

Here is a brief overview of the press release:

MINNEAPOLIS, Jul 22, 2010 (BUSINESS WIRE) — U.S. Bank is helping small businesses make smarter decisions about the financial operations of their business with an online reporting tool, called ScoreBoard. The tool provides trending and reporting data that allows customers to monitor their own credit card spending and also compare their card sales data to industry trends.

“ScoreBoard is unique because it gives our small business customers the ability to monitor their own spending and insight into how their sales trends compare to similar merchants in their business category,” said Pam Joseph, U.S. Bancorp Payment Services vice chair. “For our customers who have a U.S. Bank credit card and merchant account, the tool provides a comprehensive view of their business trends.”

Business owners who have a U.S. Bank-issued small business credit card can access ScoreBoard through their existing Internet Banking platform. They can use ScoreBoard to:

— Monitor card spending by an individual employee cardholder or for their entire business.

— Review transactions over various time periods and categories, such as travel, office supplies, home improvement and gas purchases.

— Examine their purchase activity by volume, average ticket price or merchant name.

Merchants who process their payments through U.S. Bank Merchant Services can use ScoreBoard to:

— Review sales by volume, average ticket price, or payment type over various time periods.

— Determine their growth rate for card sales over a selected period of time.

— Benchmark their card sales performance against other small businesses in their industry or geographic area by looking at ScoreBoard’s overview of consumer spending trends.

You can read the full US Bank press release titled U.S. Bank Introduces ScoreBoard, an Online Payment Management Tool for Small Business on U.S. Bank’s web site.

SOURCE U.S.Bank

Looking to obtain the best business credit cards? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to premium vendors, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit solutions membership helping business owners build small business credit. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

411 Business Listing: What’s All the Fuss About?

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411 Listing: 411 Business Listing

Why is getting your business listed in the 411 directory such a vital part of the business credit building process?

Does it really matter whether or not your company is in the White Pages or registered with Directory Assistance?

Absolutely!

As a matter of fact you can expect to have a much harder time getting approved for business credit without one.

The reason is when applying for credit with a supplier or creditor one of the very first things checked to verify the legitimacy of your company is whether or not you have a 411 business listing.

A non listed business will automatically trigger a red flag with most creditors and result in a denial of credit. So in order to avoid getting turned down you should first verify whether or not your company is listed prior to applying for credit.

Another key factor for getting a 411 listing is in driving customer sales for your business. Have you ever called Directory Assistance to find a company and wound up at a dead end because it wasn’t listed?

Don’t let this happen to you!

Now that you know the importance of getting listed in the 411 directory let’s cover what it takes to make it happen.

You’ve probably heard that in order to get a 411 business listing you had to have a dedicated business phone line.  Services like Voice over Internet Protocol (VOIP) and cell phones didn’t work.

But that was the past.

Luckily times have changed and with more and more businesses using cell phones and VOIP as their primary source of communication it couldn’t have come at a better time.

Today, you can add cell phone numbers or VOIP phone numbers to your local directory assistance for minimal costs and in some cases free.

Here are three ways to get a 411 Business Listing:

Verizon Business – There are four main Verizon offices with each servicing several states. You will need to call and say that you want to get a “foreign listing”. You will need to provide them your name, company name and business phone number. The cost varies in each state and if you’re located in California it costs a $30 set up fee and $3.25 per month.

*you do not have to be a Verizon customer to use its “foreign listing” service.

Frontier Directory Services – To contact call 877-547-9773. This company handles various regions within the U.S.

Wireless Listings – You can now get your business cell phone number listed in the 411 and the print directories no matter which wireless carrier you use. There is a monthly fee for this service and you can also select which Verizon print directories you want your number to appear on.

List Yourself – This is a free 411 listing service and once you submit your business information it offers several options for you to validate your business phone number. Once your number is validated then your information is sent to the directory assistance databases used by all of the major carriers.

Keep in mind that because this is a free service it may take you several attempts to get your number successfully submitted and listed.

There are many other ways to obtain a 411 business listing that do not require monthly fees or trial and error but it’s important to get listed no matter what option you decide.

It will not only legitimize your company but also help potential customers find you. Don’t let a non listing cost you business credit and potential sales for your company.

Ready to get a 411 business listing and start obtaining business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to premium vendors, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

To Your Success In Business and in Life!

Did This Blog Help You? If so, I would greatly appreciate if you like and shared this on Facebook and Twitter.

About the author

Marco CarbajoMarco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com,  have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.

Looking for the Best Small Business Credit Card?

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Best Small Business Credit Card

 

As a small business owner it can be a challenge on deciding what the best small business credit card is that best serves the needs of your company. Without a complete understanding of all the types of cards that are available it’s easy to make a mistake.

In this post I hope to provide you with better insight into all the types of business credit cards that are available in the marketplace.

Each card has its own unique purpose and can benefit your business in many ways. So it’s not uncommon that you’ll find several different types of cards that you’ll want to obtain for your company.

Here are the different types of business credit cards you have to choose from:

Business Check Card

This card works like a business checkbook because the limit is the amount of funds you currently have available in your small business checking account. Every time you use it to make a purchase the amount charged is deducted right from your bank account.

You can easily obtain a business debit card from the bank that services your business checking account. Keep in mind that using a business debit card does establish bank history (bank credit) but does not build business credit history.

Prepaid Business Credit Card

These cards provide a convenient alternative to carrying cash and work just like a credit card. You simply add funds to your account and whatever amount you add is available to use for purchases.

You never overdraw on this account and it also allows you to track your company expenses like a business check card. There’s no interest rate or APR and the fees are minimal if any.

Some business owners issue these cards and pay their employees via direct deposit which saves the company money in issuing standard paper checks.

Secured Business Credit Card

These types of credit cards are specifically designed for businesses with no credit or less than perfect credit history.

It requires a security deposit which establishes your card’s credit limit. In most cases a minimum deposit of $500 is required and once you begin making purchases you will receive invoices like a regular unsecured business credit card.

In my opinion these cards are ideal because it helps establish business credit, control spending, eliminates personal liability and protects your personal credit files.

Unsecured Business Credit Card

This card is the complete opposite of the secured business credit card because no security deposit is required. Credit limits are based upon many factors depending on the issuer and can range from personal credit and/or business credit ratings, years in business, annual revenues and so on.

Many of these types of credit cards give your business the opportunity to earn perks and rewards but one of the more important things you should pay attention to is liability and credit reporting.

If your business has established a strong enough business credit rating you may qualify for no personal guarantee business credit cards.

Business Charge Card

A business charge card has all the convenience of a credit card without the high price of interest. When using this card you’ll have to pay your balance in full each billing cycle.

Because you can’t carry a balance, a charge card doesn’t have a periodic or annual percentage rate, so there is no rate for a charge card issuer to disclose.

Finally, one of the new kids on the block is the Merchant Card. With no personal credit check, guarantee, or collateral required it definitely is a card worth looking into.

I couldn’t possibly cover every aspect of these cards in this post but I hope that you have gained a better insight into deciding what the best small business credit card will be for your company.

Looking to obtain business credit cards for your company? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to secured and unsecured business credit cards, merchant cards, premium vendors, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit builder system helping business owners build small business credit. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. 

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