Experian Business Credit Report
In his latest article via Corporate Experian, Gary Stockton does a great job explaining how businesses should strengthen their business credit reports with Corporate Experian. Stockton explains five ways you can be proactive in your business credit building efforts.
According to Stockton, “If you run a company, your business credit is akin to your reputation. Without a strong credit profile, you face the reality of being denied an account.” Nothing can be further from the truth. A company’s creditworthiness plays hand in hand with a company’s credibility.
Whether you’re a start up or existing business, it’s crucial to keep tabs on the health of your business. Here are some ways Stockton points out on how you can be proactive in strengthening your Experian business credit report and credit standing.
1. Build Your History – The most important first step after obtaining a small business credit card is to put your new found credit to good use.
In addition to this point make sure your credit usage is consistent. One time purchases on business credit cards or vendor credit lines does not establish enough payment history.
2. Consider Your Personal Credit Score – While it’s best to keep business credit completely separate from your personal finances, there remains a connection between the two. Small business owners can help themselves exponentially by maintaining a good credit score.
Remember, having strong personal credit along with strong business credit simply opens you up to more financing opportunities and enables you to qualify for even larger credit lines.
3. Make Timely Payments – A regular and stable bill-payment history is not the only factor involved in calculating a business’s credit rating, but it’s one of the most important ones.
Very true, and I’ll take it a step further. To maximize your Experian business credit report pay more than the minimum payment and pay your invoices ahead of the due date. Paying more and better than terms is an excellent way to strengthen your Experian Business Credit Report that much more.
4. Establish Verifiable Accounts – One proven way to make a major impact on your business credit score is to expand the number of vendors with whom you have financial dealings.
Stockton hits the nail right on the head with this one. Not only is it important to establish multiple trade lines but you also need to establish a diversity of credit as well. Vendors provide short term financing but it’s crucial to show that your business can handle revolving lines of credit, installment loans, etc.
5. Monitor Scores – Just as you want to keep regular tabs on the health of your individual credit report, it’s advisable to do the same for your Experian business credit report and score.
I’m sure the idea of monitoring your business credit files is sinking in. Remember the recent post about free business credit scores and alerts? Remember, strengthening your Experian business credit report is only the beginning, you should be just as proactive at protecting and maintaining the good credit you’ve built.
For more information on how to build your business credit reports become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit builder 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 business credit building audio seminar ($597 value) =>
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About the author
Marco 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’.