Business Credit Building
Building a creditworthy business is essential for small business owners today. As you know the strength of your FICO® score impacts your ability to acquire personal credit. But did you know the FICO® SBSS Score, Paydex® Score, Experian Business Credit Score℠ and Equifax Business Credit Risk Score℠ impacts your ability to obtain business credit?
“Just as your personal credit has a big impact on your financial health, your business credit can help you get competitive business loan rates and terms from potential suppliers,” says Marc Kirshbaum, president of Experian’s Business Information Solutions group.
Now the task of building credit for your business doesn’t have to be a long drawn out process. Instead you can take a proven and systematic approach containing a series of steps in order to establish a creditworthy business. Jeff Stibel, CEO of Dun & Bradstreet Credibility Corp. says, “Today, it takes a very proactive approach to building a strong credit score for your business.”
In today’s post we’ll take the guesswork out of getting your company what is known as ‘credit ready’ with the free download of our Business Credit Blueprint. In this blueprint we show you the three key steps to building business credit.
We review the foundational steps to complete so your company can meet the standard requirements imposed by the majority of lenders and suppliers. For example, did you know the name of your business has an impact in your ability to acquire credit?
Even if you are already incorporated or have been in business for a while, we show you how to check to see if your business name conflicts with other established businesses or if it could potentially cause Trademark infringement. Throughout the blueprint we cover the initial foundational steps needed to start the ‘credit ready’ process.
Remember, if you want to get away from relying on personal credit to obtain financing; lenders and suppliers will need to see that your business is financially sound, stable and manages its financial obligations properly. They determine this by checking your business credit reports and ratings. Unless your business has a creditworthy profile, lenders will continue to rely on your personal credit ratings to assess the level of risk your company presents.
Business credit will enable you to conserve cash flow by being able to purchase products and services your company needs and deferring the payment for a later date. In addition, you gain access to multiple sources of credit & financing so you can cover unexpected expenses your company may face.
Do lenders really use business credit reports?
According to Creditera, in the first six months of 2013, Dun & Bradstreet had 45 million business credit report requests and Equifax Commercial had 35 million. If that isn’t enough the NSBA Small Business Access to Capital Study reported that 20% of small business loans are denied due to business credit.
Unfortunately, many small business owners don’t even know there is such a thing as a credit score for a business and therefore lose opportunities to improve their own, says Jeff Stibel, CEO of Dun & Bradstreet Credibility Corp.
It’s important to realize when you build business credit you are building an asset for your business. With a creditworthy company you have the potential to obtain better rates, terms and higher credit limits compared to relying on personal credit alone.
To get that jump start you need to start the business credit building process CLICK HERE to download our new Business Credit Blueprint today absolutely FREE.
Until next time…
Looking to build your 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 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’.