As a savvy business owner, it is your responsibility to get the most out of all of the possible aides to develop your company. Business credit reporting agencies are just those types of aides. However, reporting agencies can be a double-edged sword. It is up to you to make sure that credit reports on your company are positive. You do that by developing proper credit the same as you would for your own personal credit.
The three main business credit-reporting agencies are Dunn & Bradstreet™, Equifax™ Business, and Experian™ Business. There is a couple of minor reporting agencies that also bear watching: FDInsight™, BusinessCreditUSA™, and ClientChecker™. You may recognize a couple of the names because Equifax and Experian also have divisions that are better known for their personal credit reporting services.
It is necessary you set up an account with the proper business credit reporting agencies. While it is a easy task, it can seem daunting for new business owners. That is why a reputable business finance advisor is especially valuable. They will make sure you are on track and developing your company's credit the right way.
Along with keeping track of your business' credit scores, there are additional incentives to joining business credit reporting agencies. Some have valuable help for new businesses. Whether you manage all of your own financial affairs, or have a business advisor, you should know and understand what is going on at all times. You are the only one ultimately responsible for the financial success of your business. You need to understand how each of the business credit reporting agencies creates your credit score.
Our Business Credit Building System will help your business build strong business credit scores with all three business credit reporting agencies
Just like your personal credit, how your business handles its bills and the amount of credit vs. income have the most impact on credit scores. Always make your payments on time. Be careful because accounts can have widely varying payment schedules. Never assume a 30-day payment period. A smart move for a small business owner is to start with their suppliers and get vendor credit accounts. These are like "in-store" credit cards. Those are easier to obtain than most credit cards. However, vendor credit is the most likely to have shorter payment periods.
The next step is to obtain traditional bank credit cards like Visa and MasterCard. Make sure that the banks you apply for credit from report to all of the main business credit reporting agencies with on time payments as well as late or missing payments. If you are not careful and get an account with a bank that only reports negative payments, you could have credit for years with exceptional payment and never build any credit. Seek the advice of a qualified business finance advisor to make sure you are taking the right steps to giving your business the strong financial backing.
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