Building Business Credit: How To Establish
Your Company Credit File
Establishing your business credit is just as important as establishing your personal
credit. Having an excellent business credit score means you'll be in the best position to negotiate top deals for
your company, from low interest loans to competitive credit cards rates, without jeopardizing your personal credit
score. Building business credit is similar as building personal credit and requires
a pro-active approach.
Business credit is evaluated differently from your personal credit, although it has
similar methods. Business credit is a measure of an organization's ability to obtain goods or services based on a
promise to pay for them later. Business credit is set upon a scale of 1 to 100, with 80 being an excellent
rating. The many ordinarily accepted routine of commercial operation zone credit is a Paydex score, which is
published by Dun & Bradstreet. The paydex is D&B's unique dollar-weighted numerical indicator of how a
firm has paid its bills, based on up to 875 payment experiences reported to D&B by various vendors. The
standard paydex bases this calculation on up to 24 months of payment information.
Lenders typically reserve business credit lines for businesses that have a proven track
record. Credit lines may be secured or unsecured, and they usually require you to pay a minimal annual fee to cover
administration costs. Lenders and other businesses will look favorably on your good payment history with your
business line of credit and other vendors, especially when that payment history demonstrates a balance that has
been successfully paid out over a period of time. Lenders have long used these models to assess individuals'
creditworthiness, and they now also use them to qualify some small businesses for loans. Scoring models in essence
automate the credit underwriting process and can limit the added value of more qualitative information that might
be gleaned through so-called relationship lending by a local lender.
Click here Small Business
Solutions: Business Resources And Eleven Softwares All-In-One Toolbox To
Help You Run Your Business Efficiently Today.
Click the links to view sample of business credit
Dun & Bradstreet business
information report sample
Dun & Bradstreet enhanced
comprehensive report sample
Corporate Experian Business Credit Score Report sample
Equifax Commercial Credit Report sample
Credit Rating: Learn How To Establish And Improve Your Corporate Credit,
Score And Ratings
Business Lines Of
Credit: Learn How They Work Before You Apply
Lines Of Credit: Tips How Credit Lines Work
Secured Business Credit Card: Tips How To Establish, Rebuild And
Repair Your Corporate Credit
Small Business Management Consultant:
Includes Legal Service Plans To Help You Protect And Grow Your
Small Business Management Software: 11 Powerful Small
Business Software Solutions All-In-One Toolbox To Streamline Your Business Today!
View all Business Articles View all Small Business FAQ