Major credit card issuers are targeting small business owners in an all out effort to expand its commercial credit card business.

According to Synovate, issuers sent out a whopping 46 million commercial credit card offers in just the first quarter of 2010! That’s over a 250% increase from the previous year while consumer credit card offers only increased by 29%.

With these types of numbers it’s led people like Senator Charles Schumer to believe that credit card issuers are attempting to evade the new restrictions on consumer cards.

Even though the CARD Act does not address commercial credit cards business owners should take a careful look at the benefits that these cards provide over personal credit cards.

Here are some of the major benefits:

• Obtain higher credit limits
• Build business credit files
• Protect personal credit files
• Control employee spending
• Take advantage of business perks

These benefits alone should give you reason enough to utilize commercial credit cards for your company. But before you apply here are my seven key steps you should take in order to select the right cards that best fit the needs of your business.

1. Complete a Credit Assessment – Determine what type of assets you and your company have so you know what types of credit types and limits you can expect to qualify for.
2. Select Business Credit Applications – After reviewing the six major types of business credit applications decide which ones that your company is willing to apply for. This step alone will prevent you from making costly mistakes and taking unnecessary risks.
3. Select Commercial Credit Card Types –Each type of card has its own unique purpose so if you are looking for the best small business credit card you should know every type of card that’s available. This will enable you to decide what types of cards will meet your company’s needs.
4. Identify Cards Matching Your Criteria – Once you have identified the applications and types of cards your company is looking for now you will need to locate the cards that fit your commercial credit card criteria.  This makes the whole process so much easier and less time intensive because you know exactly what you’re looking for.
5. Review Approval Requirements – As soon as you find cards that match your criteria review the card’s credit qualifications. For example, some cards may require a personal guarantee if your company does not meet certain requirements so be prepared ahead of time before you apply.
6. Set User Guidelines – If you plan to issue cards to employees be sure to set user guidelines as well as credit restrictions with the card issuer so you can protect your company.
7. Set Credit Guidelines – As a company it’s vital that you maximize the payment experience being reported on your business credit reports. For example, you decide that each card will not exceed 30% of the debt to credit limit ratio and all invoices will be paid a minimum of 10 days ahead of the due date.

All of these steps are meant to serve as a helpful guide and a reminder to you that all commercial credit cards are not created equal. Choosing cards that meet the guidelines you set will not only empower you but protect you from risks that you’re not willing to take.

Looking for the best commercial credit cards for building 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,commercial 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 step-by-step business credit builder system for busines owners. 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. 

During tough times business owners are looking to build more customer loyalty and discover new ways to increase sales. You may have already implemented the specials, bonus gifts, certificates and discounts but there is one option that can make a dramatic impact to your bottom line.

This has proven to improve sales by as much as 50% and may even attract a new kind of customer to your business. By extending credit to qualified customers you not only improve sales but also offer an excellent alternative to those wanting to conserve their cash.

Extending credit allows customers to purchase your products and/or services upfront but defer the actual payment for a later date. In our industry this is known as trade credit or vendor credit. The larger the purchase amounts your average customer makes in your business the greater the risk your company will be exposed to.

If this sounds like a risk that you are not willing to take because you have hard costs that must be covered keep in mind that you are the one that decides what the credit terms will be.

Some businesses are willing to extend 100% financing for their customers while others require a 25% or even 50% down payment towards the amount of the purchase price.

So before you get started there are several key points to remember:

Credit Risk Assessment

Decide what amount of risk your business is willing to accept including whether it has the financial resources to support the transaction. You will also need to consider the chances of never being paid on a purchase as part of this assessment.

Credit Terms and Conditions

Decide how much credit you are willing to extend as well as how long you expect to wait for payment. The terms and conditions can vary all the way from expecting payment in full in as little as 10 days to as long as net 90 day terms or even more.

Requiring a down payment can also minimize your risk which many companies utilize for the first few purchase orders prior to accepting 100% financing.

Credit Approval Qualification

Will you extend credit to both consumers and businesses? If so, how will you determine whether or not they are creditworthy?

For consumers you may decide on a credit application with references or take it a step further and include a credit check with a consumer credit agency.

For business customers you may want to include a business credit application along with checking their business credit file. There are a variety of reports you can pull and if you expect a large amount of applications you can even subscribe to a business credit bureau for unlimited reports.

Credit Policy

Develop a credit policy that covers the entire process of extending credit to customers. From application submission all the way to the collection process if it’s required. The more detail you have in place the better your accountant, sales staff and management can facilitate the program.

Be sure to also look at a customer’s purchase history by conducting a credit review every several months. With a review you may consider increasing the size of their credit limit especially if they are requesting an increase and have a solid payment record to back it up.

By extending credit to customers you can separate yourself from the competition, increase sales and gain a greater market share. While there is risk involved use the key points outlined in this post as a guide to extending credit.

Ready to get listed with the business credit bureaus? 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, merchant 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. 

Monitoring and protecting the credit reports you’ve established for your business should be a part of your company’s overall strategy.

Why is it so important?

First of all, before you apply for credit with a supplier or lender you should know firsthand where you stand with your reports and scores. This will give you better insight into what type of financing you may qualify for ahead of time and whether or not the time is right to apply. 

Secondly, consumers are not the only target when it comes to identity theft so in order to protect your company you must keep a close eye on any unusual activity on your reports.

Finally, if any errors or outdated information appears on your business credit reports you can take the necessary steps to correct the mistakes.

Incorrect information can jeopardize your company’s ability to obtain credit so correcting errors plays a key part in business monitoring.

Now that you know the importance of monitoring your business credit let’s review some of the services that are available from each of the major business credit bureaus.

Business Credit Advantage – Experian

This service offers all the goodies that a business monitoring service should include like:

• Unlimited access to your report and score
• Tracking of any changes to your files
• Continuous monitoring

Recently Experian just announced a newly added feature called email alerts. It gives you instant notification when things like newly opened trade lines or score changes occur on your files.

But what’s really unique is it also notifies you of a business address change which most business owners don’t realize is a warning sign of identity theft. 

Business Credit Monitoring – Equifax

While having unlimited access to your files is pretty standard among monitoring services Equifax also uses an instant alert notification via email. These alerts get triggered when any of the following occur on your files:

• New inquiries
• Negative items appearing like bankruptcies, judgments, liens, charge-offs, or delinquent amounts greater than or equal to 60 days past due.
• A change of 20 points or more on your score

DNBi SelfMonitor –Dun and Bradstreet

With DNB you have several different monitoring services to choose from but it all includes unlimited access to your reports, paydex scores, and email alerts.

But one of the most unique aspects of its monitoring service compared to the rest is the ability to add credit references to your files. For example, the DNBi Self Monitor gives you the opportunity to add 4 credit references in the first 90 days of your service.

Each of the business monitoring services I’ve shared with you provides all the necessary tools and features that a business owner needs to manage each of its files with the bureaus.

When you build credit files with the major business credit bureaus you are establishing the creditworthiness of your company. However, in order to protect and manage your company’s good credit requires that you monitor your files on a regular basis.

Looking to build your business credit files? 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, merchant 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 step-by-step business credit building program. 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. 

Before you begin applying for credit it’s important to determine what strengths and weaknesses your company brings to the table.

Are you a startup or have you been in business for several years?

Do you have projected revenues or actual revenues coming in year after year?

Does your company process credit cards on a monthly basis? If so, how much volume?

Are you struggling with poor personal credit or do you have strong credit scores?

Does your company have any assets or are you relying on your own personal assets?

Once you have made an honest assessment you’ll have a better idea of what types of credit your company will be able to start obtaining right away.

I have assembled the six major types of business credit applications along with some examples so you can easily identify which best fit the needs of your business.

6 Major Types of Business Credit Applications

1. Personal Credit Check -Personal Guarantee – Reports to Personal Credit Reports (Business Credit Cards from Chase, Bank of America and other major bank cards)
2. Personal Credit Check -Personal Guarantee – Reports to Personal Credit Reports and Business Credit Reports (Capital One Business Platinum : that card reports to Corporate Experian, Small Business Equifax, Experian, Transunion, Equifax)
3. Personal Credit Check –Personal Guarantee – Reports to Business Credit Reports (Discover Business, Comerica Business Mastercard)
4. Personal Credit Check –Business Credit Check – No Personal Guarantee – Reports to Business Credit Reports (Sam’s Club Business Discover card)
5. Business Credit Check – No Personal Credit Check –No Personal Guarantee – Reports to Business Credit Reports (First Equity Card, Secured business credit cards, Vendor credit lines)
6. No Business Credit Check – No Personal Credit Check –No Personal Guarantee – No Business Credit Reporting (Merchant Card)

While most businesses start off with trade credit and secured business credit cards you can easily obtain other types of credit depending on what you are willing and not willing to do.

If you are against a creditor pulling your personal credit then you have to realize that your business must be able to show that it’s a creditworthy company.

Creditworthiness starts with establishing strong business credit files, solid business credit scores and favorable bank ratings.

Ready to start applying for 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 all types of business credit applications including vendor lines of credit, fleet cards, merchnt 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 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 step-by-step business credit building system for business owners. 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. 

What should you expect when building company credit? How long should it take to obtain the financing your business needs?

There’s no cookie cutter answer to these questions because every business is different and has its own unique contributing factors. For example, a five year old business will have greater business credit opportunities than a company that just opened its doors a month ago.

In addition, the credit needs for every business will continue to change as the business expands and requires additional funding. There’s not a point when a business owner says I’ve arrived because there’s always room for growth, expansion and improvements.

I love using analogies so I thought this would be a great opportunity to share with you a personal story of mine that can be compared to what many business owners face when establishing company credit.

August of last year I took a trip to visit my sister in New Mexico and I never would have imagined that it would be such a life changing experience. During my visit we decided to take on the La Luz trail which was a 10.5 mile hike up the Sandia Mountain which reaches over 10,300 feet.

I thought the hike would be no problem for me because I was in fairly good shape. But, what happened next was not at all what I expected.

After enduring the steep foothills and rough terrain during the first 2 miles I found myself utterly exhausted. My heart felt like it was going to pop out of my chest and my legs and feet were in agonizing pain.

I stopped and realized there was no way I could continue this hike so I turned around and walked back down the mountain. I felt defeated and mad at myself for not being physically capable of finishing what I started.

On the way down I made a promise to myself to make some serious lifestyle changes. I knew I would be coming back next year for a visit and would face the Sandia Mountain hike again.

When I got back from the trip I started going to the gym every day. I even took a before photo shot of my hefty 244pound body.

In just two months I lost 44 pounds, 4 inches off my waist and was working out six days a week. My energy levels soared and I was now in the best shape of my life.

Just last week I went back to New Mexico again to visit my sister and I was ready to take on the La Luz trail hike for the second time. This time I was 44 pounds lighter and also had my 14 year old son with me which was some extra motivation.

After 5 hours, 3,159 calories and 10.5 miles later I reached the top of the 10,357 foot Sandia Mountain! It was an amazing feeling to win and share that success with my family. The right training and preparation paid off and now I’m ready to take on the next big hike!

This personal story of mine is a lot like what business owners may experience when they decide to start establishing company credit.

They begin with positive expectations but lack the much needed preparation and training to complete all the steps required for building company credit. Without being prepared they face setbacks and even roadblocks that prevent them from progressing.

As a business owner you will need to first plan, prepare and then take action. Building company credit is nothing like hiking a big mountain but it sure can feel like an uphill battle without the right training, guidance and support.

Looking to establish company 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 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 program providing no personal guarantee 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. 

There are quite a bit of obstacles that every aspiring entrepreneur faces as they strive to do all the right things in order to make their dream business a reality.

It can be an overwhelming experience especially if you have limited support, funding and tools at your disposal. Whether you have a product or service to bring to the marketplace careful planning and execution can greatly improve the success of your new venture.

To help you in your preparation I have assembled my top 25 rules which can greatly improve your ability in obtaining the credit your company needs.

1. Select the proper entity structure that best serves the needs of your business.
2. Choose a business name that does not trigger red flags with the business credit bureaus.
3. Assemble a winning financial team that understands the nature of your business and its vision.
4. Avoid selecting a high risk SIC and NAICS classification code for your company.
5. Do not use a P.O. Box as your business address. However, a P.O. Box for your business mailing address is acceptable.
6. Verify that your business is 411 listed prior to applying for credit.
7. Always use the same exact company information when completing registrations, applications and documents.
8. Have a fully functional company website before applying for credit. Parked domains and web sites under construction are immediate red flags.
9. Do not use a free email account for your company email address.
10. Establish a “low 5” bank rating as soon as possible in order to build bank credit.
11. Obtain diverse credit account types in order to establish a strong business credit profile.
12. Pay invoices 10, 15 or 20 days ahead of the due date.
13. Use your credit on a consistent basis in order to establish good payment history.
14. Keep debt to credit limit ratios at no more than 30% in order to minimize your company’s debt exposure
15. Utilize all credit types (business credit cards, business charge cards, business debit cards, prepaid business credit cards etc.) to your advantage as each one serves a unique purpose.
16. Use secured credit cards in order to start building business credit for your company.
17. Start a personal credit recovery plan if you have less than perfect credit.
18. If you process credit card transactions every month consider using a merchant card in order to access cash at your convenience.
19. Extend credit to consumer and business customers and increase sales by as much as 50%.
20. Report the payment experience of your business customers to the business credit bureaus.
21. Get your company listed with the major business credit bureaus.
22. Establish a reporting bank loan on your company credit profile.
23. Create a complete and sound business plan.
24. Monitor your business credit profiles.
25. Add positive trade references to your file through DNB’s trade reference builder program.

Let these rules serve as a helpful guide as you strive towards your goals of obtaining the financing your company needs.

Ready to get listed with the major business credit bureaus? 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) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit 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.

Bid for Government Contracts

If you are a sole proprietor, corporation or partnership and plan to do business with the federal government you will need to be registered in CCR before being awarded a contract.

There’s no cost to register and you can update your company information at any time and in one location via a CCR log in.

Keep in mind all federal government agencies can retrieve your company data from this one central location making the process seamless and hassle free.

So what is CCR?

The Central Contractor Registration (CCR) is a government-wide registry and its sole purpose is to collect, validate, store and distribute information.  

CCR shares the collected data with federal agencies’ finance offices, federal government procurement and electronic business systems.

First you should check to see if your company is already registered by going to the CCR web site and clicking on the ‘CCR Search’ tab.

You will need to supply your company’s DUNs number so if you don’t have one than I can guarantee that your company is not listed because a DUNs number is required to register in CCR.

CCR Registration

Here is checklist of required information in order to register in CCR:

• Employer Identification Number (EIN) or Taxpayer Identification Number (TIN)
• DUNs Number –Your business can obtain a DUNs number within 24 hrs absolutely free through the D&B D-U-N-S Request Service for US Federal Government Contractors and Grantees.
• Point of Contact (CCR POC) – Designate someone in your company who will be directly responsible for maintaining and updating the company CCR profile.
• Electronic Business Point of Contact (EB POC) – This will be the person in charge of deciding which employees of your company may represent your company to federal business systems.
• Marketing Partner ID (MPIN) – This will be a special password that you will have to designate during the registration process.

It’s extremely important that all the detailed information about your company matches exactly in each of the DNB, IRS and CCR databases. Any mismatched data can result in a delay of your CCR registration.

Paying attention to details not only impacts your ability to get registered with CCR but also plays a vital role in the business credit building process too.

My suggestion is to create a document that contains all your company details in order so anytime you have to complete a registration or credit application you use the document for reference.

That way you can be certain that every time you submit your company information it’s a 100% match across all data bases.

For additional information about CCR registration you can download its free CCR User’s Guide as well as view step-by-step screen shots of the entire CCR Registration process.

Ready to get listed with the major business credit bureaus? 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) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit 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. 

If you plan on applying for financing there are a couple of key points that you should take into consideration before taking the leap.

Getting approved for a loan these days requires careful planning and preparation on your part. Lenders have certain expectations and underwriting criteria they have to meet so the better you come prepared the greater the chances of approval.

Here are my Top 7 Deal Makers or Deal Breakers in Financing for Business:

Credit – Lenders will evaluate the strength of your personal and business credit scores. You should be fully aware of how you personally rate with the three main consumer credit agencies.

You should also know where your company stands with the three main business credit bureaus as well.

Most traditional lenders will require a minimum personal score of 680 and a business score of 75 in order to be considered.

Capital – Having skin in the game as a startup is very important to a lender or investor. Typically you should have at least 20% or more of the loan amount you are requesting invested in your business.

Another factor that lenders use to assess your company’s capital is to check your company’s bank ratings three to six months prior to the date of your loan application.

As mentioned on previous posts you should shoot for a low 5 rating ($10k balance) at least 90 days prior to applying.

Collateral – Lenders may require that you pledge collateral to secure the loan but not all types of collateral are accepted. While real estate, heavy equipment, CDs, Stocks/Bonds and Accounts Receivable are acceptable forms of collateral items like jewelry, mutual funds and IRAs are typically not.

Conditions – Certain areas that you have no control over but can affect your ability to obtain financing include economic, environmental and even political conditions. For example, during the recent economic downturn we have seen how lenders reacted by tightening their grips and cutting the credit lines of thousands of small businesses.

Character – Ever heard the saying ‘people will do business with people they know, like and trust.” Well, it’s true!

When you have a solid reputation and operate your business with the highest integrity it will make all the difference in the world.

Capacity – Do you have what it takes to pay back the loan? Lenders need to know that you have the necessary qualifications and experience so they can be assured that there is a minimal risk of default.

One of the ways to present your credit capacity to a lender is through a business plan. A business plan can answer many of the questions that cause lenders to decline an applicant.

Cash Flow – The flow of cash coming in and going out of your business can tell a lot about how you manage your company’s finances. A lender can see firsthand whether your business is generating enough cash flow to repay your loan.

This is where you want to make sure that you are not making unnecessary expenses so your cash flow statement can portray your business in the right light.

Each of these points can play a pivotal role when seeking financing for your business. The better the preparation you have the greater the possibility for funding approval.

In search of business financing? 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) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit building system providing no personal guarantee 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. 

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. 

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.