Build Business Credit History

Business credit builder companies believing it’s too difficult to build company credit on a shoestring budget are in for a pleasant surprise after reading this post. Every business regardless of how small the amount of money it can spend has mandatory expenses it cannot avoid.

These expenses in my book are opportunities for you to build business credit history. No matter what amount of money you’re spending right now to operate and grow your business you can benefit by having it reported on your company’s corporate credit file.

Here is a sample list of the typical expenses every business incurs that can be used to build business credit history:

• Website development – some companies in the marketplace that develop web sites not only extend credit to start ups but also report your payment experience to the business credit bureaus. If you already have a working web site then make a note of the company that you paid to build it for you.
• Internet services – are you paying a web hosting fee? If so why not have the monthly fee reported to your file? Are there companies that report web hosting fees to the bureaus? You bet!
• Phone services – another expense that is so widely overlooked that your company should get credit for on its report.
• Office supplies – many office supply companies offer vendor credit lines that you can use to purchase supplies your company needs. This is not only a great way to fund your short term needs but also an easy business credit builder.
• Postage/Shipping – instead of going to the post office and using cash to ship products, letters or materials why not use a shipping company that reports your payment history.
• Marketing – if you are using a printing company to create your brochures, business cards and marketing materials why isn’t your payment experiences with them being reported on your corporate credit file?

These are just a few of the items I review with my clients in my business credit practice. One of my members who own a home based business marketing children’s books had over twelve positive payment experiences added to her file after we did this exercise. Within two weeks after her profile was updated we got her approved for a $7,500 credit line with a marketing company which she is now using to expand her advertising reach.

It was much easier for her to get those items listed because she enrolled in the duns credit builder program offered at Dun & Bradstreet. This would be a good option if you already have companies that you work with that do not report to the bureaus. But if you’re just getting started then it makes sense to use companies that report so you don’t have to go through the additional work.

You may want to consider the Business Credit Insiders Circle  because we provide you with the companies that offer these services like web hosting, web development, marketing, office supplies and many more that all report to the business credit bureaus.

As you can see this is simply a business credit building strategy that takes what you are already spending to operate and grow your business and have it reported on your company’s credit file. When you showcase your company’s ability to manage its finances on its corporate credit file you can greatly increase the ability for your business to access the cash, credit and financing it may need in the near future.

To your business credit success!

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

Building Business Credit

While obtaining business credit cards, small business loans and a business line of credit is the common objective for many small business owners there is a growing demand for learning how to qualify without having to use personal credit or a personal guarantee.

I’m happy to see that more and more business owners are embracing the idea of completely separating your personal credit from business credit. Many of our new members were never aware of the danger that co mingling the use of credit profiles for personal and business can jeopardize the protection of the corporate veil plus limit the amount of funding their business can obtain.

 Here are twenty steps to building corporate credit without using a personal guarantee. Please note that I’ve used examples from my own business credit practice.

1. Incorporate your business and obtain a Federal Tax ID#- your Tax ID number will be the number that identifies your business and information. It’s just like how your social security number will identify who you are for personal credit.
2. Complete corporate conformity (411 listing, verifications, business license, etc.) –vendors, lenders and banks will do their due diligence prior to extending credit to your company. Don’t expect to receive credit by skipping these key fundamental steps.
3. Select the right business classification codes – avoid selecting codes that will trigger a red flag with the business credit bureaus and lenders. This can stop your business credit building efforts dead in its tracks.
4. Set up a complete profile with Dun & Bradstreet – Simply obtaining a DUNs number doesn’t cut it you will need to furnish additional information on your profile to give creditors a complete picture of your business. Remember there are companies like First Equity that offer no personal guarantee business credit cards but by invitation only. They purchase targeted lists from the business credit bureaus which you want your company to be on.
5. Add existing positive trade references – use business credit builder programs which can help you build business credit fast so if you have the references take advantage of it.
6. Apply for vendor lines of credit – getting business credit can be simple with companies that specialize in startup companies or businesses with no credit.
7. Pay invoices ahead of the due date – you can increase your paydex score to 90 or higher by simply paying your invoices 10-20 days ahead of the due date. A big plus on your files!
8. Build solid payment history – while account types and trade lines are a factor keep in mind that a payment track record is the final ingredient. Don’t think that one paid invoice will make your business capable of acquiring no personal guarantee credit lines or credit cards.
9. Monitor your business credit file – a no brainer and a good habit to adopt for your personal files as well.
10. Get listed with multiple business credit bureaus –target specific business credit bureaus that cater to your industry on top of the big three.
11. Set up a small business bank account –before selecting a financial institution for your banking make a list of the financial products you may need. Consider a credit union or community bank because they are much more flexible in today’s economic environment.   
12. Establish a minimum ‘low 5’ bank rating – know what your banks are looking for in business credit lines.
13. Obtain secured business credit cards
14. Open a small business credit line
15. Establish a diversity of credit – build a strong business credit profile by obtaining different account types. This includes trade credit, revolving credit, loans and leases.
16. Keep proper financials
17. Establish a well written business plan – A business plan is your blueprint that outlines every necessary component for the success of your business. Enough said!
18. Maintain personal credit scores at 680+ – when applying for no personal guarantee credit a lender or creditor may still require a personal credit check.
19. Build large trade lines with multiple tiers of credit –you can request for a credit limit increase usually after six months of good payment history. Before applying for larger tiers of credit be sure to know what the requirements for approval are.

20.  Stay informed! – join forums, social networks, read articles, subscribe to blogs and consider joining memberships like the business credit insiders circle.

Following these steps will provide your business opportunities to establish business credit in the name of your business while protecting your personal credit and personal liability.

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

On the previous post I reviewed two business credit builder products at Dun & Bradstreet that were great for start-ups and companies that had a few trade experiences they wanted to add to their credit profile. In this post I’m going to cover two more advanced products that have received a makeover that’s definitely worth mentioning.

Now remember that obtaining a DUNs number does not cost anything to your company but receiving your number can take over 30 days if you choose the free route. However, you can obtain your DUNs number in less than 24 hours by either purchasing one of its business credit builder programs that I’ve reviewed or if you are a government contractor, government vendor, or grant recipient.

Let’s take a look at these business credit solutions and how they can help build company credit for your business.

DNBi Self Monitor Plus Inquiries

Price $799

This product is similar to the DNBi Self Monitor Basic except that it allows you to submit up to 24 references over a period of 3 months for a total of 12 payment experiences to be added. The basic version allows you only a total of 4 payment experiences to be added. They provide this extra cushion just in case they are unable to contact one of your references for payment experience verification.

In addition you have the ability to track the inquiries that others are making into your business credit file. This is a great way to make sure you are up to speed on the latest information that vendors, banks, suppliers and customers are seeing and an effective way to determine if your business is generating the positive interest it needs in the marketplace.

If you choose to purchase this product then most likely they will waive the DUNs File Creator fee so don’t hesitate to request it. This product is ideal for you if you already have existing trade references that you want to add plus closely monitor the activity and inquiries on your file.
Some other product features include:

• Key D&B scores & ratings including D&B Rating, Financial Stress Score, Commercial Credit Score and Supplier Evaluation Risk Rating.
• Comprehensive overview of payment history including D&B’s PAYDEX
• D&B’s Credit Limit Recommendation
• Financial performance including Key business ratios that measure financial strength.
• An overview of public filings including Suits, Liens, Judgments and UCC filings.
• Notification (alerts) when significant changes occur within your credit file.
• Easy-to-use web-based interface

* Tip – there are business credit builder companies like the Business Credit Insiders Circle that provide access to vendors, suppliers, and companies that report to DNB for building small business credit.
DNBi Self Monitor Premium

Price $1,399

This product is the grand daddy of DNBs business credit solutions. In my opinion it’s a big upgrade to DNBi Self Monitor Plus Inquiries product because it allows you to submit up to 200 references over a period of 6 months for a total of 100 payment experiences to be added. The ‘Plus Inquiries’ version allows a total of 12 payment experiences to be added. That’s 88 additional references you can add with this product and 6 months time frame to do it.
Some of my members who have been in business for years and have just now realized they needed to build a business credit history found this product to be a no brainer. Since they already had long standing relationships with many companies they quickly had the ability to add dozens of trade experiences to their files and create a paydex score of 80+ in a matter of weeks!

*Tip – there are credit builder companies like BCIC that report your payments to Dun & Bradstreet. Not only do they give you access to vendors, suppliers, and companies that report to DNB but they also help you build business credit history too!

If you decide to purchase one of these DNB products or need some guidance regarding the status of your DNB report then call Tara Simone at Dun & Bradstreet and she will take good care of you. Her contact number is 610-882-6367 or email simoneT@DNB.com.

I hope that you found these product reviews to be helpful to you in getting started in building small business credit for your company.

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

Business Credit Builder

After speaking with my contact at Dun & Bradstreet today about its business credit builder programs there have been recent changes made this year that you should be aware of. These changes are good news for small business owners and make the programs offered at DNB more streamlined and affordable to establish, improve, and protect your corporate credit.

Now keep in mind that obtaining a DUNs number does not cost anything to your company but receiving your number can take over 30 days if you choose the free route. However, you can obtain your DUNs number in less than 24 hours by either purchasing one of its business credit builder programs or if you are a government contractor, government vendor, or grant recipient.

Now let’s review each of its business credit solutions and how they can help build company credit for your small business much faster than the traditional route of waiting for your creditors to report.

DUNs File Creator

Price $149

This product is ideal for you if you need to have a DUNs number issued right away. As soon as you purchase this product they will issue your number in 24 hours and you can have a DNB business file in their system within 5 business days. You have the ability to add extensive information on your file like company background information, operational information and financial statements. One of the drawbacks is that it does not include the ability to add trade references to your file. You will have to wait for vendors, creditors or suppliers to report their payment experience with you to Dun & Bradstreet. So if you are trying to build business credit history fast then this would not be the best choice for you because you have to wait until your suppliers report your payments.

* Tip – when you become a Business Credit Insider member we give you access to vendors, suppliers, and companies that report to DNB on a monthly basis for building small business credit.

DNBi Self Monitor Basic

Price $449

If you choose to purchase this product then most likely they will waive the DUNs File Creator fee so don’t hesitate to request it. This particular product is ideal for you if you already have existing trade references that you want to add to your file. This service allows you to submit up to 8 references over a period of 3 months for a total of 4 payment experiences to be added. They allow this extra cushion just in case they are unable to contact one of your references for payment experience verification.

Now if the price on this is a bit of stretch for you then you may want to take advantage of their monthly payment option. It costs $39 per month and requires a 3 month minimum term. Keep in mind that if you select this option you are only allowed to add 1 trade reference per quarter with the option to add more if you continue the service.

 *Tip – when you become a Business Credit Insider member we report your monthly membership payment to Dun & Bradstreet. Not only do we give you access to vendors, suppliers, and companies that report to DNB but we also help you build business credit history too!

If you decide to enroll in one of these programs or need some guidance regarding the status of your DNB report then call Tara Simone at Dun & Bradstreet. Let her know that Marco referred you and she will take good care of you. Her contact number is 610-882-6367 or email simoneT@DNB.com.

 Stay tuned for Business Credit Builder Part 2…

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

Some additional business credit reading…. 

These types of credit cards are specifically designed for businesses with no credit or less than perfect credit history. When you apply you are required to submit a security deposit that will establish an initial credit line. In most cases a minimum deposit of $500-$1,000 is required and once you begin using your card you will receive invoices like a standard unsecured business credit card.

As you pay your invoices your payments will get reported to the business credit bureaus. I always encourage my members to use a secured business credit card along with vendor credit lines because it will allow you establish a strong blend of account types on your files.

For example CSI offers a secured Business MasterCard that reports to Corporate Experian. They require a minimum of $1,000 security deposit but keep in mind that your deposit is only used to pay off the debt in the event that you default on making payments.

As soon as you receive your card you can start using it to make purchases for your business. When you charge a purchase just simply pay the invoice when it comes due. Now remember the whole purpose of using the card is to build credit so don’t be late on your payments. After six months you can request that your account be reviewed for a credit limit increase without requiring a larger security deposit.

Some other benefits of a secured business credit card include:

• Universal Acceptance
• Cash Back Programs
• Online Expense Management
• Easy Funding Options

Before you apply you will need to have your company’s business license, articles of incorporation, address verification, federal tax ID#, banking reference and general business information. You will also need to list authorized users and how many cards you are requesting.

You can send your security deposit via wire transfer and typical turnaround times take 7-10 business days. Keep in mind that before you select any secured business credit card make sure you read the terms and conditions completely and verify which business credit bureau they report to.

Another advantage to using secured business credit cards is the separation between your personal credit and business credit. In my opinion these types of business credit cards are ideal for every small business owner because it not only establishes business credit but also controls spending, eliminates personal liability and protects your personal credit files.

To start establishing  business credit with insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.  

As small business owners recover from the recession it’s hard to imagine that getting business credit can be simple. However, the largest use of capital from business to business is the use of vendor credit lines which happens to be the single largest source of small business lending in America today according to the SBA.

So what is vendor credit?

Vendor credit is when a company, like an office equipment supplier, allows your business to purchase products and pay for them at a later date. Typically the terms range from Net 15, Net 30, Net 60, Net 90, or even Net 120 payment terms. These vendor credit lines work like a charge card meaning that the balance must be paid in full on or prior to the due date. Rather than struggle with getting business loans from financial institutions vendor credit also known as trade credit is an excellent option for new and existing businesses.

The primary benefit to getting business financing with vendor credit lines is that it will provide your business with thousands of dollars in products and services it needs up front while allowing your business to defer the payments for later. This helps you conserve cash flow for more critical short term expenses your business may have. The flexible payment terms also allows your business plenty of time to pay the invoice when it comes due.

A second benefit is vendors report your positive payment experience to the business credit bureaus. The more vendors you are getting corporate credit and payment experience with the stronger the profile you will build. This alone can positively impact the size of the credit limit recommendation for your business which is determined by dun & bradstreet and publicly disclosed on your file. As a result getting a business credit card without a personal guarantee can be much easier for your company to obtain.

However, one of the biggest mistakes made by small business owners is assuming that every vendor reports their payment history to the bureaus. Currently there are over 500,000 vendors who extend lines of credit to businesses but less than 6,000 report your payment experience.

So if getting corporate credit to build business credit history is a must be sure to select vendors that report. Be sure to also ask what agency they report to and how often they report. You can verify this by inquiring with a vendor that you plan to apply with. If this sounds like too much work then I suggest joining my Business Credit Insiders Circle and gain access to our premium vendors, credit sources, and much more.

One of my favorite aspects to getting a business line of credit with a vendor is the minimal qualifications required for approval. In many cases an application only requires your business contact information, Federal Tax ID#, Dun & Bradstreet#, authorized name and signature and not your social security number or personal guarantee.

The specific vendors requesting only this information will pull a business report to base their approval which makes building business credit with trade suppliers much easier and more convenient compared to credit cards or loans. A prime example of one of these types of vendors is a company called Quill.

Quill offers a net 30 account and reports to Dun and Bradstreet.  Best of all they report your payment history every 30 days. For small orders you can get approved if your business has a listing on the 411 directories and a working website. New businesses can start out with smaller limits that will increase when you pay on time every month.

I also encourage every one of my client’s to join my Business Credit Insiders Circle. As a member they gain access to all the information, sources, videos, audios, and content not available to the general public. In addition each month we report their membership payments to Dun & Bradstreet!

As you can see getting business credit with vendor credit lines can be an ideal source to fund short term needs at the same time provide your business a way to build a strong file while avoiding the use of your personal credit and guarantee.

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insider’s Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insiders Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business 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 The Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.