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. 

Just recently FICO released data showing that over 25 percent of consumers now have a credit score of 599 or below. That’s a whopping 43 million people that are considered subprime and what’s even more startling is those numbers continue to climb.

Credit scores play such an integral role in our country’s credit system and more consumers need to be aware of how today’s financial decisions will impact tomorrow’s borrowing potential.

In FICO’s world ‘damage points’ are applied to a consumer’s credit score when there is evidence of financial hardship or patterns of risky behavior. Some ‘damage points’ can cause a minimal 10-20 point drop in your scores while others can downright cripple your chance of getting any credit because of a 200 point drop.

Now the real question that plagues consumers is what types of mistakes or patterns trigger ‘damage points’ and how can they go about avoiding the most common mistakes.

The closest thing to address this widespread confusion is by using FICO’s score simulator which basically allows you to see what type of drop or increase you will have on your credit score if you take certain actions.

While it does prove to be helpful it barely scratches the surface when you compare all the other scenarios that you may encounter.

To help you gain a better insight into FICO’s scoring model I have assembled some key tips and strategies that you may find useful.

Leverage your highest credit score

Find out what your credit scores are with Equifax, Transunion and Experian. Once you identify which score is the highest use it to your advantage when applying for credit.

For example, let’s suppose you have an Equifax score of 680 but only a 650 and 645 with the other two agencies. Apply for credit with a creditor that pulls from Equifax so you get the best available rates. It’s that simple!

Lower Overall Debt to Credit Utilization

You can lower your overall debt to credit utilization by paying down your balances and increasing your credit availability. By increasing your credit utilization you can raise your credit scores in a matter of weeks.

Avoid Excessive Inquiries

You can drop your credit score a few points with excessive credit report inquiries. Be sure to review what ‘hard inquiries’ are listed on your reports and take the necessary steps to remove unauthorized ones.

Dispute Inaccurate, Erroneous or Obsolete Information on Credit Reports

Review your credit files and if you uncover any information that is incorrect be sure to file a dispute with the consumer credit agency and repair your credit. A single derogatory item that is incorrect can cost you ‘damage points’ towards your credit score and may end up costing you thousands of dollars in unnecessary interest.

There are many other ways you can maximize your credit scores but one in particular that the majority of business owners need to pay close attention to is business debts reporting on their personal credit files.

This has a dramatic impact on your personal debt to credit utilization ratios along with a host of other factors that can hurt your chances of obtaining personal credit. It’s just smart business to separate your personal credit from business credit otherwise your scores will reflect an entirely different picture of you financially.

Ready to repair your 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 personal credit recovery services, 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 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. 

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. 

Out of the 88 negative rating factors that can hurt your credit score one in particular that I would like to cover in this post are inquiries.

In the credit scoring system inquiries are given two types of classifications one being ‘soft inquiries’ and the other ‘hard inquiries’. Let’s cover these two briefly:

Soft Inquiries

These inquiries do not affect your credit score so don’t be alarmed if you see a lot of these on your file.

There are three main types of credit checks that fall into this classification.

1. Personal – When you order your own credit reports or scores directly from the major consumer credit agencies or myFICO.
2. Promotional – Businesses that check your credit for promotional purposes use the data in order to solicit its products or services such as those pre approved credit card offers you find in your mailbox.
3. Procedural – As part of its procedure a company or lender that you currently have an established account with may periodically check your credit in order to either extend additional credit or look for signs of financial distress.

Hard Inquiries

A hard inquiry is what negatively impacts your score and according to myFICO one additional hard inquiry for some people may take up to but not more than 5 points off a credit score!

This credit check occurs when a creditor pulls your report as a result of you applying for credit. One important thing to remember is when you apply for credit with multiple lenders in order to search for the best rate on a mortgage, auto or student loan FICO will consider all these inquiries within a 30 day period to count as a single inquiry.

Unfortunately there’s no way to determine what impact a hard inquiry will have because it varies from consumer to consumer and is based on different credit histories.

Even though hard inquiries can stay on your credit files for two years FICO’s scoring model only factors in those inquiries from the last 12 months. So be selective where you apply for credit because too many recent hard inquires can signal a red flag with creditors.

If you identify any unauthorized hard inquiries on your credit file then you will need to prepare an inquiry dispute letter and submit it to both the consumer credit agency and creditor. This is different than disputing information like a late payment and currently none of the consumer credit agencies offer an online dispute option for credit report inquiries.

I also suggest you send the letter via Certified Mail Return Receipt Requested so you can properly track the dispute submission and response time.

Remember the Fair Credit Reporting Act was put in place to protect you from unfair credit reporting and this includes the use of unauthorized hard inquiries.

Ready to improve your 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 personal credit recovery services, 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 builder 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. 

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. 

In a press release today US Bank announced the launch of a new online payment management tool called ScoreBoard for its US Bank Visa small business credit cardholders.

In an effort to empower business owners with better management and decision making tools it can quite possibly set a new standard in services available to business credit cardholders.

ScoreBoard is an online tool that cardholders can access via their U.S. Bank Internet Banking Account and it provides two main features.

First, you can monitor all of your company’s credit card spending using various reporting formats. This can help you track spending patterns on an individual cardholder or on a company wide basis. In my opinion this is a good step towards making better sound financial decisions for your company.

Second, if you have a U.S. Bank Merchant Account you have the ability to compare your processing volume with the volume of others in your industry including number of transactions and average ticket sales. This can be very useful data for your company in more ways than you can imagine.

As you can see this type of tool can give your business that extra edge it needs in today’s competitive economy.  

Here is a brief overview of the press release:

MINNEAPOLIS, Jul 22, 2010 (BUSINESS WIRE) — U.S. Bank is helping small businesses make smarter decisions about the financial operations of their business with an online reporting tool, called ScoreBoard. The tool provides trending and reporting data that allows customers to monitor their own credit card spending and also compare their card sales data to industry trends.

“ScoreBoard is unique because it gives our small business customers the ability to monitor their own spending and insight into how their sales trends compare to similar merchants in their business category,” said Pam Joseph, U.S. Bancorp Payment Services vice chair. “For our customers who have a U.S. Bank credit card and merchant account, the tool provides a comprehensive view of their business trends.”

Business owners who have a U.S. Bank-issued small business credit card can access ScoreBoard through their existing Internet Banking platform. They can use ScoreBoard to:

– Monitor card spending by an individual employee cardholder or for their entire business.

– Review transactions over various time periods and categories, such as travel, office supplies, home improvement and gas purchases.

– Examine their purchase activity by volume, average ticket price or merchant name.

Merchants who process their payments through U.S. Bank Merchant Services can use ScoreBoard to:

– Review sales by volume, average ticket price, or payment type over various time periods.

– Determine their growth rate for card sales over a selected period of time.

– Benchmark their card sales performance against other small businesses in their industry or geographic area by looking at ScoreBoard’s overview of consumer spending trends.

You can read the full US Bank press release titled U.S. Bank Introduces ScoreBoard, an Online Payment Management Tool for Small Business on U.S. Bank’s web site.

SOURCE U.S.Bank

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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.