Building Business Credit · Veteran Business Community

Building Business Credit

As I opened up another Business Banking account this week, it made me think of business credit. One of the things the Branch Manager was saying is that I could get a commercial loan without pulling my own credit, just the business credit, which is excellent.

Some info about Dun & Bradstreet (D&B)

The largest business credit bureau, D&B assigns a PAYDEX score (0-100) based on payment history. A score of 80+ indicates you typically pay on time or early.

PAYDEX Score: Payment-based (0-100)

D&B Rating: Overall creditworthiness assessment

Requires a D-U-N-S Number (free to obtain)

Experian Business

Experian provides an Intelliscore Plus (0-100) that predicts the likelihood of serious delinquency. They also offer a Financial Stability Risk Score.

Equifax Business

Equifax offers several scores including the Business Credit Risk Score (101-992) and Payment Index (0-100).

How to Build Business Credit

Step 1: Establish Your Business Entity (How to do step 1 can be found in the Free Training (Kickstarter Training) course here on the Veteran Business Community.

Incorporate or form an LLC

Get an EIN (Employer Identification Number)

Open a business bank account

Get a dedicated business phone number

Create a professional business address

Step 2: Get Your D-U-N-S Number

I also suggest going to Nav.com to check your credit.

Step 3: Establish Trade Lines

Work with vendors and suppliers that report to business credit bureaus. Start with easier-to-obtain accounts:

Office supply stores (Staples, Office Depot)

Shipping companies (UPS, FedEx)

Gas cards (Shell, BP)

Small vendor accounts in your industry

Step 4: Use Business Credit Cards Responsibly

Apply for business credit cards that report to business bureaus. Use them regularly and pay balances in full each month.

Step 5: Pay Bills Early or On Time

Payment history is the most important factor. Paying early can boost your PAYDEX score significantly.

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Learn how I built excellent credit in 4 months in the Build "Business Credit Course" under the Premium membership of $29/mo. You will also unlock all the other trainings valued at $2,800.

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Building Business Credit