Build Vendor and Cash Lines of Credit. After a credit file is established, the business has the opportunity to build a credit history by working with credit and financial institutions who report to D&B®. Approximately 10% of all credit and lending institutions report to D&B®.
Once compliance is established, then an actual business credit file is created. The file establishes a unique profile with D&B®, Corporate Experian® and Corporate Equifax® to facilitate the tracking of credit history and the development of a business credit score.
Access to different lending options for your qualified. As you improve personally and at a business level, you will qualify for more options. The options available to you are based upon the 4 C’s of credit; Credit (personal), Credit (business), Collateral and Cash Flow.
You must first complete a compliance review within the business credit bureaus. If you build business credit with vendors without your company being in compliance it may be “red flagged” by the business credit bureaus and they are very difficult to change or update.
Developing business credit is now more important than ever to your financial health. Read More …
In the business credit world there are three major business credit agencies: Dun & Bradstreet®, Corporate Experian®, and Corporate Equifax®. Dun & Bradstreet® is the 900-pound gorilla in the business credit world. This is the MOST IMPORTANT one to make sure you establish properly for your business. Unlike personal credit (where if you follow the correct steps to write letters to the personal credit agencies to request information to be verified and if the creditors do not verify the information, it has to be removed by law), the business credit bureaus do not fall under the same set of rules and it is very difficult to update records. Read More …
To protect consumers, the Fair Credit Reporting Act requires that in addition to being accurate, complete and up to date – EVERY item in your personal credit report must also be VERIFIABLE. This means that even if your credit did take a real hit during the economic downturn, the derogatory item MUST be removed from your credit report if it can’t be verified. Read More …
There’s a paradox out there about personal credit and its impact on your business that can seem contradictory at first. It IS true that it’s important to keep your business and personal credit records separate. Business credit is tracked and reported very differently from personal credit and there are also important tax, compliance and cash management implications to consider. Read More …
In today’s economy it’s more important than ever to understand and implement funding fundamentals to help keep your business up and running. Even though the network marketing industry can be a very high profit, low overhead type of business, many times this isn’t the reality for those who are just getting started. Most are investing a lot of time and money with systems, training, marketing and buying leads to grow their organization. Read More …
Why Your Business MUST Build Business Credit! Let’s face it – the odds are against you! The SBA reports that more than 50% of all small businesses FAIL within the first year. The main reasons they cite are undercapitalization and lack of cash flow management. For our purposes here, what they mean by “lack Read More …
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