How to build corporate Credit for your business What is a D& B Profile & Paydex
Did you know that most people you ask would not be familiar with Dun & Bradstreet much less the opportunity to build corporate credit? The history of D&B goes back to 1841 when an enterprising American businessman named Lewis Tappan began providing information to other merchants to assist them in their business decision-making process.
As a former Dun & Bradstreet senior credit analyst I can tell you I have been asked a million different questions about D& B from business owners. I will try to get to the point by explaining there services and how they can change you're borrowing power as a corporation.
Business owners, who know and understand the D&B credit reporting process, welcome D & B. Owners will give the correct information about their business. This owner has been informed early on by the D&B analyst about how to build business credit successfully.
Most individuals or small businesses have not heard of a Duns number or building corporate credit due to the lack of effort or man power it would take to train thousands of businesses around the world. It is left up to the business owner to search out for this information and plan for his or her business future.
As your business ages & credit requirements increase, venders and banks etc will call on Dun & Bradstreet for validation.
Knowledge is as good as the person or object delivering the information, would you agree? D&B makes money selling information to banks, vender's, insurance agencies, you name it, and they find a market. The more inquires from businesses about your business means more money - more attention from D&B about you file right, Right!
Here is the problem initially; Small businesses or start up businesses use very few venders initially that require validation from a credit reporting agency. Meaning, with few inquires from paying venders your business file is not worth very much to D& B, so do not expect a lot of attention. I am sure in the big picture of things your business is considered valuable for Dun & Bradstreet considering they possibly have the worlds largest data base of business information.
Note : Venders use validation resources like D & B to consider credit. When this happens an inquiry is created, if the reporting agency is Dun & Bradstreet they will provide the vender with information about your business. You have to take action and build your own D& B file. Will explain in more detail later how to do this.
If your business has a file with few inquires, the chances are the file is managed or up dated annually by an entry level credit analyst that processes and validates hundreds of small business files every month. There is no way you are going to get the information or attention you need for building corporate credit from that analyst.
As a small business owner or entrepreneur as a rule, the responsibility falls on the owner to establish his/her Duns file number for the business. If you are not sure if you have a file Call Dun & Bradstreet directly 1 888 814 1435 or visit D&B's website dnb.com,
Should you call, ask for a business analyst to help you with finding your business Duns Number.
If your business has a D& B file number, great you are on the right track, start building a corporate credit file. If you do not have a D&B number ask them to start a business file for you. It should be free of charge. They will suggest upgrading your file for a charge & additional services, before doing so wait for a day or two, learn more about what they are offering to make a decision. You may not need all of their services.
D& B is a great company to work for, with an incredible history of success. For the purpose of business credit they are the best in the business in addition to helping build your company credit profile.
Establish ELOC's Equity Lines of Credit before you need them. It costs you nothing to plan, prepare and establish early.
Should you need funding or ELOC's for your business later, it will be confusing for deciding how corporate credit or business financing works when rushed to meet the needs of a growing business. You will need assistance - just determining "who can & who can not" assist is problem enough, let a lone getting financing.
The cost of financing will vary from lender to lender when you search out corporate credit consultants or service providers in this business. You will find that most do not have the training or experience to get financing, much less the business experience to determine additional finance options.
Find your self a good financial business consultant or service provider early with business financing experience- he or she can be worth their wait in gold to your business.
Author
Wm Cole Smith -
I will be adding additional articles on this subject for you to get a better understanding about building corporate credit for you business. It is perfectly legal to establish corporate credit, add guarantors, or buy shelf companies. Just do it the right way.
Part 2: Building a Dun & Bradstreet Corporate Credit file for your business. How & What information you should give initially?
Why do you need a Duns & Bradstreet profile? A D&B number is like having a personal social security number for your business. This file will stay with the business for as long as the company is active doing business and long after it is gone.
Part 3: How to establish a business Paydex Score?
Part 4: Corporate Credit -How to add trade lines to your business.
Part 5: Will Corporate Credit effect My Personal Credit?
Part 6: Finding the right Consultant for Corporate Credit?
More to follow
Have a terrific day & All the success for you business dreams
Wm Cole Smith
eloc.com - All Rights Reserved. Copyright 2008.
Entreprenuer/Business Consultant
email: cole@eloc.com
Service Provider - Located in Irvine CA.
Entrepreneur/consultant - business owner over the last 19 years, formerly Dun & Bradstreet Senior Analyst.... Aged Corporations & Corporate Credit Lender - Broker. Financing, funding, ELOC's are a necessity to the survival of a business.
For more information visit eloc.net an register our Free monthly newsletter & ebook up dates for the "Keep it Simple" Digital Ebook series for Entrepreneurs. Author Wm Cole Smith - email: cole@eloc.com
Established in 1995, incorporated 2002 All Right Reserved Copyright 2008.
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