Commercial credit reports are to your business what your personal credit report is to your individual credit history. However, commercial credit reports go one step further. Along with telling lenders what your company’s finances look like and how reliable it is in meeting its obligations, anyone can access a business’ credit history. Many consumers will check on a company’s credit background to determine if they are reliable and trustworthy. Other businesses will likewise look for traits that make your business a good partner or resource. That makes a good credit rating even more important to your business than solid credit ratings are to you personally. Of course, how your credit report looks to lenders will be important to your business. Businesses always need a source of operating funds whether they are just starting or have been in business for decades. There is never a time a business owner can let down their guard regarding the way a commercial credit report makes their company look. Finding Your Commercial Credit Report Getting a copy of your commercial credit report is easy. There are plenty of places to order a copy. Just like with your personal credit report, it is always best to order a commercial credit report from several different resources to get the full picture of how your rating stands. The most popular business reporting agencies are Dun & Bradstreet, Equifax Business and Experian Business Credit. There are a dozen others, but you should at least get a report from the top three. It is a good idea to keep track of your report on a regular basis. The cheapest way to do that is to join a credit reporting service. They can help you in many ways, first alerting you to changes in your report and also helping you keep track of your payments and even getting accounts paid up from delinquent customers. To get a free commercial credit report you can do what any consumer would to get a personal one. Apply for credit and then if you get declined, request a free copy of the report the agency used to determine your denial. Of course, if your credit rating is good, you may not get turned down, but then you have another funding resource.

Business Credit Reports

Finding money is a constant source of concern for business owners. Unlike in their personal lives where they may only need to apply for a loan a few times in their life, such as for a car, a home or an expensive luxury item, owning a business means always finding new ways to finance and secure cash flow. Traditional Funding The most common place for a business owner to turn is a bank. In difficult economic times, however, banks are less likely to give out loans to new or small businesses. If a business owner is determined to get funding from a bank they must be experts at building corporate credit to prove their fundability. Small Business Association Another well-known place to get funding for business is the Small Business Association. Also known as the SBA, the Small Business Association does not actually give out loans. They do, however, have a massive amount of information on how to get loans for small business. Business owners can also apply for an SBA guaranteed loan. This means that the Small Business Association will back their loan with a bank. When a business owner then approaches the bank of their choice for a loan they are more likely to get the money they request. The Small Business Association applications are more complicated than a bank loan application, but they have representatives who can help business owners get through them. They also offer help in building corporate credit to strengthen the chances of getting approved. Operating Funds If money is needed for operating on a monthly basis, sometimes bank loans are not the best alternative. Instead, businesses can open vendor accounts or obtain corporate credit cards to get the money for small expenses that can be paid off monthly. Grants Grant money is often overlooked, but an excellent source of business funding. The money does not have to be paid back, and there is no interest accumulated. Applying for a grant is far different than applying for a loan. There is less pressure to prove business fundability. However, with a grant proposal a business owner has to prove that it meets the qualifications of the specific type of grant. Business owners applying for grants also have to show the money will be used for the specific purpose outlined in the proposal. If business owners have never applied for a grant before, it is better to hire a professional to prepare the proposal.

Business Credit Reports

Owning a business means always looking for ways to improve the cash flow and have the means to get things done whether it is expanding or meeting inventory needs. In the early stages of a business getting a loan for big items can be difficult and a new business owner needs to establish business credit in a hurry. You can work on building corporate credit to get your company in a solid position to apply for loans fairly quickly if you follow a few simple and easy steps. Get a Plan Draw up a complete business plan that shows everything about your business from the names and qualifications of all the principle employees including yourself as the owner right down to the expenses and projected income for the business over at least a five year period. There are many resources online where you can find out how to prepare a business plan. If you feel you need help, hire an expert who can create your business plan for you. Your business plan is the face of your business to prospective lenders. Open a Business Bank Account A checking account in your business’ name gives your company validity. It also shows a history of income as well as payment for regularly occurring expenses. You will need to prove your business’ existence when applying for a checking account to be held in the name of your company. You can do that by having the proper tax identification numbers and a DUNS number from Dun & Bradstreet, both are simple to obtain and can be applied for online at the IRS website and the Dun & Bradstreet site. Get a Credit History How do you get credit when you have no credit rating? You develop your business’ presence and get a credit history by first applying for vendor accounts at companies you buy from regularly. This can be office supply stores, food vendors who fill machines in your building, large and small equipment suppliers and anyone you purchase items to run your business. You can also develop a line of credit with manufacturers who supply you with inventory or create your inventory. Once you have established a good payment history with vendors you will have a credit rating to prove your reliability, but that’s not quite enough for most bank loans. It is enough to give you a chance at getting business credit cards, however. Those can give you a lot of spending power plus, many business credit cards offer perks that increase their value to your business as well. These simple steps will get you started building corporate credit and making your business a good prospect for funding.

Business Credit Asset, Business Credit Cards, Business Credit Reports

Paying bills on time and diligence to your book keeping methods are obvious ways of building commercial credit score and making sure your credit score remains in good standing. Before you can raise your score you have to develop it and know how to keep track of it. Finding Your Commercial Credit Score Unlike personal credit reports, your business credit score is a matter of public record. That is good news because it is much easier to obtain a business credit score. In fact, smart business owners check the credit rating of companies they are interested in doing business with as a matter of due diligence. Other companies will do that with you as well. The reason business scores are available to anyone who wants to see them is that it is understood that it is the best tool for judging the reliability of a company you want to work with or even buy from. Yes, consumers also check the credit rating of businesses they are interested in. The downside is that unlike personal credit there are no laws that demand credit agencies provide a free report to owners. You will also have to make sure you apply to the right reporting agency. There are three main business credit reporting agencies, and two of those also do personal credit reporting: Equifax and Experian. The business divisions of these two companies are Equifax Small Business Enterprise and Experian SmartBusinessReports™. There are a couple of ways to purchase credit reports. You can, of course buy each report individually. That can become quite expensive over time since it is necessary to check the reports often while building corporate credit and also when maintaining a solid credit rating. You can also purchase a membership with each of the reporting agencies to get reports when you need them. Some also offer credit management that will help you when repairing, maintaining or building corporate credit. Management will not only check your credit reports they will alert you to changes and possible fraud. You can also get additional services such as help with collecting on accounts payable. If you find yourself in a bind and need a report but can’t afford any of the paid options you can get a free report. To do this you will need to file an application with a business credit card account or vendor for an account and in this case, hope they turn you down. If you are turned down you’ll receive a letter just like you get if you are turned down for a personal credit or loan application that allows you to get a free copy of the report that was used to determine your eligibility.

Business Credit Reports business credit

Your business credit score is one of the most important elements of financial health and well-being. It determines the ability to get loans and funding when you need it, and also influences other business owners when considering working with you, or consumers thinking of buying from you. Creating a good credit report and protecting it should be one of the primary focuses of any business owner. What to Watch For on Your Business Credit Report It is important to continuously monitor your credit score to be sure it is accurate. Getting regular reports from at least the top three credit reporting agencies for businesses is the best way to keep track of what is going on with your score. The biggest business credit reporting agency is Dun & Bradstreet, followed by Experian Business Credit and Equifax Business Credit. Both Experian and Equifax are big names in personal credit reporting as well, so make sure you have the proper division. Make sure that any entries on your business credit report from all of the reporting agencies are accurate. Check for proper reporting of accounts you have and make sure there are no reports from creditors you do not do business with. What to Do to Make Sure Your Business Credit Report is Strong Paying your creditors on time every month is the only way to keep your credit report strong, but to do that you must first have creditors. Getting a credit score for your business means finding ways of developing creditor relationships. The easiest ones to start up are vendor accounts, and once you have several established you can look to open business credit cards, and then go on to bigger and bolder financing options like bank loans. The amount of credit you have does not affect your business credit report the way it does personal credit. Banks and other lenders understand that companies are always in need of more funding and credit. One aspect that will affect your report more than a personal rating is a bank score. Open a bank account in your business’ name and make regular deposits to it while paying your expenses. A healthy business credit report means a company that has financial power and the ability to obtain funding. That gives you the power to grow and expand for a bright future.

Business Credit Reports business credit reports

Getting a free business credit report isn’t just necessary if you are thinking of looking for financing. Good business health depends on a regular checkup of the financial stability and credit rating of your company. You can get free business credit reports from the three major reporting resources, Dun & Bradstreet (also known as D&B), and the business divisions of Experian and Equifax. Checking these sources regularly will help while building corporate credit and making sure your business fundability is good, but also makes sure that others that look into your report won’t find negative marks. Why it is Important to Keep Building Corporate Credit Everyone and anyone can check your company’s credit rating. It is easy to do and other businesses will usually check on your credit standing before agreeing to enter into transactions or work with you. Consumers, too, often check a company’s credit rating to see if they are a stable company that they can rely on and trust to be there if things go wrong. These reasons are every bit as important a reason for building corporate credit as getting money for operations and supplies are. In fact, even though big businesses often need regular infusions of cash to operate smoothly, smaller businesses are less likely to need loans or credit on a regular basis. However, small companies are even more likely to be checked out by other businesses and potential customers since there isn’t a long-term history of their company for those parties to rely on. Ways to Create a Better Credit Rating Building corporate credit is possible even for the smallest company. Having a bank account in good standing is a starting point. Make sure you have all of your legal issues in order with proper licensing and business numbers so you are easily identifiable. Open several vendor accounts and keep them in good standing to quickly raise your credit score. Credit cards are also a good way to increase your score and can often provide many additional benefits to help you save money on things like gasoline, flight purchases and hotel stays. Even though it may be tempting to just keep an eye on one of the major credit reporting agencies, it is important to watch all of them and make sure the reports are accurate. It is just as easy for a mistaken entry to be reported on a business account as it is on a personal account, and just as important to get it removed.

Business Credit Reports business credit reports

If you don’t, you could be the only one who doesn’t. Business credit rating scores are not private information. They are easily accessible by anyone, because they are valuable information when deciding whether or not to do business with you, purchase products or services from you—and of course, if you are loan worthy. While most new business owners immediately think of credit ratings when they need money, some are not aware that the impact is so broad. Not knowing where you stand with your business credit rating can ruin your business. The good news is, that it is just as easy for you to get your score as it is for others. There’s no hassle at all, and you can do it as often as you like. You should, in fact, do it every few months. Because business’ often need credit, vendor accounts and loans to keep moving in a fluid way, their credit scores can fluctuate quickly. Reading Your Business Credit Rating The numbers are far different when looking at a business credit report. Instead of a vast point system that goes from mid 300s to the 800s, a business credit report will show a range from 0 to 100. It’s simpler and easier to understand for most viewers. Anything above 70 is a very good score. Anything below 70 should be worked on. Where to Get Your Business Credit Score The most well-known credit reporting agency for businesses is Dun & Bradstreet. Along with credit reporting, they offer many benefits to business owners to help them with their scores. Just like with your personal credit, you should not limit your viewing to one single company, however. The numbers can vary slightly from one reporting agency to the other, and since the range is much tighter, little variations can be devastating. Dun & Bradstreet (also known as D&B) is just one of many reporting agencies, but the top three include it and Experian Small Business and Equifax Business. Keep in mind that the last two are the business divisions. Do not try to get your business credit rating through their individual credit reporting agencies.

Business Credit Reports