| You do not have to spend a lot of money to | | | | Dun & Bradstreet remains the primary |
| establish a Business Credit Profile. A lot of | | | | source for reporting. |
| companies will tell you that you need their | | | | Here is a list of the top four: |
| services to establish credit. The cost can run | | | | - Dun & Bradstreet |
| anywhere from a few hundred dollars to a few | | | | - Experian Business |
| thousand dollars. Even Dun & Bradstreet will | | | | - Equifax Business |
| try to sell you their Credit Builder Program which | | | | - Business Credit USA Lastly, you must find |
| can cost a few hundred dollars. My question is | | | | companies that will establish credit for your |
| where is a small business owner, who is just | | | | business without using your personal information |
| starting out, going to get that kind of money? | | | | and then report the payment experiences to the |
| Well I have some good news for you; you can do | | | | bureaus. In order to properly build business credit, |
| it yourself! | | | | your business entity is going to need at least five |
| First you must understand exactly what a | | | | (5) trade references that have given you a trade |
| Corporate Profile is. In some ways, it is similar to | | | | account and report a favorable payment history |
| personal credit. In other ways, it's much different. | | | | to the Credit Reporting Agencies. By reporting the |
| Both personal and business profiles record | | | | information to the proper Agencies, they'll help |
| payment histories, loan information and loan | | | | you establish your Corporate Credit Score. |
| defaults. This is where the similarities end. A | | | | Three (3) major advantages of Establishing |
| Business Credit Report is usually kept under an | | | | Corporate Credit: |
| EIN (Employer Identification Number) rather than a | | | | - It gives you access to more funds - an |
| social security number. An EIN can be obtained for | | | | excellent rating will give you access to funds that |
| free from the IRS. It serves as a number to | | | | are likely to be beyond the scope of your |
| separate the business report from the personal | | | | personal credit. |
| profile and allows for the business to hire | | | | - It can save you money - A good business |
| employees. With a Corporate Report, additional | | | | score will help business owners lower the interest |
| information is kept on file, such as: | | | | they pay on loans and leases. |
| - The date the business was opened | | | | - Improved Business Image - A company with its |
| - Assets of the business | | | | own credit history has increased credibility and is |
| - Average profits of the business Secondly, you | | | | perceived to have a higher level of |
| must know who these Corporate Credit | | | | professionalism with the government and other |
| Reporting Agencies are. A number of Agencies | | | | businesses. Establishing Business Credit is a |
| have entered the market in the last decade, and | | | | process and if done correctly can be rewarding. |
| new ones continue to pop up, but Paydex from | | | | |