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The Truth About Small-Business Credit
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Article 3: Get Your Business Credit In Order
When you ask to borrow money from a bank, apply for a credit card, or ask for extended terms from your vendors, your potential creditor will look at your personal and business credit ratings.
Your personal credit rating is important because creditors know they will need to pursue you for their money if your business doesn’t pay what’s due. Your business credit standing is also important because creditors want to know if your business has lived up to its agreements.
Better credit ratings mean you are able to obtain money at lower interest rates. To avoid unpleasant surprises when dealing with creditors, you should periodically check your business’s credit rating with these reporting companies:
D&B
At the Web site, click “Solutions and Services for Small Business Owners.”
With its professed database of more than 100 million companies, D&B is the most common resource for businesses seeking information on other businesses. Prices range from $30 to $150 per report depending on the depth of information required.
“D&B is proactive in going after businesses to update financial information,” says Mary Adams, principal of Trek Consulting in Winchester, Mass. “That’s their business, and they do a good job.” Equifax
Click the “Learn More” button under “Grant Credit to Small Businesses.” This organization offers a “Small Business Credit Report” along with related services. Prices, quoted on an individual basis, depend on data required. Experian
Experian sells credit reports at this site for $24.95. You can also monitor your own business credit standing by subscribing to “Credit Insure” from Experian at a cost of $12.95 per month or $99 per year for unlimited access to your business credit report.
You should contact the credit reporting companies concerning any errors found on your business credit report. Mistakes do happen.
“Companies with similar names often get confused by the bureaus,” says D. Brent Wells, a certified creditors rights specialist and president of Wells & Cuellar, a Houston-based law firm that helps businesses design efficient credit programs.
“Also, people with a series of businesses often find that their personal credit issues get linked to all of the business reports. By this mechanism, one old failed company may get linked to a new company that is doing great.”
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