Business Credit: The Essentials

1. Payment History: Timeliness of bill payment to suppliers and creditors is crucial. Late or missed payments can negatively impact your business credit score.
2. Credit Utilization Ratio: This is the amount of available business credit you are using. A high utilization rate can indicate potential financial distress and negatively affect the score.
3. Debt-to-Income Ratio: It measures the company’s ability to manage monthly payments and repay debts. A lower ratio is preferred as it indicates that the business is not overly reliant on borrowed money.
4. Company Size: Some scoring models consider the size of the company as a factor, under the assumption that larger companies have a more stable credit history.
5. Industry Risk: Certain industries are considered riskier than others. A business in a high-risk industry may have a lower credit score.
6. Public Records: The presence of bankruptcies, liens, and judgments can have a significant negative impact on a business credit score.
7. Length of Credit History: Similar to personal credit, a longer credit history can provide a more accurate picture of creditworthiness.

• Dun & Bradstreet’s PAYDEX Score: Ranges from 1 to 100, with scores over 80 considered good. It primarily measures a business's payment history.
• Experian’s Intelliscore Plus: Ranges from 1 to 100, and includes over 800 scoring models to assess the risk of doing business with a company.
• Equifax Business Credit Score: Combines payment history with public records, company size, and other performance metrics.
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 1, Establishing Business Credit:

• Business Entity Setup: We assist in setting up a business entity (like an LLC) that is separate from personal finances.
• EIN and D-U-N-S Number: We guide businesses in obtaining an Employer Identification Number (EIN) and a D-U-N-S number which are essential for building business credit.
• Business Credit File: We help businesses to open a business credit file with the major business credit bureaus.

2. Building Business Credit:

• Trade Lines: We advise on establishing trade lines with suppliers who report payments to business credit bureaus.
• Business Credit Cards: We assist in obtaining business credit cards that report to credit bureaus, helping to build credit history.
• Credit Utilization Management: We provide strategies to manage credit utilization effectively to maintain a strong business credit score.

3. Monitoring and Maintaining Business Credit:

• Regular Reviews: We offer services to monitor business credit reports regularly to ensure accuracy and to identify areas of improvement.
• Dispute Errors: We help in disputing any inaccuracies on the business credit report promptly.
• Strategic Advice: We provide ongoing strategic advice for maintaining and improving business credit, tailored to the business's specific financial situation.