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Why Establish Business Credit
According to Dun & Bradstreet, a strong business credit profile can help your small business by:
- "Obtaining better interest rates and credit terms from banks and lenders"
- "Increasing the likelihood of buying on credit from other businesses"
- "Lowering your workers' compensation premiums from insurance companies"
- "Making it easy for potential business partners to completely assess the risk of doing business with you"
Click Here to Hear how others obtain financing through business credit
An incomplete credit profile with Dun & Bradstreet or simply not having a business credit file can make your small business appear unstable when in fact may be financially sound. The appearance of instability from the lack of strong business credit can cost you in sales and money.
A true business credit card
A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are. When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own. |
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Why is Paydex so Important?
The Paydex Score is the business credit score equivalent to your personal FICO score.
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Example Approval Letter
$18,000 approval with a Bank without Personal Credit (FICO) or a Personal Guarantee.
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Small Business Loans
A business has the ability to build a credit score for itself that is not associated with personal credit.
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Business Credit Card
Payment history is tracked by a Paydex Score.
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Personal vs. Business
You have a fabulous small business idea, but you need a business loan.
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Small Business Accounts
Have an account for a rainy day.
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