ForumsFinancing Tips

Thank you for the info BizinSoCal, $329 is not a bad deal if it helps you get started with the D&B number and credit profile, I will try this route before I apply for more credit.

Thank you again

Roland,

If you decide to call DNB for the Credit Builder Program, I believe they have a promotional price of $296.

Good luck,

Reigneer

Paying money to "build your business credit" is a WASTE OF MONEY. Lenders will pull your personal credit if you apply for a loan. The only people who benfit from these services are the ones who sell them.

In 10 years as a lender, I have never ever made a loan decision based on a D&B report. BUSINESS CREDIT IS IRRELEVANT IN 99% OF CASES. Your ability to get a loan is much more dependant on your personal credit history. Don't buy into the hype of these used car salesmen who tell you that you need to pay $329 to build good business credit. You can't pay for good credit; you build it by demonstrating a history of responsible debt management.

Hi Roland,

I just wanted to clear things up. NoBullFunding made a good point. If you are looking for a LOAN, your personal credit as the business owner will be reviewed (it doesn't matter if you are applying for your business). If you are looking for a LINE OF CREDIT for your BUSINESS (not personal), a business credit profile will be reviewed. DNB rating goes up (same as a FICO for individuals) when you pay your debt on time. So, having a good business credit will take time. Where to start building a BUSINESS LINE OF CREDIT (let's say a $500 line at Staples)? You can go ahead and ask Staples why they did not approve your BUSINESS LINE OF CREDIT since your PERSONAL CREDIT is good. I think it's because using your EIN, they were not able to review a business credit profile. Had you used your SSN to apply, then you would have been approved. But then, you wouldn't be building your business credit... you'd still be building your personal credit.

Just a note: I am in no way affiliated with DNB nor any company that provides service to obtain DNB rating. My reference to you is the direct contact info for a DNB representative with whom I spoke. She explained how a business credit profile is created. It is mainly making sure your business is legitimate (correct business address, phones being answered in a professional manner, no liens or lawsuits against the business, etc.) This will allow Staples credit review department to determine if it is okay for them to open a $500 line of credit (maybe $250, but it would be enough to start building your business credit). In most cases, a business LOAN is a LOT more than $500; therefore, lenders would want to see your personal credit to make sure they are lending to a qualified individual.

I hope I have cleared things up. If you have any questions, please feel free to contact me. You can check my profile for my contact info.

Again, good luck.

Best regards,

Reigneer

Any time you apply for credit that of a material dollar amount, a lender will check your personal credit. As far as what the nice lady at D&B was advising, let's not forget that its in their best interest for people to think that a D&B score matter. The truth is that D&B score DOES NOT MATTER. Real lenders don't depend on them at all because of the scarcity of information that they have on most small businesses.

NoBullFunding and bmt2008,

Good input. But, if you look at what Roland wrote when he applied at Staples, he used the business EIN. There is no way Staples can review his personal credit without an SSN. Staples had to make a decision based on what they can find out with the EIN. In Roland's case, not much.

As bmt2008 pointed out, suppliers can approve trade credit lines based on business credit rating. Again, in Roland's case, a Staples $500 or $250 credit is similar to a supplier's trade credit since Staples will provide office supplies to Roland's business. Gasoline stations can also provide a similar line of credit for his business.

Keep in mind these are not business loans. They are LOW LIMIT "suppliers" trade credit lines that can be obtained by using a business EIN and without an SSN. I believe this is what Roland is trying to establish. That said, I wouldn't recommend spending $2500 to build a business credit profile. The $296 DNB charges is more reasonable and COULD be tax deductible (disclaimer: I am not a CPA nor am I giving tax advice. Please consult with your CPA / Accountant before making a decision).

Have a great weekend.

Reigneer