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37 Replies Last post: Apr 28, 2009 3:06 PM by CommunityTeam

Event: How to increase your business credit score

May 1, 2009 9:55 AM

Click to view CommunityTeam's profile sboc CommunityTeam 132 posts since
Jul 27, 2007
You've got a great idea and the capital and know-how to implement it. But entrepreneurial success also depends on something many small-business owners don't pay enough attention to: your business credit score.

The current economic climate makes it more important than ever for small-business owners to understand their business credit score. A strong business credit score and up-to-date information on the business credit report can help small-business owners access additional capital and even gain customers during difficult times.

Experian will be on SBOC to answer questions like:

  • What will a business credit report tell you?
  • What can impact a business credit score?
  • How can monitoring your business credit score help your business today?
  • What are the advantages for maintaining business credit separate from personal credit?
  • What steps can be taken to protect and improve your business credit score?

Experian's Business Information Services enables organizations to make better decisions through each phase of the Customer Life Cycle. Its business database provides verified information on U.S. companies, including the industry's most extensive data on small businesses. Experian^®^ leverages more than 30 years' data management experience to provide market-leading blended risk products and services.

This interactive session will be led by executives from Experian's Business Information Services group:

Allen Anderson
President, Business Information Services

Adam Fingersh

Vice President, Strategy and Innovation


Post a question now, and then join us on April 28 at 2:00 p.m. EST for a response. Or join us during the event and post a question. Experian will try to answer as many questions as possible, but they may not get to all of them. Note, you do not need to register for the event. You simply need to be a member of SBOC to post a question. If you don't have a user ID, join now, it's free.

Experian will not be able to comment on other credit scoring companies and their policies, nor will feedback be provided to specific credit scores. So, please do not post your personal or business credit score on this public forum. For your information protection, these type of posts will be removed.

To learn more about your business credit report, visit http://www.businesscreditfacts.com/.

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Click to view brunoeisenhow's profile Start-up brunoeisenhow 1 posts since
Apr 2, 2009
1. Re: Event Apr. 28: Your business credit score Apr 2, 2009 10:07 PM
I am a new business owner and would just like to know how to get my business registered to obtain or start a credit score or rating. Also is it good to do just the Dun and brad thing or both that and the experian?
Click to view ilyab0dner's profile Mogul ilyab0dner 66 posts since
Aug 27, 2008
2. Re: Event Apr. 28: Your business credit score Apr 10, 2009 9:23 AM
A credit card can help with your business credit score. Not just any 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.


Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.


Good luck,


Ilya Bodner

Small Business Owner

Initial Underwriting Group

Click to view Howard's profile Mogul Howard 85 posts since
Jul 29, 2008
3. Re: Event Apr. 28: Your business credit score Apr 10, 2009 6:53 PM
What makes up a business credit score vs. personal credit score?
Click to view TIRESPLUS's profile Start-up TIRESPLUS 1 posts since
Apr 15, 2009
4. Re: Event Apr. 28: Your business credit score Apr 15, 2009 1:19 PM
I have been in busisness for ten years now
How can I improve my busisness credit score?
Click to view CommunityTeam's profile sboc CommunityTeam 132 posts since
Jul 27, 2007
5. Re: Event Apr. 28: Your business credit score Apr 16, 2009 6:38 PM

Questions about your business credit score? Join us for the event with Experian. We are collecting questions in advance, so if you have a question post now, by simply hitting reply.
Click to view mfh4tots's profile Professional mfh4tots 2 posts since
Apr 6, 2009
6. Re: Event Apr. 28: Your business credit score Apr 16, 2009 10:10 PM
in response to: CommunityTeam
Where do I go to request my business credit report and score? I have a small business for about four years and it never accured to me to check for my business score.
Click to view tomgaz's profile Mogul tomgaz 17 posts since
Jan 9, 2009
7. Re: Event Apr. 28: Your business credit score Apr 19, 2009 2:40 PM
in response to: ilyab0dner

Ilya,
I appreciate your comments but my question is this. Other than the Home Depot Mastercard business card that's available without a PG do you really think there are multiple lenders out there who will offer visa/mc business credit cards without a PG? If you mean vendor lines of credit that don't have visa/mc option then of course there are many options but I wouldn't consider those to be business credit cards.


I'm not sure that I agree with you that a business credit card that requires a PG is not a "true" business credit card but we can probably just have a difference in opinion on that one. Unless you're running a multi-million dollar business I don't think it's very realistic to think there are lots of lenders who will issue their business cards without the PG. I would love to be proven wrong on this one but I do agree with you that if the goal is to get the credit card to help build a D&B paydex score then that's usually not going to work. Very few business credit cards report to D&B.


Perhaps I misunderstood you but please clarify if you know of multiple lenders who are currently offering business credit cards without PG's.

Thanks Ilya. I certainly hope I'm wrong on this one.

Click to view Menston's profile Start-up Menston 1 posts since
Apr 27, 2009
8. Re: Event Apr. 28: Your business credit score Apr 27, 2009 10:44 PM

Meston is top10 refill cartridge manufacturer in China, I take part in small business today and would like to find some US buyers here.How can a fresh member raise the credit score?And how can I find the business partners
Click to view antiques4me's profile Mogul antiques4me 22 posts since
Feb 19, 2009
9. Re: Event Apr. 28: Your business credit score Apr 28, 2009 9:40 AM
I am thinking about partnering with another company and am concerned about their financial stability.

Is it possible for me to order a business credit report on this private company? Is this information public? If so, what information do I need to obtain or provide to order it?
Click to view Experian's profile Authority Experian 17 posts since
Apr 23, 2009
10. Re: Event Apr. 28: Your business credit score Apr 28, 2009 2:01 PM

Welcome to today's forum! Before taking questions, here is a little more
information about Experian and its experience with business credit reporting.


Experian® has been doing business credit reporting and scoring for
more than 30 years. In addition to business credit reports and scores,
Experian also offers commercial portfolio management tools,
commercial fraud tools and collections tools.

Experian holds more demographic and credit information on
individuals and businesses than any other company in the world,
providing power and insight to better understand customer and
prospect needs. We maintain credit information on approximately 215
million U.S. consumers and more than 27 million public and private
U.S. businesses.

Click to view CommunityTeam's profile sboc CommunityTeam 132 posts since
Jul 27, 2007
11. Re: Event Apr. 28: Your business credit score Apr 28, 2009 1:58 PM
Community - please welcome Experian to SBOC. Experian will be with us until 3:00PM ET.

If you have a question, simply login to you member account and hit reply. Please note that the event is moderated so you may not see your question post immediately. Experian will try to answer as many questions as possible but may not get to all of them. Also, don't forget to refresh your browsers so you can see Experian's latest response!
Click to view Experian's profile Authority Experian 17 posts since
Apr 23, 2009
12. Re: Event Apr. 28: Your business credit score Apr 28, 2009 2:04 PM
in response to: brunoeisenhow

Brunoisenhow,


Experian requires minimum information to generate a business credit
report and score. If a business doesn't meet the requirements, a credit
report and score are not generated. Minimum information is at least
one tradeline and/or one demographic element.

You can search Experian's database to find out if your business has a
credit profile by going to http://www.smartbusinessreports.com. You
don't have to be registered to locate a company in our database.
Nonmembers interested in purchasing a report automatically will be
directed to register.

Click to view Experian's profile Authority Experian 17 posts since
Apr 23, 2009
13. Re: Event Apr. 28: Your business credit score Apr 28, 2009 2:07 PM
in response to: ilyab0dner

Ilya and Tomgaz,


It's true that many small-business owners fail to separate their business
expenses from their personal expenses. The credit card used to take the
family out to dinner also gets used to gas up a company vehicle or to pay for
supplies used by the business. Half of all small businesses use some form of
personal credit to finance their businesses.

However, the weakness of relying solely on personal credit is clear. If your
business ever becomes at risk, your personal credit score becomes at risk as
well.

Additionally, many creditors have begun moving away from relying on
personal credit alone when judging the financial health of the owner's small
business, as personal credit does not ideally predict future business behavior.
Instead, many creditors have begun taking advantage of new blended
commercial scoring tools that integrate both personal and business credit
attributes to predict small-business risk.

Click to view Experian's profile Authority Experian 17 posts since
Apr 23, 2009
14. Re: Event Apr. 28: Your business credit score Apr 28, 2009 2:09 PM
in response to: Howard

Howard,


The score model used to determine business credit is much like the score model
used to determine personal credit. However, while a personal credit score can
range from 350 to 850, a business credit score ranges from 0 to 100.


Don't assume that your favorable personal credit score will be enough
to secure a good business credit score. While lenders and vendors
may initially consider your personal credit history, once your business
pays its first bill, it will begin building its own credit history.

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