Guide to Building/Checking a Business Credit Rating

An established credit rating is crucial for growing a small business
By Daniel Kehrer, Work.com Editor
Any business that plans to seek loans, lease equipment, establish partnerships, accept credit cards or buy inventory and materials should have a strong credit profile. You'll need to:

1. Get listed with key credit profiling firms.
2. Build, maintain and update your business credit profile.
3. Check credit profiles of customers.

Action Steps
The best contacts and resources to help you get it done

Obtain a DUNS number and get listed with D&B
If someone wants to check your creditworthiness they'll often look first to D&B. A DUNS number from D&B is the industry standard for business listings. Getting one puts you in D&B's database and lets you use D&B as a credit reference.
I recommend: Apply for a DUNS number and build your business credit file at D&B Small Business Solutions. CreditBuilder lets you create a complete credit file from the ground up. Update your record anytime with eUpdate.

Check your file or others
For small, growing companies - especially those doing business with large companies or government entities - a positive credit report is vital. Knowing what's in your file is important since missing or incorrect info can hurt you. And if you grant credit to others, you'll want to know their credit history.
I recommend: Review the business credit solutions offered by the major credit bureaus: Experian, Equifax, and TransUnion. For instant business credit reports online visit Business Reports USA, an Experian affiliate.

Shortcut: Services to help you build business credit
A business credit consulting service can help new business owners separate personal and business credit histories and establish separate business credit.
I recommend: Business Credit Services can help.

High-Volume, low-cost reports
To confirm information on new clients, make low-risk, low-dollar credit decisions, pre-qualify prospects or even generate sales leads, you'll need a subscription credit report service offering unlimited access to data on millions of businesses.
I recommend: Credit.net, a division of database giant InfoUSA, offers low cost solutions for small business.

International credit reports
Doing business outside the U.S.? Accurate and reliable information about the creditworthiness of overseas clients is critical.
I recommend: Get international credit reports here.

Tips & Tactics
Helpful advice for making the most of this Guide

• You can't build business credit separate from personal credit if you are a sole proprietorship. You'll need to incorporate or become an LLC.
• To help build your credit file, obtain a small loan, a credit line and a couple of business credit cards, and pay them off on time without fail.
• Use suppliers and vendors who will report payment your on-time payment record to credit agencies. To find out if they do this, ask.
• Too many inquiries into your credit profile can count against you, so limit the number of loan, card and other credit applications you file.