SBA TEAM UP WITH DUN AND BRADSTREET

Two of the biggest companies involved with the growing of small businesses, Dun and Bradstreet and the Small Business Administration (SBA), are teaming up to provided information to small business owners. The step by step process that they have assembled teaches small business owners how to build and manage their credit, usually the most difficult process when starting up a business.

Dun and Bradstreet is the largest provider for business credit information. Once two separate companies, Dun and Bradstreet have a merged data base holding over 70 million company records internationally. They are the inventors of the D-U-N-S number, a significant credit identification number assigned to each business, and they use the PAYDEX system as one of their methods for determining corporate credit scores.

The Small Business Administration is dedicated to helping small business owner get started with their business. They teach new owners how to build and manage small business credit so that their business has a solid foundation to build on. The Small Business Administration recognizes how fragile companies are in their first years, and does the most they can to aid small business owners.

The five step system they came up with is a simple plan to help anyone build business credit. Up until now many people have been convinced that the only way they can get a start up loan is to have a fantastic personal credit score and assets to use as personal guarantees. Although it is best to get your own credit in line first, you don’t have to have a great personal score to start your own business.

The first step is to get your own D-U-N-S number. This creates your credit file within Dun and Bradstreet so that companies have somewhere to put their information when they report your payments. A D-U-N-S number is internationally recognized, so data bases all over the world will know how to access your information.

The second step is to start building your small business credit. This involves getting some sort of business credit line from a loaning company. More often than not, the easiest way to start your credit is by applying for a corporate credit card. A credit card will help you keep your finances separate, give you quarterly and yearly statements on your spending, give you business related rewards, and help build your corporate credit all at the same time.

After you receive your credit card or loan you need to start making payments on it. Just having the credit card is not enough. Use it to fill in the gaps during low times for your business. That way you can pay the difference off over time without worrying about spending too much. All of your payments will be reported to the business credit companies and will help build business credit over time.

While you’re waiting for your business credit line to expand, monitor all of the transactions to make sure they are accurate. It’s also important to know the credit status of any companies that you work with. If they have good credit scores it is likely that they are trust worthy companies that will provide you with good business.

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