WHAT DUN AND BRADSTREET IS AND WHAT IT DOES

If you’re a new business owner then you may not have heard of Dun and Bradstreet yet. Dun and Bradstreet is one most known business credit bureau that there is. The company has been around for over 150 years and continues to thrive. There are other business credit report companies that exist as well however the one that you should be most familiar with is Dun and Bradstreet. To help you get good corporate credit you should keep track of your credit report and your paydex score. These are all important factors in helping you get a business loan.

Business credit is slightly different than personal credit on how it’s rated. One important factor that will affect your score is your ability to pay the bills on time. While paying lenders back on time is important as well many people overlook paying their normal bills on time. Dun and Bradstreet will receive the information about your company from the other companies. Based off of the given information they will give your company a score. For this reason you will need to keep your business and personal finances separate.

A paydex score can greatly affect your opportunity at getting a business loan. Dun and Bradstreet use the score in relation to the time it takes you to make a payment. If you were to make all of your payments on the date that they were due you would have a solid score of 80. While 80 is a respectable score, you will want to have a higher score. To obtain a higher score you will need to pay your bills ahead of time. You will also need to know that you can correct your late payments. If you have a thousand dollar payment that was late, then you will need to pay ten one-hundred dollar payments on time to fix your score. If this is all confusing you can find out more information on the Dun and Bradstreet website.

You may have also heard of the D-U-N-S number system that the company offers. This is a code that instantly will recognize your company. It’s used to help you obtain your credit report information. Using the resources that Dun and Bradstreet offers you can help solidify your corporate credit.

The best way to build your business credit is to keep an eye on your business credit report while having a line of credit. This will let you know if you are making your payments on time, ahead of time, or late and will allow you to fix it for the better. You should remember that not all companies will report your payments to Dun and Bradstreet or any other credit bureau however if you refuse to pay them then they will send it to a collection agency and then that information will get sent to the credit bureaus. You will need to avoid this at all costs as it will damage your company’s credit report and it’s chance at getting loans or lines of credit.

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