Forums: Discussions for entrepreneurs and small business.

When I was first looking for funding I didn’t realize that there was more then just a good business plan.  As I was told by the bank I don’t have the backing or the knowledge to get a loan at that particular time, I was stunned that they would turn me down and I just was unaware of all the little details that were needed.  

What I found was the banks like established companies rather then the new businesses and that even though there is an SBA loan; the banks don’t have to give you a loan. I also found that the SBA has what they call green, yellow, and red banks. Green being the best ones for new businesses to try and red banks are ones that have enough business and money that they just don’t need the small person’s loan.  

 

Another thing that I found is the banks not only do personal credit checks but they do D & B credit checks.

 

D & B was something that I never thought about.  Now I am looking at spending the $500 to get them to go to the 5 wholesalers I have done business with to get a credit rating established.

 

Does anyone have any background with this company and is it important that I establish myself with them (in the terms of spending money)? I know it is nickels and dimes in every direction but I want to minimize costs that are not needed, but they seem to be an important factor when it comes to my loan process.

 

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Rachael Theragood No one can make you feel inferior without your consent. ~~Eleanor Roosevelt~~

The company has a D & B profile. But we did not opt for the additional features that required a fee. And yet, I was still able to secure a few lines of credit as they checked because they checked the D & B profile. I would definately like to read from some one who has opted for the other paid services D & B offers.

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Procrastination is the assasin of oppurtunity

We are in the same boat, getting ready to pay D & B to build a profile for us. The next step after that is to apply for easy credit to build that profile, places like Radio Shack, Office Depot and Office Max and the Big Box Stores they all report to D & B and help you build that profile. It is money well spent if you have the time to build that profile. Have you had a personal DBA before? Close it out of your name and open it back up under your Corporation, it can give you a longer track record of being in business. There are lots of little steps to help build the profile, but it takes time.
Good Luck!

It would be a good idea if you are trying to start business credit and a business credit profile.
Other than that its not needed if you are a start up business..


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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Thank you all for your input.  I think for my business I will go ahead and pay the monies before I open my doors.  I know that banks, and some wholesalers will not give credit without prior D & B information.  I would rather be a bit safe then sorry in the end.

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Rachael Theragood No one can make you feel inferior without your consent. ~~Eleanor Roosevelt~~

I`ve had mixed results with D&B.  As one of my companies begin dealing with big companies we received requests from them to answer some information and we ended up paying nothing in order to get added.  However, on other companies I have been involved in we would have needed to pay in order to have a D&B report developed on us...

I`ve done a bit of reading up on this scenario.  The advice most commonly given was to first establish net-30 terms with a few suppliers.  In addition, open a credit card account in the name of the business and not your personal credit.  This will only work if you`ve created a separate entity such as incorporating or LLCing as such.

It`s good to use the credit card even if you pay it off monthly.  Most banks will give a low credit limit because the company`s credit is minimal in the early years of startup. 

One side-note I`ve verified to be true.  Experian has a business side of their credit bureau ratings just as the personal type.  It`s best to obtain an account and a D&B number.  Some applications ask for the D&B number.  Guess were D&B obtains their credit information? Experian business.

Good luck!


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Pay the money. I only have our credit cards showing on our DB and not on our personal scores. It is worth the money, and getting a "Paydex" score is a huge bonus for companies.  If you do not want "charges" on your PR, that get your DB up!

When you state your scores versus D&B, are you referring to your personal credit scores or your business scores?


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Hi I saw this commet you posted...

My question is in regards to the DBA. I filed my dba back in 2003 but i am just now begining to put all the puzzle pieces together (forming the llc etc.) So you say close the dba under my name and reopen under the corp? How does that work. Also it may prove the length of time the business has been in existence, but what about financial statements. (in my case there are none lol). Would it be odd for a 3 yr old bus to have no financial history?