Forums: Discussions for entrepreneurs and small business.

Research www.creditboards.com  . 

There are a lot of companies that do not report to the D&B.  I would advise you to buy the Credit Builder program, and you can submit your vendors.  You have to make sure your vendors respond, and are rated. 

It is worth every penny to get a paydex score, and it takes some work to get your profile up to date.  I work with 

campbelld@dnb.com campbelld@dnb.com

I just think she is amazing, and she has gone the extra mile for my company, and my friends. 

I will email her and tell her I have posted her information on this website.

You do not know me...but she has put up with me, and I know she can help you!

I found it is easy to to find companies that have D&B number to give you a credit rating. It does not have to be large vendor, or it could be vendor like your hosting company given you the credit rating.

Try to have your hosting company to report a credit rating with you. If the hosting company does business with you, they have you on some sort of billing cycle.

Q: Which banks would these be?
A: Use http://www.bankrate.com for both the best reported interest rates and reviews.  The only two I would consider are Capital One or US Bank.  These banks are known for working with small businesses.

Q: How do you go about doing this when most banks ask for your personal guarantee?
A: All banks will require your personal guarantee in the first years of a business credit life.  However, even though you’ll have to use a personal guarantee keep in mind your business is establishing and creating its own credit record. 

It’s similar to my son.  He’s 17 and wants a car.  He knows he’s the one that will pay for it via a loan, but the bank will require my signature to see the loan through.  I’d rather not want to, but that is what it takes to kick his credit record into gear.

From my experience, the "credit" that is being discussed here is "trade credit" - the ability to purchase goods /services from other vendors and pay for it later. Typically this "later" is 30 days although some vendors may want 15 days. In some cases, you may be able to get a discount for "fast payment" (example 2% for paying in 10 days).

Therefore, in my opinion, you have a business where trade credit is valuable, then building your company credit rating is good business. Some larger companies still look at D&B info when determining whether to deliver to the customer "on account". Still having a good business credit status is better than a bad one.

That said, if you are looking for Capital -whether it be a loan for working capital, an equipment lease or equity investors - the importance of your D&B credit report is secondary to other factors.

Good luck to you all,

Robert Johnson

William, (or is it Steve):

Just to be clear, I didn`t mean to imply that lenders didn`t even look at the D&B info. What I wanted to convey is that there are other factors that have greater importance in securing a loan. In other words, I`m not aware of small, newer businesses getting a loan just on the strength of their D&B report.

FYI, the requirement for personal guarantees and collateral is standard with an SBA guaranteed loan.

All the best,

Robert Johnson