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How Does One Build Business Credit

BluPantherBluPanther subscriber Posts: 5
edited December 2015 in Startup Funding
I have read about starting business credit without using your personal guarantee and was wondering if anyone has any information about how this is done.  I am assuming that one of the reasons one would be interested in this is because the inquiries on personal credit would wreak havoc on your personal credit score.
I read somewhere that you need to get a Dun & Bradstreet number to accomplish this.  How does that work?
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  • CheerDirectorCheerDirector subscriber Posts: 4
    I look forward to hearing some responses on this too. CheerDirector2006-9-27 23:20:57
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  • NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    Good Question,Establishing Company (corporate) Credit was a huge question for me when I started the business. I searched and searched until I came across D&B. I think for $249.99 they will establish a credit profile for your company. See the problem with Vendors and people you do business with is, they never report your good standing and prompt payments to the credit bureaus, they only report the negative stuff, like late payments and past due amounts. When you create a profile with D&B you can list all your vendors, and they will contact your vendors as to see if you pay on time or are always late. One of the draw backs in establishing business credit is if you are a sole-proprietor, you are still using your social security as your FED TAX ID,
    What I would suggest is Incorporate, Get a FED TAX ID for your corporation this way you can use the FED TAX ID instead of your SOCIAL
     
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  • BluPantherBluPanther subscriber Posts: 5
    Great answer and so simply put.  I found many companies that charge up to $500 to set up your credit.  I have a company that I set up a trade name for with the state of maryland and then I went ahead and got the Employer ID Number (EIN) that I would use instead of my social.  The ideas was that as I expanded I could hire employees and use the EIN. Blupanther2006-9-27 21:14:22
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  • JayDeeJayDee subscriber Posts: 0
    Thank you so much for this topic. I just learned something new and will start doing my own research on this as well.Since I work from home, I am a Notary Public and Wedding Officiate, I have always just paid cash for everything.  But now that I am going to be offering more services I need to buckle down and do things the correct way. I love reading everyones questions and the replys, so much to learn and at my age learning new things are hard to retain at times! JayDee
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  • macmillionmacmillion subscriber Posts: 0
    How long did it take for Dun & Bradstreet to build your business credit profile.
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  • macmillionmacmillion subscriber Posts: 0
    I look forward to hearing some responses on this too. Have all the answers for you when you are ready
     
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  • BluPantherBluPanther subscriber Posts: 5
    Thank you for this information.  It is well presented and I love the information about how Paydex works.
    Shirlene
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  • pagejamespagejames subscriber Posts: 1
    My pleasure!  I, too, am just starting to work on corporate credit and I figure in some way, we are all in this together.  So anything we can do to help one another is almost an obligation for me.
    Good Fortune!
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  • NetmomNetmom subscriber Posts: 5
    Hi all! Just an FYI the time they say it takes to get your DNB# is insane! You can get it in a day or so if you say you need it for use in applying for governemnt contracts or grants. Not a lie since the Gov buys everything under the sun includung services and even working with the SBA counts. Here`s the link... http://fedgov.dnb.com/webform</A> They should get back to you in a day or so via email with your number.
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  • BluPantherBluPanther subscriber Posts: 5
    True.  DNB will probably call you and say that they need you to pay $299 to get your number.  Just be firm and tell them you are in the middle of applying for some govt. contracts and this is all that you need.  If they continue to give you a hard time, get in touch with them through the website that you applied through, and it will take care of the problem. 
    I am still trying to apply for govt. contracts but have yet to find something within the area I am working in.  There could be some lucrative jobs on the site so it is worth pursuing.  Good luck.
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  • NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    You know whats more insane? the 550.00 they want to charge for a DUNS number. please be advised that they will call you.... and they don`t tell you that you are purchasing, they walk you through the interview and when they are done they just say "How would you like to pay for that? VISA blah, blah, blah.. Another question I been wanting to ask is: What if you have a Corporation and you various D/B/A`s under your Corp. Which name do you want to use? The corporate or the D/B/A?
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  • rvdebbyrvdebby subscriber Posts: 11
    From what I read, you need a seperate number for each physical location. If you are running all of your dba`s from one office I would register the corp.
    I have not found anything that says you are required to pay the $550. Do you?
    I have a somewhat related question. Part of my inventory includes hardware; screws, nuts, bolts... how do I find a government contract to sell these items to them? I am a female, small business owner, rapidly reaching sr. citizen status (does the gov go with retirement age of 65 or AARP age of 50 as a guideline for Sr.)??
     rvdebby2007-4-2 11:48:13
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  • BluPantherBluPanther subscriber Posts: 5
    RV Debby -
    The DNB number is not free unless you are going to be using it for a government contract.  The minimum was $299. 
    If you want to find out about contracts go to www.grants.gov</A> as a source.
    Good luck
    Blu
     
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  • NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    Its not free but you can get one. regardless if you want to start a credit profile or not. In the end you will get one eventually. The only thing is you`re going to have to wait 30 to 40 days which is not bad. I started my corporate Credit with T-Mobile so at least I know that there`s something out there
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  • BluPantherBluPanther subscriber Posts: 5
    If you are going to be bidding for government contracts you don`t pay for the DNB (mine was free because I was bidding on one).  DNB did call and say that i had to pay.  I just told them that I didn`t have to as it was one I was getting in order to bid for a government contract.  That settled it right away.  DNB will not tell you that you don`t have to pay if you are bidding for a govt. contract, so make sure to emphasise that.  The CCR website lets you know exactly what you need to do.  Another great source for getting information on building business credit is Creditboards.
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