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How Does One Build Business Credit
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Good fortune!
The DNB number is not free unless you are going to be using it for a government contract. The minimum was $299.
Blu
Maybe I am not following the conversation correctly.
When I applied for a DUNS number I did it online. They called in a few days and wanted to sell a couple of packages. I had selected the free option and after listening to the lady a bit I declined the offers and she set up the number. I do not remember paying anything. The process was not overnight but I believe I was up and running within a weekweek.Note
Note that this was about 2 years ago so maybe things are different now.
when I tried to go the free route a gentleman called me (this was last year around November, and tried to sell me the number. I told him I had selected the free option and he said that the only way they would set it up for free for me was if I was trying to get a contract with the government, or if I was doing business with a company that already reports to them. Did you already have business credit through someone that was reporting to them (eg. Office Depot or Staples)?
You apply for one and you purchase their package.
You wait till you do business with a company and they report your rating to DNB.So basically, you will get one eventually. The only thing is you wont be able to add trade lines and stuff of that nature. Here is something for you guys. I tried opening an account with SAM`s Club and they are one of the hardest people to get credit with. Try elsewhere. Any Suggestions? I have T-Mobile under the Corporation`s name now..
Staples and Office Depot are the easiest to open up. The website may say no but you will get the credit cards without having to put up a personal guarantee (PG). NEBS and Viking are also easy, according to Creditboards.
When you go to a bank seeking a business loan you will need the following a sound business plan, projected cash flow and profit and loss and other things.
You will need to sell your business potential be honest about the business dont fudge information, it will hurt you in the end.
Bree
I believe it`s the same either way. It just comes down to which entitiy (LLC or S-Corp) is better suited to whatever business you`ll be involved in. I`m not really qualified to tell you which one it it. You can consult an attorney(make sure you get referred to one by someone you trust)or there are plenty of books that talk about the different entities you can create and what the advantages and disadvantages of each one are.
Good Fortune!
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
Thanks for responding. I, too, was really interested in hearing the answer to that question. I think this D&B is a great idea.
Are they the only company of this sought that does this type of thing?
I actually feel that Bree`s post/suggestion is a sound and safe approach. If risk is an issue, Bree`s approach comes complete with a safety net.
Try them out and see.
I like this company because it is straightforward and helps you every step of the way. My favorite part about this company is you are not charged anything unless they approve a loan.
Hope you find information helpful.
I actually feel that Bree`s post/suggestion is a sound and safe approach. If risk is an issue, Bree`s approach comes complete with a safety net.
I agree with Bree also. Hence the "good points, Bree". I agree with incorporating (or forming an LLC), etc. I was just pointing out that one of the primary goals of a business is to make net profit and if taking on debt makes that happen, it`s not a bad thing. Yes, the liability is a decrease in net worth, but if it creates assets (cash, accounts receivable, etc.) - an increase in net worth - that outweighs the decrease, isn`t that a net increase in net worth? And taking out a line of credit when you don`t need it is a heck of a lot easier than trying to take one out when you do need it. And if you take out a credit line and don`t use it, it`s not a decrease in net worth, right?
Just my thoughts
Good fortune!