How Paydex Score Helps Your Business Financing

If you own a business, you should be interested in learning about Paydex Score and how it can affect your business. What is a Paydex Score? How can you keep your Paydex Score in an excellent standing? Is it really important to keep your Paydex on a high level? What can you do to improve your business credit? Let’s answer these questions one by one.

Your Paydex Score Helps Your Business Financing
You may already be familiar with your personal credit report and how your credit score is calculated. For business owners and enterprises, the Paydex is the equivalent of your personal credit score or better known as FICO score. If you’ve already signed your business with Dun & Bradstreet (business credit bureau), you are already building a separate credit history for your business.

Your Paydex Score is the number you get from Dun & Bradstreet. This score is included in your business credit report for your prospective creditors to see. A Paydex score ranges from a low of 80 to a high of 90 to 100. Meanwhile, a score of 70 and below are considered as poor and sends out a negative impression to lenders.

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The Benefits of Credit Cards For Business Owners

One of the efficient way of building credit is by using a business credit card. Read more through this article to out these benefits one by one.

If you are a business owner, applying for a business credit card is definitely recommended. What are the benefits of having business credit cards? How can credit cards improve your business? In this article, we’ll discuss the advantages of small business credit cards and some pointers on how to choose the right one.

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Benefits of Using a Business Credit Card Machines

Accepting credit card payment from customers is definitely a big advantage for business. Here are the following tips on how to choose the right business credit card processing machine for your company.

When times are tough, many people use their credit cards to make important purchases as it gives them the option to take the item now and pay for it later. For business owner, accepting credit card payment from customers is definitely a big advantage.


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5 Steps to Effective Business Credit Card Management

If you own a business, have you considered applying for a business credit card? Check these 5 steps on how to effectively manage business credit card.

According to survey conducted by the Tower Group-a leading research and consulting firm- only two thirds of small business owners use a credit card with only 40% using business credit cards. Are you a small business owner? If yes, are you planning to apply for a business credit card to assist your business financing? Indeed, when used correctly, a small business credit card can be a great tool in enhancing the performance of your business.

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Business Credit Card FAQs

Despite the popularity of business credit cards, many entrepreneurs are still apprehensive about using them. Are you a business owner? Are you thinking about applying for a business credit card? Understanding the basic points about them may help you come up with a decision. Here are some of the most Frequently Asked Questions about business credit cards:

Do you need to own a large business in order to qualify?

In the past years, business credit cards are offered only to larger companies. These days, even small business entrepreneurs and home based business owners can apply for a business credit card. It doesn’t matter whether you are managing a small business or a big one, as long as you meet the requirements of the card.

When applying for a business credit card, would your personal credit history count?

Yes. For new businesses who have not yet established a corporate credit, the business owner’s personal credit history would be used as the basis for approval. The best business credit cards in the market often require good to excellent credit so it’s best to check the status of your credit first before sending in your application. Still, there are also business credit cards for business owners with imperfect credit or with no credit at all.

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Comparing Credit Cards for Your Small Business Profit

These days, the number of small business entrepreneurs who apply for business credit cards continues to increase. Credit card companies recognize this potential and that’s why they now offer a wide array of business credit cards that were especially created to meet the demands and needs of business owners.

If you’re a business owner, it’s up to you to make the choice. You may opt to get two or more business credit cards from different credit card issuers or you may stick with just one company. In any case, your choice should be based upon careful research and examination. This article presents some tips on how you can choose the right credit card for your business.

The Type Of Card that Suits Your Business

Business credit cards are not just meant to be tools for your spending. Some business credit cards come with rewards as well. Take for example business credit cards with cash back rewards. Generally, cash back business credit cards give its holders the chance to earn points from their credit card purchases. These points can be exchanged for cash rebates, gift certificates, or as credit to your account. Thus, every time you use your credit card for purchasing, you get points at the same time.

There are also business credit cards with frequent flyer miles and airline miles rewards programs. These cards are great for business owners who travel a lot to different States and countries to buy supplies or promote their business. By using a business credit card with a miles reward program, an entrepreneur can get huge savings from his travel expenses.

Then there’s also the chance to save on your gasoline expenses through business credit cards with gas rewards. These cards are advisable for business owners who use vehicles for delivering their goods to their customers. Each time they use their a credit card on their gas purchases, they also earn gas rebates on their account.

Yes, reward business credit cards are supposed to help you get more savings from your spending and increase your business profit. How is this possible? By choosing a card that matches your business’s spending and needs.

Examine the Interest Rate And Fees

Of course, the rates and fees vary from one business credit card to the next. Again, the interest rate is not the only fee that you should be concerned about when making a choice. Other fees such as the late penalty charge, balance transfer cost, annual fees, and transaction charges can add burden to your responsibility.

The best business credit card in the market not only comes with a low rate of interest but with reasonable fees and conditions as well. To find out the true costs of a business credit card you’re considering, read and understand the card’s contract. Here, all the fees and conditions of using the credit card should be clearly discussed including all the disclosures from the issuer. By understanding your business credit card agreement, you can better compare one potential credit card from the other.


Credit Cards Resources

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Building Your Business’s Paydex Score

As a business owner, one of the things you should be interested about is your Paydex score. Do you clearly understand what a Paydex Score is? What role does it play in building your business credit? How can you build up an excellent business credit?

Understanding Your Business Credit Paydex Score

Paydex is a system developed by Dun and Bradstreet (D&B) - the leading credit reporting agency in the US. The Paydex Score is used to calculate a business’s credit history in terms of figures. For individuals, it is the equivalent of the FICO score. However, the Paydex system is only applicable for business entities.

Once you’ve registered with D&B, you also begin building your business’s credit history. Nevertheless, take note that not all lenders and merchants report to D&B. Thus, it is important to make sure that the lender or supplier you’re dealing with reports your payments to the credit bureaus.

Included in your business credit report would be your Paydex Score. This scoring system ranges from 0 to 100, with 90-100 considered as an excellent rating. A score of 80 and below is considered as good while a score of 70 and below indicates bad credit.

Obviously, a higher Paydex score would give a business the advantage of qualifying for loans or accounts that require excellent credit. Banks, lending companies, suppliers, merchants and investors all rely heavily on your business credit history when it comes to closing deals. Therefore, every business owner must be concerned about raising his business credit rating.

How to Raise Your Paydex Score

What factors affect your Paydex Score? Just like with your personal credit report, the timeliness of your payment plays a big role in building your business credit. If current funds aren’t enough to cover all your debts from different creditors, try to pay off your largest debts first to avoid incurring high interest rates and penalty charges. One or two late payments may not create a big damage to your score but constant late payments would certainly hurt your business credit.

What if it’s not possible for you to meet your payment due date because of a financial crisis? In this situation, the best thing to do is to contact your creditor right away and ask for an extension of your payment deadline. Explain your situation to your lender and ask for some adjustment in your payment terms. Most lenders would be willing to do so especially if your records show that you’ve been a good and trusted customer in the past.

The types of credit you have are also determining factors in attaining a high Paydex score. Acquiring a business loan or a business credit card can be great tools in building business credit. Remember, to build an excellent credit, you should make it a point to stay within your given credit limit and to submit your payments on time at all times.

Reviewing your business credit report from time to time is also advised. In case you may have some issues with the information contained in your report, you may contact D&B and request for an investigation.


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The Importance of Paydex Score in Building Business Credit

You may already be familiar with your credit report and your FICO score. But if you’re a new business owner, are you also understand the elements that make up your corporate credit? Do you know what Paydex means? This article discusses the basic points that you should know about business credit.

Your Paydex Score

Your Paydex Score is the equivalent of your FICO score. Dun & Bradstreet – a major business credit bureau, uses this method of calculation to measure a business’s credit. Once you’ve registered with D & B and you have received your D&B number, your financial dealings with creditors and other businesses will be reflected in your business credit report. When you obtain a copy of your credit report from D&B, part of the report includes your Paydex score.

A Paydex score ranges from 0-100, with 90 and above considered as excellent, 80 as good or acceptable, and 70 and below indicates a poor rating. Just as individuals aim for a high FICO score, business owners also want to reach a high Paydex score and maintain an excellent standing.

How to Raise Your Paydex Score

How do you achieve a high Paydex score? Timeliness of payment plays a vital role in how your business credit score is calculated. Of course, the best way to achieve an outstanding score is to always submit your payments on time. If you can pay your bills earlier than your due date, then the better it would be for your business credit.

Would occasional late payments affect your score? Yes. In fact, even a single late payment can pull down your score by a point or two. Nevertheless, if your average score is around 95 or more, falling one or 2 points down would bring you to a score of 93 which is still considered as an excellent rating. On the other hand, if your average score happens to be 82 flat and you’ve lost 2 points because of occasional late payments, then that would bring your total score down to 79 which can be considered as a poor rating.

Thus, as much as possible, it is crucial to be on time in submitting your payments to all your creditors. What if you can’t afford to pay all your creditors on time? It would be better to pay off your highest bill first to lessen the impact on your credit score.

Using Your Paydex Score to Get a Business Credit Card

Obviously, a high Paydex Score makes you an ideal client for banks and lenders while a low score makes you a high-risk borrower in the eyes of creditors. It is interesting to note that the best business credit cards in the market always require good to excellent credit.

However, if you have a poor business credit, you may consider getting a secured business credit card as a tool to raise your Paydex score. Understandably, a bad credit business credit card would have higher interest rates and lower credit limit than credit cards that require good credit. Nevertheless, by using your credit card account and paying your bills on time, you can make an improvement in your score within just a few months. Find a credit card that would report your payments to the major business credit bureaus as it is the only way you can raise your Paydex score. Eventually, you can ask your credit card issuer to upgrade your account once you’ve raised your credit score.


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Using Business Credit Cards in Business Solutions

If you haven’t yet recognized the benefits of owning a business credit card, it’s definitely a matter worth your consideration. Aside from enabling you to separate your business finances from your personal money, business credit cards offer more advantages. Let’s take a closer look at some of them.

Build your business credit.

As soon as you’ve applied for a corporate credit, it’s best to start building up your credit history with the help of a business credit card. You be already aware of the importance of having a corporate credit. A solid and excellent business credit prepares your business for its future growth and expansion. How can business credit cards help you build a solid credit history?

By using your business credit card for your expenses and paying off your balances on time, you are showing your worth as a borrower. Aside from timely payments, staying within your credit limit is just as important. Financial experts recommend using only 30% to 40% of your given credit limit but not more than 50% of your credit as this could send a negative impression on lenders.

Monitor your business expenses.

A business credit card can also help you in keeping track of your business expenses. Take advantage of the online account access that most business credit card issuers provide. This feature allows you to check on your account at any time without even leaving your office or desk. For a manager who handles a hectic schedule and so many tasks, this is a very valuable option.

You can also use your monthly billing statements as well as your quarterly and yearly account summaries as detailed references to your accounting. When it’s time to file your business taxes, these documents can also prove to be indispensable in determining which of your past purchases can be deducted from your taxes.

Get rewarded for your spending.

Some credit cards for business offer reward programs that can help you save more from your expenses. The basic reward programs for business credit cards are the Frequent Flyer Miles, Gas Rewards and Cash Back Rewards. You can choose a reward card that gives the incentives that complements the nature of your business.

For example, if your business is into a lot of traveling, you can certainly get more benefits from a Frequent Flyer Miles Business Credit Card. On the other hand, if you own a fleet of vehicles that you use in your business operations, a gas reward business credit card may be your best choice. If you’re in a buy and sell business, you may want to consider getting a cash back reward business credit card instead.

Be prepared for unexpected expenses.

With the help of a business credit card, you are ready to take on unexpected expenses at any time. Did one of your customers place an unexpectedly large order at a time when you don’t have cash? You don’t have to refuse this particular customer just because you lack the resources. Instead, you can simply charge everything you need to your credit card so you can deliver this order on time.

Having the option to make purchases instantly and pay them off at a later time is certainly one of the best things about owning a business credit card. The important thing to remember is to always pay off your balances on time to avoid the risk of credit card debt.

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All about Your Business Credit Score

All businesses –both large and small – all rely on good credit standing for a favorable stand with prospective lenders. By having an excellent business credit score, a business owner can be confident that he can obtain the financial assistance he needs at any time without difficulty.

But building a credit history for your company is not achieved in an instant. Time and effort is also needed in order to build a solid business credit. In this article, let’s discuss the necessary steps to establish your own corporate credit.

Ensure your business entity. The legality of your business is crucial in establishing business credit. First, you need to define the legal entity of your business. It can either be a corporation or an LLC (Limited Liability Company) to qualify for a bank loan. If your business is a sole proprietorship, you may not qualify for a business loan and it would be easier to apply for a personal loan instead.

Proof of existence. In order to be considered as a legitimate company, you need to have a physical address, a business telephone number, and a complete contact information. A website and an e-mail would not be a sufficient proof of your company’s existence since anyone can easily create a presence online. Having a physical address is what’s most important.

Obtain all necessary business permits and licenses. Make sure that you’ve secured all licenses and permits that are required for all businesses in your local state.

Register for a business tax ID number. A business that has been in operations for at least 2 years should have a complete record of financial statements and have its own tax ID number. Make sure that your tax ID number, EIN (employer ID number), and licenses are all listed in the same exact legal company name.

Establish your business savings account. Having your own business bank account is a solid proof that your business is financially stable. A balance of at least $10,000 for the past three months is considered as favorable and stable.

Establish at least 5 trade references. Build up a good business-to-business relationship with your suppliers or business partners so you can use them as references for establishing your business credit.

Register your business with a business credit bureau. Before you can start building your company’s credit history, you need to register your company with a business credit bureau like Dun & Bradstreet or Experian. D & B is a leading business credit reporting agency in the US.

Get a business credit card. After registering your company with a credit bureau, applying for a business credit card is a great way to build up your business credit. As you use your small business credit card with your expenses, you are also building up a solid credit history. Of course, maintaining an excellent credit history depends on how well you handle your credit card account. If you make it a point to stay within your credit limit and if you’re always on time with your payments, you are building a positive reputation for your business.



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5 Important Things About Business Credit Cards

Some business owners think that getting a business credit card is unnecessary and choose to stick with their personal credit cards as a means of financing their business needs. But is there really an advantage in using a business credit card? Below are five important things a business owner must know about business credit cards.

1. Separate your personal and business finances.
At the start, one may feel that it’s okay to combine both personal and business charges using personal credit cards. But as you incur more business expenses in your personal account, you’ll see that combining the two isn’t such a good idea.

First, it makes accounting tasks more confusing and second, it makes management of your personal and business funding a lot more difficult. On the contrary, using a business credit card enables you to separate your personal account from your business account which is a great ease as your business starts to grow.

2. Business credit cards help build your business credit.
Every business owner must establish his own business credit history as early as possible. A business credit card lets you do just that. Keeping your business credit in good shape is a good preparation when the time comes that you’ll need additional help in financing or expanding your business.

3. Take advantage of special privileges.
Some privileges provided by business credit card companies are only limited to business credit card holders. These privileges include discounts, special rates, gifts, insurance, additional credit cards for employees, business reward programs and other perks that can boost your business.

In fact, credit cards with reward programs allow its holders to earn more points more quickly than personal credit card holders. This is because business expenditures are expectedly much higher than personal expenses. When you own a business, you’ll be spending the same amount of money each month whether you get a business credit card or not. So why let this opportunity pass when you can spend and earn rewards for your business expenses at the same time? Choose the best reward program that works best for your type of business. For instance, you may choose to get a credit card for business with a Cash Back Program, Frequent Traveler Rewards, Gas Rewards Program, etc.

4. Better rates.
Some people have the false notion that business credit cards always come with high interest. On the contrary, you can find business credit card deals today that are even lower than what personal credit cards offer. Don’t forget that competition between credit card companies enables consumers to choose the best deals.

5. Boost your personal credit history at the same time.
Since you haven’t yet established a business credit, when you apply for a business credit card, the bank would be granting you approval based on your personal credit history. This means, if you can keep up a clean credit in both your personal and business credit card accounts, it will be a great boost in your overall credit status.

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How to Find the Best Business Credit Cards

by: Steve Faber

Credit is vital to make almost any business operate at peak efficiency. Credit works as financial lubrication to maximize growth and allow for seasonal fluctuations in business. The largest category of business credit is the credit card. These are used by almost all businesses, and can be a vital step in building business credit to the point where a principal or owner's personal guarantee is no longer required for credit such as vehicle leases, inventory, or equipment financing.

Finding the best business credit card requires a careful analysis of your specific business requirements. What are you going to be using your credit cards for? If a majority of the card's use will be for travel, choosing a card that has rewards and discounts that can be applied to offset travel expenses and get discounts from hotels, air carriers and car rental companies.

If you will be using your business' card for recurring expenses such as office supplies and fuel, a rewards card that gives vendor discounts and supplier rewards can be a good choice. Many business supply firms, oil companies, and vehicle manufacturers offer cards with rewards that can be redeemed for their merchandise.

What ever special benefits your credit card may confer to the user, the first step is to make sure the basics are covered. The best business credit card for you should have a low interest rate, attractive fee structure, and good customer service. If the basics aren't in place, the other details aren't nearly as important.

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Find the best out of your Business Credit Cards

Maximize the great advantage of business credit cards. Find out how your business can benefit from the flexibility and conveniences that business credit cards bring.

Not proper use of business credit card will result to bad credit, but if you know how to handle your credit card responsibly, then definitely you and your business can avail the great benefits a business credit card offers.

Here are the advantages of small business credit cards and how you can use them to their full potential:

Keeps Your Cash Flow Steady. Sometimes your petty cash isn’t enough to cover for everything like for unexpected expenses, charge them on your card and pay at a later time. Having a business credit card on hand is indispensable. Make sure that you can pay back your charges on time because a business credit card covers some of your operating costs.

Build-up Your Business Credit. Building good credit and maintaining an excellent credit status depends on your timelines of submitting your credit card payments. Also, pay attention on how much of your credit limit is used. Ideally, to keep a high credit score, you should not exceed more than 50% of your allotted credit.

Track Your Business Spending. Use of business accounting software isn’t enough; business credit card is another way to easily monitor your accounts. Use you monthly, quarterly and yearly account summaries from your credit card company as references to your accounting particularly when filing your business taxes.

Get rewarded from your credit card spending. Choose from a wide variety of credit card rewards programs that are especially created to meet your business needs. By choosing a business reward credit card that complements your business’s spending, you can certainly get more from a reward business credit card.

Separating Your Business Finances from your Personal Money

Separating Your Business Finances from your personal expenses is a challenge. In this article, it's all about the advantages of using business credit cards for your business expenses.

Still today, many small business owners and home based business entrepreneurs prefer to use their personal credit cards with their business expenses thinking that it makes no difference. But a wise business owner should think about the long term complications that combining personal and business funds in just one account could cause later on.

At the start, you may find that using your personal credit card is enough. But as your business begins to grow and accumulate expenses, having a separate business account is indispensable. It will make a big difference not only in managing your business finances, but also in making finance-related decisions.

All your expenses are automatically included in your summary of accounts so you can be assured that you won’t miss a single purchase no matter how big or small that purchase was. You will be provided with monthly billing statements, along with quarterly and yearly summaries of your account. Purchases are categorized so you can use it as reference to your bookkeeping and accounting tasks. Filing your business taxes is definitely made easier with the help of business credit card account statements.

It has an option to access your account online. This is an enormous help for a busy business owner as it enables convenient tracking of business accounts at any time. Account summaries are also downloadable so you can use them along with your accounting software.

Getting a business credit card is to build a separate credit history for your business. By using your business credit card and keeping up with your payments on time, you can be assured that you will be building excellent credit history for your company. You may not need financial assistance at the moment but by the time you need to apply for a business loan to help you with your business projects, having a solid business credit history will help you secure an approval more easily. Aside form getting easy approval with your applications, having excellent business credit also guarantees that you’ll be offered better rates and terms by lenders.

In summary, getting a credit card for business is beneficial in two ways- for separating personal from business finances and for building up a separate credit history for your business. If you’re a business owner or planning on starting up a business of your own, this matter is definitely worth the thought.

Get to know Zero APR business credit cards

If you have a business, you should certainly be interested to know what is a Zero APR Business Credit Cards. This provides you basic knowledge on what you need to know about a Zero APR Business Credit Cards.

Business Credit Cards with 0 APR is similar to regular balance transfer credit cards. This kind of business credit card will help you get out from under your debts more quickly and easily especially if you do have a multiple business credit cards and is are trying to keep up with your existing balances with each card. It doesn’t impose an interest rate on the balances you transferred over. In this way, you can focus on paying off your credit card debts without worrying about the additional interest rate payments. But this offer is only for a limited time period.

How long shall it last? Check how much the interest rate will be after the introductory period ends. Make sure you weigh all the fees involved and it must be reasonable. Most important, understand business credit card terms and conditions, if not, you may end up with the wrong kind of business credit card in your hands. It is your responsibility to examine your chosen business credit card thoroughly by reading and understanding the agreement.

There are lots of business credit cards in the market and each one of them has different usage for a different type of business. Comparing them through a business credit card reviews helps you identify what kind of card suits your business.


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