Building Small Business Credit Properly

A lot of business owners need financial support. However, most of them want access to loans that do not require collateral. If you intend to apply for a business loan, one basic requirement that you need to prepare for is good credit, especially if you want to acquire an unsecured business loan.

If you are an established business, it’s crucial to have a solid business credit to back up your loan application. Due to the absence of collateral, most lenders will only extend an unsecured business loan if you have an impressive business credit.

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Business Credit Card Myths

Some business owners thought that credit cards is bad for businesses but it's not at all. Check these most common business credit card myths and the truth about them.

There are business owners who may have a negative notion about credit cards for business, thinking that using business credit cards is really not necessary or that using one will only lead to bad credit. But in reality, benefitting from a business credit card depends on how the cardholder makes use and manages the account. Listed below are some of the most common business credit card myths and what you need to know about them:

Credit cards for business have expensive fees. Some business credit cards may come with expensive charges but if you do your research well, you should be able to find credit cards for small business with reasonable interest rate, low fees, and great provisions.

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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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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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Build Up Your Business with the Help of Business Credit Cards

How Business Credit Cards Can Build Up Your Business? One of the effective business financing for building business is the business credit card. Find out how using one can help you build up your business credit history.

There are several types of business financing and applying for a business credit card is one of them. For business owners who seek financial assistance, a less complicated process, and a speedier approval, a business credit card is the perfect solution. In this article, let’s talk about how small business credit cards can help build up your business credit history whether it has just been started or on its way to growth.

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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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What's in a Business Credit Profile?

A business credit history plays a big role in the success of your business. You may already be aware of the contents of your credit history and why it is important for you to keep your credit in excellent level. In this article, we'll be discussing more about your business credit profile and what you can do to keep it good standing.

Establishing Your Business Credit History
What every business owner starting up a business must first do is establish a separate credit history for the business. This can be accomplished by applying for a tax ID number or a D-U-N-S number from Dun&Bradstreet. D&B is a credit reporting agency that exclusively caters to businesses. Experian is another credit reporting agency that services both individuals and business.

Applying for a business credit card is another way to build up your business credit.
As you use your business credit card for your business purchases, you also continue to build your credit one step at a time. As long as you keep your credit card payments on time and you stay within your credit limit, you will be building a strong foundation for your business credit.

The Importance of Your Business Credit
Just like with your personal credit history, your business credit determines whether future lenders, insurers, and potential investors you’ll be dealing with will have the confidence to give you credit. In short, your creditworthiness depends on what is reflected on your business credit report. Perhaps, as you’ve just started with the business, you may not need to apply for a loan at this time. However, as your business to expand, you’ll find that having an excellent business credit history is invaluable in getting the loans you need. If you’re a business owner, one of your primary goals should be to establish and maintain excellent credit.

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