Build Business Credit

Many business owners feel a need to build business credit when they start a business. The reality to this myth is that banks will rely on personal guarantees and personal credit for most business loans from $0-$20 million. Start up business do not normally have any kind of business credit so personal credit is used to mitigate the risk. If your business loan gets denied and they tell you it is because of no business credit we need to talk.

Building a relationship with a bank through deposits and other services will begin to establish credibility. Furthermore, a small line of credit or credit card will also help put proof in the pudding that your business is credit worthy. As your balances grow and your history is established, you will begin to build business credit with the lender.

A Dun and Bradstreet number (D&B) can track your business credit similar to a FICO score. Some lenders do a good job of updating the D&B while others do not. A D&B number is reviewed by bankers if one is present; however, it is never a deal maker or breaker in the loan process. You do not automatically get assigned a D&B number. You will need to contact them to arrange for a D&B number for your business.

Related Posts

Comments are closed.

business loan clients