Boost your business credit: here’s how utilizing Dun and Bradstreet can help

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Your personal credit score is a report card (sort of) of how responsible you are for your credit. If you apply for a mortgage, auto loan or credit card, the lender will run your credit to gauge your creditworthiness.

There is another type of credit score that is only for businesses to reflect how responsible an entity has been for the credit. In other words, this is a company report card. is not Business owner personal loan analysis. You can get a business credit score using your credit report. Commercial credit bureaus.

Dunn & Bradstreet is one of the three major commercial credit bureaus (along with Experian and Equifax). For this reason, it’s a good idea to open and use reporting business credit cards responsibly. Let’s take a look at how to build a credit profile with Dunn & Bradstreet.

How do business credit cards report to the credit bureaus?

The credit bureaus to which you report your business credit card will vary based on various factors. Let’s take a quick look at them.

Credit card issuer

Many business credit cards don’t show up on you. Personal credit report. Even if you use your Social Security number to apply, your credit card activity will remain separate. However, if your account goes bad, your personal credit carries those losses.

Note that this is not the case all of them Business credit cards. Some issuers intentionally report low business card activity on your personal credit.

Attaching an EIN to your application

During the application process for a business credit card, you can add an Employee Identification Number (EIN) along with your Social Security Number (SSN). An EIN is a federal tax identification number issued by the IRS that businesses can apply for. It’s like an SSN for your business–although it’s not as confidential.

Adding an EIN to your business credit card application can help you build business credit. Your activity on that card is matched to your EIN.

Additionally, some business credit cards (ie, corporate cards) allow you to open a credit card with just an EIN–no SSN required. This is usually possible if your business credit profile is well established and you are generating significant income. Opening a business card with an EIN guarantees that the account will not appear on your personal credit report.

DUNS number

A Data Universal Number System (DUNS) number is not used for tax purposes, but instead is a number that other businesses can use to determine your company’s financial health. If you want a business credit score generated by Dunn & Bradstreet, you need one.

For example, if you are applying for a loan from another company, they may run your DUNS number to determine if you are a suitable candidate. “Dunn & Bradstreet tends to give the lender a little more security,” says CPA Carlin Barry. “Yours [business] Credit is based on your payment history – and whether other lenders consider you favorable. What do you have for collateral?”

Any business can apply for a DUNS number through the Dun & Bradstreet website – completely free.

Why your business should build a business loan

“Credit cards, lines of credit and term loans play a key role in supporting sustainable growth throughout the business lifecycle,” said Michael Kuhn, SVP and team leader at Cambridge Savings Bank. “Many businesses, especially B2B businesses, rely on lines of credit to ease cash flow. B2B businesses generally need to pay vendors and employees before getting paid for goods and services. As a result, without this “bridge” many businesses cannot continue to operate due to lack of capital.

of Federal Reserve (PDF) provides statistics to back this up. In the year By 2022, a whopping 40% of employer organizations will have applied for loans, lines of credit or cash advances. 65% of businesses applied to meet operational costs – and 53% were interested in expanding business, pursuing new opportunities or acquiring business assets.

For companies with meaningful expenses, it’s a good idea to start building a business loan as soon as possible.

Another reason you want to build business credit is to be able to keep your personal finances from reliant on your company’s success. “If you have significant personal assets, you want to keep them out of your business,” adds Carlene Barry. “If the business is going belly up, you want to try to create a perception that it’s a separate entity.”

Which business credit cards do you report to Dunn & Bradstreet?

While not a comprehensive list, you can expect the following credit cards to report to Dunn & Bradstreet.

  • Capital One Venture X business card
  • Choose Capital One Spark Cash for the best credit
  • Choose Capital One Spark Miles for business
  • Capital One Spark miles for business
  • Ramp business card
  • Nav secure card
  • Connect with US Bank Business Elite™ World Elite Mastercard®
  • Bank of America Triple Cash Visa® Business Card
  • US Bank Business Leverage® Visa Signature® Card
  • Bank of America Business Platinum Card

The Small Business Financial Exchange (SBFE), a not-for-profit trade association, collects other data points related to business credit cards. It’s not a credit bureau, but it does make its data available to Dunn & Bradstreet.

Tips to help you build your business credit

Business credit bureaus consider the same details as consumer credit bureaus when determining your business credit score (consider factors like payment history and credit utilization). However, they also look at your industry, the size of your business, and the companies you’ve done business with in the past.

Here are the top things you need to do to develop (or maintain) a strong business credit score.

Continue payments

One of the most important factors for a credit score is on-time payments. Punctuality shows that you are running a creditworthy institution. When you’re late on a payment, it (literally) raises red flags with creditors and other businesses.

Additionally, delinquent business credit card accounts are often detrimental to your personal credit. Even business credit cards that don’t report to the consumer credit bureaus will be affected if you have late payments.

Try to pay your balance in full

In short, credit utilization is the amount of credit you are currently using. For example, if you have a credit card with a $25,000 limit and spend $2,500, your credit utilization is 10%.

Generally, lower credit utilization is better. Having a great amount of credit shows that you are not strapped for money. Not all small business credit cards give you high credit utilization—in fact, many don’t report to the consumer credit bureaus.

However, it is wise to keep your balance as low as possible. Pay your balances often and in full to keep your debt low.

Find cards that suit your business needs

The business credit card landscape is extremely diverse. Whether you’re a growing C corp with hundreds of employees or a sole proprietor who sells items on eBay on the weekends, there’s a business credit card that’s right for your needs.

To find the perfect business credit card for your situation, you must first identify your company’s goals. Larger businesses may choose a product that gives them the most control over employees. For example, some products allow you to set specific spending limits for each employee card—and even dictate the merchants at which the card can be used.

Small businesses, such as sole proprietors, may focus more on daily expense returns. Cash back and travel points are two common credit card rewards buckets. Alternatively, if you have a lot of upcoming expenses that you don’t think you can pay off quickly, a 0% intro APR business credit card may work best for you.

The taken

If you work as a sole proprietor (say, freelance writer, DoorDash driver, etc.), you probably won’t. Desire It may be possible to build business credit Use a personal credit card for business expenses. But if you’re interested in expanding your business or have a high income with multiple employees, a good business credit score can be the difference between securing the financing needed to meet operating expenses and closing up shop.

You should get an EIN and DUNS number as soon as possible to start building your business credit profile. As long as you manage your company responsibly, the credit score you generate will be your golden ticket in the business world.

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