Your business entity is going to need five (5) trade references that have given you a credit account and report a favorable credit history to the credit reporting agencies. This can be one of the most difficult steps in the credit building process. Don’t worry and don’t stop here!
Trade references are just vendors. Check with all of your suppliers and ask them to give you Net 30 day payment terms and report your payment history to Dun and Bradstreet. Have them start you out slow.
Establishing just five (5) favorable trade references is a major part of building your Business Credit Profile and creating a favorable PayDex score. This is not an overnight process and should be given a large amount of attention in order to succeed.
12. Does all this sound like a lot of work?
It is!!. There are services out there that will tell you that this can be done in a month, IT CAN’T. There are services out there that for $1,000 or $2,000 promise that they will get you a PayDex score of 65 or better in two (2) months . . . THAT IS FRAUD! DON’T DO IT!!!
A Business Credit Profile is not required for you to receive funding for your business now, but it will open up more funding programs to you in the future and you may not have to personally guarantee every deal. Building good business credit is just like building good personal credit, it takes work and you need to pay your bills on time.
In the eleven (11) steps above I have given you all you need to know about building a great and separate business credit score. If you follow the steps it will take you about six (6) months to have a fairly good score and in two (2) years you will have a great score and your business credit should be able to stand on it’s own.
The process is not simple and not necessarily easy, but it is proven and it is worth it. If you haven’t already started, then get to it today!
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