Building a Positive Business Credit Profile - Page 1

When you get to Dun and Bradstreet's site you will see that they have tools to check if your business is currently listed and what is being said about it. D&B also has a tool that, for $499, allows you to establish the framework for your business credit profile. If you are in a great rush you can use this service; however, you can do it for FREE.

D&B has a free form to apply for a new D&B number only. This option does not establish a business credit profile. It takes about three weeks to receive your business D&B number and on the pages that follow I will be showing you the steps to build your own profile, absolutely free.

Once your Business Credit Assessment is complete, you can begin to build your Business Credit Profile. In order to successfully fund your future capital needs, it is important that you build a favorable credit profile for your business.

1. Have a Legal Business "Entity"

In order to create and build a "business credit profile" that is separate from your personal credit, you must have a business entity.

There is no such thing as a "business loan" to a sole proprietor. That is a personal loan. Without a business entity there is nothing for an investor to invest in or for a lender to lend to. You must separate the business as an entity apart from the personal owners and the only way to do this is setting up a legal business entity such as a corporation, LLC, etc.

If you do not have a business entity, SET ONE UP NOW!

If you need help establishing your business entity go to http://www.mycorporation.com and review your online options.

Establishing your business as a separate legal entity is where you begin to build a business credit profile that is separate from your own personal credit profile.

2. Business Listing Confirmation

Your next step is to confirm that every agency and trade credit vendor has your business listed the exact same way, with the same address and phone number.

For example, one might have you listed as "ABC, Inc.", while another has you as "AB Consultants", and yet another as "AB Consultants, Inc.".

Take the time to verify that all your accounts (State, IRS, Bank, 411 Directory, power bill, phone bill, landlord, etc.) have your business listed the same way and with your "exact legal name".

Also take the time to verify that all agencies, banks, and trade credit vendors have your business listed with the SAME Tax ID number.