Qualify for small business credit line or loan
- Many banks rely on credit ratings from D&B to determine eligibility for a small business credit line or loan
- Find out the D&B credit rating of your own business using the free DNBi SelfMonitor 14-Day trial
- Actively improve your commercial credit rating after seeing and understanding it so you will get the small business credit line or loan you are applying for
When evaluating the application for a small business credit line or loan banks look at multiple pieces of information on a small business including a personal credit report of the owner and a commercial business report for the business. Less than stellar credit ratings in either can mean your application for a small business credit line or loan is denied in this tough economic environment. You should be aware of your credit ratings before you apply for a small business credit line or loan so you can take action and improve upon them to increase your chances of getting that small business credit line or loan right away..
Keep tabs on what you look like to others
- Selective reporting to business credit reporting agencies may not show the correct picture of your company’s business credit
- Find out the D&B credit rating of your own business using the free DNBi SelfMonitor 14-Day trial
- Actively improve your business credit rating after seeing and understanding it
Unlike the consumer market where every credit card transaction is being reported to a credit bureau, only select business transactions are reported to businessl credit reporting agencies. Most of these transactions are reported automatically by large, nationwide vendors. Sometimes small businesses too have joined a network of trade information providers and report how their customers paid their bills. Why should you know what is being reported on your business and ensure it is correct and representative? Because others will look at this information in your business's credit report and decide whether to extend credit to you and for what terms. Your business credit report also keeps track of what kind of businesses inquire on your business and you can learn a lot from this information, such as how effective a new marketing campaign is.
Get better business interest rates
- Many banks rely on credit ratings from D&B to set interest rates
- Find out the D&B credit rating of your own business using the free DNBi SelfMonitor 14-Day trial
- Actively improve your commercial credit rating after seeing and understanding it so you qualify for better business interest rates
The interest rates that are offered to you by a financial institution are driven by a risk evaluation that the financial institution performs on your business. Each financial institution may have their own risk evaluation for setting interest rates but generally personal and commercial credit ratings both play a role in determining the risk, and therefore the interest rates, for a small business. Better credit ratings generally mean better risk ratings and thus better interest rates. You can potentially save lots of money on interest rates if your credit ratings are better.
Improve trade credit or trade terms from suppliers
- Many suppliers require that you have a DUNS number and a minimum credit score before they agree to extend trade credit to you or decide on trade terms
- Find out the D&B credit rating of your own business using the free DNBi SelfMonitor 14-Day trial
- Actively improve your commercial credit rating after seeing and understanding it so you get the best trade credit and the best trade terms possible
Suppliers make trade credit and trade terms decisions on their customers based on many factors: Research they do on the internet on your company, word-of-mouth or insight from industry peers, and commercial credit reports. You can greatly improve your chances of getting more trade credit and better trade terms if you have positive reviews from all these sources: the supplier will deem you trustworthy and extend more trade credit to you for better trade terms, which means more cash at hand for your business. You should look yourself up and see what others see and hear about you: "Google" your company, ask around in your informal networks and look at your credit report.
