All the World’s a Stage: Meet Dun and Bradstreet and the Business Credit Characters

Everything you Need to Know about Dun and Bradstreet and the Other Characters in the Show

All the world’s a stage they say, and when it comes to your business, business credit is the star of the show. It can make you laugh, cry, or carry you on wings that soar. It can truly be the foundation on which your business is built, or it can be the very thing that tears it down. Dun and Bradstreet has carried the title of lead player in a credit reporting agency role for years, but the supporting roles played by both Experian and Equifax bear mentioning as well.

Before we jump into the life and purpose of each, it can help to understand a little more about business credit. Why business credit? What makes it so special? Who needs it? Why does it play such a vital role in the show?

Why Business Credit?

There are a number of reasons why it is essential to actively attempt to build credit.

Shield Your Personal Credit Report

It is important to organization success that you develop business credit. Without a business credit score, your capability to fund your business rests entirely on the qualities of your individual credit score. That’s not a big deal if you have great personal credit.

However, business financing can impact your personal credit scores as well. If you finance your business on the merits of your personal credit, you will likely find your balances hover near your limits. On personal cards the limits are not as high as most business cards allow.

This has a negative effect on your credit report even if you are making your payments on time. If your business has its very own credit report, it’s not a problem. Limitations are higher, so you have a lot more credit to deal with. Regardless, it doesn’t impact your personal credit score.

When you have solid business credit, you have accessibility to funds to do the things you need to do throughout the normal course of company business. Not only that, but you can do what you need to do without worrying about depleting cash reserves.

In short, business credit opens the door to higher limits, lower interest rates, and it protects your personal finances from being affected by your business transactions.

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Business Credit vs. Personal Credit: A Character Study

While their character purposes are similar, they are not the same. They play roles that are the same, but in very different circumstances. Think of the difference in a parent and a boss. Both can tell you what to do. Both can teach you, guide you, and help you thrive where you are. They are not the same however. A parent leads and guides in your personal life, while a boss does so at work. A boss can fire you from your job, but your parents cannot. Your parents can kick you out of your house, but you boss cannot.

Personal credit and business credit kind of work the same way. Your personal score doesn’t have to affect your business, and your business credit doesn’t affect your personal finances, if you set things up properly. There are other differences as well.

Key Differences Between Personal Credit Reports and Business Credit Reports:

Personal FICO scores range from 300 to 850
Business credit scores usually range from 0 to 100.
FICO algorithms are commonly used by consumer credit bureaus to generate a credit score.
Business credit scores do not follow industry standard algorithms, meaning they can vary greatly between credit reporting agencies.
Business credit usually include only accounts that are in your company’s name. Your personal accounts are on your personal credit report.

You can get a free copy of your personal credit report from the three major consumer credit reporting agencies each year. This includes Experian, Equifax, and TransUnion. There are also several free options for getting a glimpse at your credit scores at any given time.
Business credit is quite different when it comes to accessibility. You have to pay to see your company’s credit report and to find out the score at all three major business credit reporting agencies, including Dun and Bradstreet, Experian, and Equifax.
Not just anyone can see your personal credit report, but business credit reports are public. Anyone that wants to pay can see your business credit.

Dun and Bradstreet: The Star of the Show

So, who is the star of the business credit report show? It’s a unanimous vote for Dun and Bradstreet. They are the oldest and most commonly used business credit reporting agency. They offer way more than just a single business credit score. There are multiple reporting options that lenders can choose from to assess the credit worthiness of a specific business. Following is a breakdown of what they offer, with an explanation of what it all means and why they are a credit reporting super star.

Credit Reporting at Dun and Bradstreet: What Does Dun and Bradstreet Do?

The quick answer is they provide lenders with business credit reports to help them make lending decisions.

There are six different Dun and Bradstreet reporting options, all measuring different areas of credit worthiness. The most commonly used and simplest to understand Dun and Bradstreet credit report is the PAYDEX. Generally speaking, this is the Dun and Bradstreet credit score most like the consumer FICO score. It measures the speed of payment and ranges from 1 to 100. A 70 or higher is “good.” For example, a score of 100 means that the company makes payments in advance, and a score of 1 indicates that they pay 120 days late, or more.

Without Further Ado: The Many Faces of the Dun and Bradstreet Credit Report

In addition to the PAYDEX, there are many other options for a business credit report. Dun and Bradstreet offers several different types.

Dun and Bradstreet Delinquency Predictor Score

The delinquency predictor score measures the likelihood the company will not pay, will be late paying, or will fall into bankruptcy. The scale is 1 to 5, and a 2 is considered good.

Financial Stress Score

The financial stress score is a measurement of the pressure on a company’s balance sheet. It indicates the likelihood of a shutdown within a year. It measures with a minimum of 5 and a maximum of 1, with a score of 2 being a good thing.

Supplier Evaluation Risk Rating

This is a rating that ranks the odds of a company surviving 12 months. The minimum score is a 9 and the maximum is 1. A score of 5 is good.

Credit Limit Recommendation

The credit limit recommendation shows a business’s borrowing capacity. It is a dollar amount recommendation for how much debt a company can handle. Typically it is used by creditors to determine how much credit to extend.

D&B Credit Rating

This is an estimation of overall business risk on a scale of 4 to 1. A two is considered good. The rating is given in conjunction with letters, the combination of which indicate a company’s net worth.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Even if there isn’t enough information on a business to assign a regular rating, Dun and Bradstreet will assign what they call a Credit Appraisal Score. This is based on number of employees. Another option is an alternative rating based on what data is actually available.

It is also important to note that the letter portion of this rating cannot be assigned as good or bad, as net worth is not necessarily an indicator of how stable a business is.

What Goes into a Dun and Bradstreet Credit Rating?

The various scores and ratings are based on data that they receive from a number of places. The first source is the business itself, but they also tap into public records. A business must submit a financial statement to D&B before they can have a full rating. In the absence of that, a limited rating will be issued based on number of employees. For example, the rating would be 1R if the business has 10 employees or more, and 2R if they have less than 2 employees.

A composite credit appraisal may also be available in the absence of a financial statement. A business is only eligible for a rating up to a 2 in this case however. They are ineligible for a 1 rating without a financial statement.

In addition to self-reporting financial statements, you can self-report trade references to D&B, which makes it easier to build business credit faster. You will need a DUNS number to have a credit report with them at all, but that is free and easy to get on their website.

Dun and Bradstreet and the Commercial Credit Score

The commercial credit score is the term used to describe the actual business credit score. It has three separate parts, and each predicts how likely the business is to default on bills or become delinquent. Following are the three parts and the scales by which they are ranked.

Commercial credit score

Measured on a scale of 101 to 670, it predicts the probability of a company becoming delinquent. A score of 101 is most probable, so that’s bad. A score of around 500 is good.

Commercial credit percentile

This is measured on a scale of 0 to 100. It measures the probability of delinquency as well, but against other companies in the Dun and Bradstreet system. A score of 1 is the highest probability compared to other businesses in the system, and most say a score of 80 is good.

Commercial credit class

This is a method of dividing businesses into classes based on the probability of delinquency. Companies in class 1 are the least likely to be delinquent. If you are in class 2, that’s good.

Who Are the Other Characters?

In this great show of business credit reporting agencies, it can be easy to forget there are other players when Dun & Bradstreet seems to shine so bright. There are, however, other agencies that offer business credit reports.

Equifax

They collect their information in ways not unlike Dun and Bradstreet, including: information from public records, financial data from the business, and payment history from creditors. In addition, they factor information about credit utilization, or how much credit a business is currently using versus how much they have available, into their calculation.

They then use the information collected to generate various scores. These scores include the business credit risk score and the business failure score. The business credit risk score measures how likely it is that a business will become 90 days or more delinquent on bills over the next 12 months. It ranges from 101 to 992. The business failure score ranges from 1,000 to 1610, and it predicts how likely it is that the business will file for bankruptcy over the next year. The lower the score, the higher the risk.

Another score they offer is the business payment index. This is their version of the D&B PAYDEX, and it even runs on the same scale, 0 to 100. It indicates payment history over the past year. Different from the PAYDEX however, you have to reach a score of 90 or higher for it to be a “good” score.

Equifax also offers business identity reports that serve as confirmation that a company actually exists. It also verifies details such as the company’s tax ID, number of employees, and yearly sales.

Equifax does not allow business owners to request a report on their company. They decide themselves when to start a credit file on a specific company.

Experian

Experian’s credit ranking, Intelliscore, uses more than 800 variables to predict a company’s risk of defaulting or becoming delinquent. A 76 or higher is considered good with Intelliscore. That indicates a low risk of late payments or default. A score from 51 to 75 indicates a low to medium risk and 26 to 50 indicates medium risk. From 25 down 1 is medium high to high risk.

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Intelliscore is considered a blended score of both the business and business owner’s information. It offers insights into a business’s public record findings, collections, payment trends, and overall business background. A major difference between Experian and the other two characters is that they do not ask businesses to self-report at all. Rather, they collect all the information themselves. Since it includes personal information, you do have to give permission for a lender to view this report.

Specifically, the Experian credit ranking gives insights into a company’s payment trends, public record filings, collections, and general business background. The result is a blended score calculated using both the business and business owner’s information.

The Experian Database and Credit Report Generation

Experian’s database has information on over 27 million businesses. Reports are generated with information from the database, which houses information on bankruptcy filings, payment history, collections, banking, insurance, and leases.

There has to be a minimum amount of information in the database about a business before Experian will generate a score for it. There must be at least one tradeline in the system, so you should definitely do business with a company that will report to Experian if you want to build business credit.

Applause or Rotten Vegetables: Which Credit Reporting Agency Really Matters?

All the players are important for this reason. You do not know, and cannot choose, which one your lender will use to base their decision upon. This means it is important to build strong business credit with each one. While a lot of this is out of your control, you can choose which starter vendors you work with. Since not all starter vendors report to all credit reporting agencies, you need to make sure you do business with a variety that report to each one. Then you can be on your way to building strong business credit.

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Profit from Amazon Prime Day Sales and More –10 Brilliant Business Tips of the Week

The Hottest and Most Brilliant Business Tips for YOU – Turn a Great Profit from Amazon Prime Day Sales and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! It’s that time of year – so we’re here to help you get Amazon Prime Day sales, and even more!

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!

#10. Closing Up Shop the Right Way

Our first jaw-dropping tip is all about something that’s a little bit negative. That is, it covers how to close a business and remain in compliance. And while your business will succeed (we certainly hope it will, and are here to help!), you’ll undoubtedly know some entrepreneurs who aren’t quite so lucky. So maybe pass this tip along to them, okay?

Because we know you’re going to be all right.

Score.org says it’s more than just shutting your doors one last time.

Wait, There Are Forms to Fill Out?

Now, do you remember when you got a license with your Secretary of State? It’s almost the same thing in reverse. That is, any business on its way out must file articles of dissolution. This is vital, as otherwise the state still thinks you’re in business. And that means they might come after you for fees in the future.

Similar to this is the advice to file an application of withdrawal. This is only for companies doing business in a state in which they’re not based. Similar to the articles of dissolution, you take this measure to avoid future fee assessments.

Therefore, if your business is in, say, New Hampshire, then you would probably need to file an application of withdrawal in neighboring Massachusetts. You may need to do the same for Maine and Vermont, too.

Note: for online sales, ask your Secretary of State and make sure you don’t miss any forms you may need to fill out for sales out of state and maybe even around the world.

Dot those I’s and cross those T’s!

#9. Advice for Managers Just Hatched

The next awesome tip is about how first-time managers can be best prepared. Succeed As Your Own Boss notes there is a major paradigm shift that goes on when you become a manager for the first time.

First-time managers are suddenly responsible for other people. And that can be daunting at first.

Perhaps our fave tip was to get your act in gear – and clean it up. As in, you’re setting expectations from the first moment of every day. So if you’re habitually late, then the time to cut that out is yesterday.

Of course this involves all sorts of other ways to behave professionally. It means not favoring people. And it also means getting off the office gossip train.

Get to Know Your Team

We also loved this tip. Your team is – shocking, we know! – composed of actual human-type people. This means they have ambitions and fears and weaknesses and strengths. They have histories and quirks and they just might have hidden talents. So don’t shut your door. Make sure you spend time getting to know them as more than just the people who help you get stuff done.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Amazon Prime Day sales can be yours.

#8. Your Brand Has its Own Personality – What’s Yours?

Our following life-changing tip concerns how to influence buyers with the power of your brand personality. Buzz Sumo tells us it goes past brand voice. Although to our eyes, the brand voice seems to be a large part of it.

What Does it Mean for a Brand to Have a Personality?

It goes beyond how you speak and write. It also has to do with aligning your words to your deeds. And it means your brand has values.

How so?

Have you been noticing various brands getting political? It doesn’t has to be big and in-your-face. Sometimes it’s as simple as teaching a trans son how to shave. Or it can be how REI actually closes its doors on Black Friday – because they’re all about getting people outside.

This isn’t about CEOs making gaffes and turning off a big percentage of their customer base. Well, not really. It’s more about how your brand shows empathy for your customers and prospects.

So if you own a salon, it could be about how anyone can be beautiful. Own a long haul trucking company? It could be all about love for the open road. So do a little thinking about what your brand can really mean. You might find you connect even better with your prospects and customers.

And that’s exactly what you want to be doing.

#7. Sell to the BIG Bosses

For our next sensational tip, we looked at how to sell to executives. Sales Hacker has all the details.

Our favorite tip was shamelessly stolen from Apple. That is, keep your presentations at or under 10 minutes. Yeah, really? Apparently it’s supported by neuroscience! But no matter what, we all know we’ve got shorter attention spans these days.

You know, squirrels.

So keep it short and sweet. Your audience has very little time! So you have got to respect their time, and their schedules. If you don’t, then you’ve just shot your presentation in the foot.

Don’t do that.

#6. Reach for the Sales Stars

This tip is so cool, and it works! Success Harbor notes there are ten great sales tactics that work. So get ready to increase your sales.

Our fave tactic is to consider branching out to new and different demographic groups. How so?

Let’s say your demographic is small, or it’s shrinking. If you’ve ever sold dial-up modems or tape recorders, then you know this all too well. So as you watch your demographic shifting, you’ll need to shift, too.

But the bottom line is: this entire article is fantastic and we highly recommend reading the whole thing.

After all, you want to sell more, right? Otherwise, er, what’s the point?

#5. Time to Get Some Amazing Amazon Prime Day Sales

Grab this mind-blowing tip while it’s hot!

It’s July, and you know what that means! Amazon’s annual event is just around the corner. So here’s how to get coveted Amazon Prime Day sales. Small Biz Trends says this amazing event is in its fourth year. And last year, merchants raked in a cool billion in sales! During just that one event.

So according to the source itself, Amazon Prime Day sales are on July 15 and 16, 2019. Yes, the ‘day’ is now two days long. You’ve got the chance to get twice as many Amazon Prime Day Sales!

So, what are you waiting for?

Prepare and Prepare, and then Prepare Some More – Did We Mention You Need to Prepare?

Getting ready for Amazon Prime Day sales isn’t just about tossing an ad out there. It’s about things like getting your inventory ready, and making sure you’ve got the right kind of selling account.

Our favorite tip was one we feel a lot of entrepreneurs might overlook. And that is to set aside a larger budget for keyword advertising. Price per click is bound to go up now – everyone wants in on Amazon Prime Day sales! So a bit of getting ready for Prime is just to abide by that old adage – you’ve got to spend money to make money.

And by the way, if your company doesn’t sell on Amazon, you can still take advantage of Amazon Prime Day sales as a buyer. And be sure to use an Amazon business credit card! They report to both Dun & Bradstreet and Equifax. And we just so happen to offer them through our Business Finance Suite.

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Amazon Prime Day sales can be yours.

#4. When Can We See Each Other?

Check out this spectacular tip, all about scheduling software. Join Home Base tells us there are seven terrific players in this space (as of the writing of this blog post).

Consider how your schedule is put together. Does an assistant help you? Do you do it on your own? Either way, it can be kind of time-consuming. Not to mention all the back and forth.

Tuesday? No, wait, that’s when I take the kids to soccer. Friday? Nope, it’s the sabbath. Monday? I’m booked solid.

You get the idea. So with scheduling software, the back and forth is virtually gone. Customers and prospects just choose the time and date they want and that’s that. And if they change their minds, or something comes up, no problem! With scheduling software, they can just fix the issue on their own and, for the most part, you don’t have to be a part of it at all.

Whew!

#3. Online? Make Your Home-Based Business Stand Out There, Too

It’s not your imagination: this winning tip can turn your home-based business into something to be reckoned with online. The Self Employed has the details. Some of this may be familiar. But it certainly bears repeating.

A Pro Website is a Must

We love this tip because we tell new business owners to do this. All. The. Time.

A professional website makes a difference when it comes to credibility and sales. These days, there really is no excuse to not have a pro website. Seriously. Go to Upwork or Fiverr and get help with design and you can be up and running in no time.

And a non-professional website? It’ll cost you in sales. Would you want to do business with someone who couldn’t even be bothered to make their website user-friendly?

And don’t get us started on businesses with no online presence. Don’t. Just, don’t be that business.

#2. The Change in Your Couch Cushions Just Won’t Cut it Anymore

Our second to last unbeatable tip can give you a new perspective on how to smartly finance your startup. Young Upstarts notes there are some great, outside-the-box ways to fund a startup company. We also recommend grants and crowdfunding. And there’s a special place in our hearts for angel investors and venture capitalists. Plus, of course we think business lines of credit and microfinance are fab.

But Forex trading? Seriously?

What an interesting idea! Foreign currency trading isn’t for everyone. And, it should go without saying, you need a reputable, licensed broker. But it can all be done online. And, once you get good at it, it can be truly help you raise the capital you need to start and run a business.

Pretty cool, eh?

#1. Follow Up and Follow Through

We saved the best for last. For our favorite remarkable tip, we focused on terrific emails you can write to follow up – and get results! Sumo says there’s an art and a science to following up. And you absolutely should follow up – you can raise response rates that way!

Consider this – how busy are you? How busy are all of us these days? If you’re like your intrepid blog writer, then you barely have 2 free minutes to rub together. And you see tons of content all the time. As in, blog posts, music, newspapers, videos, heck, even billboards. Messaging is everywhere!

So things fall through the cracks. Following up gets your product or service back to the top of your prospect’s inbox. And it gives you a chance to be personable. It even gives you an opportunity to address concerns and objections.

We highly recommend checking out this article in its entirety. Yes, it’s that good.

So which one of our brilliant business tips was your favorite? And which one will you be implementing now?

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Amazon Prime Day sales can be yours.

The post Profit from Amazon Prime Day Sales and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

Enjoy the Independence You Fought For: 5 Options for Veterans Business Loans

Find Veterans Business Loans to Run a Business and Be Your Own Boss

Our founding fathers adopted the Declaration of Independence on July 4, 1776. Since then, thousands of men and women have fought to maintain that independence for our country. Now home, those that fought should enjoy some of that independence. One of the best ways to do that is to be your own boss. Run your own business. Veterans business loans can help you do just that.

Where are these veterans business loans? How do you find them? When you do, how do you get them? You’re in luck! That is just what we are going to tell you. Some of the following are specifically veterans business loans. Others are loans for anyone, but they tend to work especially well for veterans.

Best Veterans Business Loans

These are our top picks for veterans business loans.

1. Military Reservist Economic Injury Disaster Loan Program (MREIDL)

If someone necessary to the business is called into active duty, this is the first place to go for veterans business loans. The Military Reservist Economic Injury Disaster Loan Program (MREIDL) offers loans up to $2 million to qualifying businesses. Funds are meant to help cover operating costs that can’t be met due to the loss of a necessary worker called to active duty in the Reserves or National Guard.

2. Boots to Business and Boots to Business|Reboot

Boots to Business is the 2-step entrepreneurial program offered by the Small Business Administration on military installations around the world. It functions as a training track of the Department of Defense (DOD) Transition Assistance Program (TAP). This is a great resource for tracking down and qualifying for veterans business loans.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

3. Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE)

The Veterans Women Igniting the Spirit of Entrepreneurship (V-WISE) is an SBA funded program. It is offered by the Institute for Veterans and Military Families which includes online training. There is also a conference that utilizes the spirit of female veterans and female military spouses. In addition, mentoring is available.

4. The National Center for Veterans Institute for Procurement

The National Center for Veterans Institute for Procurement extends the entrepreneurship training offered in TAP to veterans of all ages in their communities.

4. SBA Veterans Advantage

SBA Veterans Advantage guarantees loans approved to businesses operated by veterans or military spouses.

5. Other SBA Options

In addition to those already mentioned, the Small Business Administration offers many sources of guidance and funding for veteran owned small businesses.

● Veterans Business Outreach Center (VBOC)

The Veterans Business Outreach Center (VBOC) furnishes entrepreneurial development solutions including business training, guidance, and mentoring for qualified veterans operating or considering launching a small business.

● SBA Express

The SBA Express program is a fantastic loan program for veterans. You can get approval for a loan for up to $350,000. Get rates of 4.5-6.5%. Lines of credit are available for 7 years. You will not need to offer any collateral for up to $25,000, and turnaround time is 36 hours.

● Leveraging Information and Networks to Access Capital (LINC)

The Leveraging Information and Networks to Access Capital (LINC), an online matchmaking service, connects business owners to nonprofit lenders. These lenders supply free financial advice and specialize in microlending and smaller loans. This is the SBA Community Advantage program, and you can learn more about it here: https://www.sba.gov/sites/default/files/files/CA-Participant-Guide-4-December-28-2015.pdf

● 7(a) Loan for Working Capital

You need 3 years’ worth of business tax returns, credit that’s not too bad, and collateral for 50% to 70% of what you need to borrow to qualify for this loan.

● SBA 504 Loan Program

This program offers business real estate financing.

In addition, the SBA Office of Veterans Business Development offers a broad range of programs and services to sustain and encourage future and existing veteran business owners and military spouses.

Alternative Lenders Are an Option

Finally, if you still need more funding, or if none of the above options will work for you, try alternative lenders. Business owners with decent personal credit and income tax returns for 2 years that show a profit can usually get approval. You could have rates of 7% or lower. Lenders will want to see some kind of profit on your tax returns.

No Matter What, Build Business Credit

Regardless of whether you qualify for a traditional loan, veterans business loans, or alternative lending options, you need to be building business credit. It is the best thing for your business.

Small business credit is in the business name. It doesn’t lead back to the business owner’s personal credit. In fact, a business owner’s business and consumer credit scores can be very different. For this reason and many more, business credit is vital to the life of a business.

Why Build Business Credit?

Because company credit is separate from personal credit, it helps to safeguard a business owner’s personal assets. They can survive even if there is a problem with the business.

Personal credit scores are dependent on payment history. Not only that, but other factors like credit utilization percentages matter as well. Due to business purchases being much higher than personal expenses by nature, and personal limits much lower than business card limits, you can max out limits quickly using personal cards for business transactions. That skyrockets your credit utilization percentage. For that reason, your personal score can suffer if you use personal cards for business even if you make your payments on time.

How to Establish and Build Business Credit

Growing small business credit is a process, and it does not occur automatically. A corporation has to actively work to establish corporate credit. It is not hard, however, as long as you follow and trust the process.

Due to the fact that the process builds on itself, performing the steps out of order will lead to repetitive rejections. Nobody can start at the top with business credit. For example, you can’t start by applying for store or cash credit from your bank. If you do, you’ll face rejection 100% of the time.

Make your Business Appear Fundable

First of all, you must make your business appear to be a fundable entity that is separate from yourself. Here’s how:

Your business needs a professional-looking website and email address. The website should have the same URL as the business email, and the email should not be from a free service. Yahoo and Gmail are not acceptable business email platforms.
In addition, company telephone and fax numbers ought to have a listing on 411.com. They both need to be from a toll-free exchange and not your personal numbers.
You need a separate business bank account. Run all business transactions through it. Not only will it help separate your business from yourself, but it will make your life a lot easier

come tax time.

Speaking of Taxes and the IRS

Visit the IRS website and get an EIN for the business. It will be free. You also will need to formally incorporate. That means choosing to become a corporation, s-corporation, or LLC. In addition to separating your business from yourself, you will gain some protection for your personal assets. The level of protection will vary, as will the cost, based on the option you choose.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Dun & Bradstreet

Dun & Bradstreet is the most commonly used business credit reporting agency. Head to their website and obtain a totally free DUNS number. A DUNS number is how D&B gets a small business into their system to generate a PAYDEX score. If there is no DUNS number, then there is no PAYDEX score.

Apply for Accounts in the Vendor Credit Tier

The vendor credit tier is composed of vendors that will offer net invoice terms. They do not require a credit check, and they report payments to the business credit reporting agencies. You can buy things from them that you use every day, like shipping boxes, outdoor workwear, ink and toner, and office furniture.

Net accounts need to be paid in full based on their terms, usually 30,60, or 90 days. This is in contrast to revolving accounts, where you can make payments. If you pay your net accounts on time with vendors that report, your business credit profile will be opened.

It is important to remember that not every vendor does this. Certain vendors known as “starter vendors” make up the vendor credit tier and can help you build business credit. These are merchants that will grant an approval with very little effort. You also need them to be reporting to one or more of the big three credit reporting agencies (CRAs): Dun & Bradstreet, Equifax, or Experian.

Moving On: The Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the credit reporting agencies, then move onto the retail credit tier. These are businesses such as, Office Depot and Staples, offer credit for their stores only. They will have more of the things you need to run a business.

Use your SSN and date of birth for identification purposes only and not for guaranteeing the credit.

Just Keep Climbing: Fleet Credit Tier

After another 8 to 10 accounts are reporting, it is time to move to the fleet credit tier. These are service providers such as BP and Conoco. Use this credit to purchase gasoline and maintain vehicles. Again, use your SSN and date of birth for identification purposes only and not for guaranteeing the credit.

Top of the Mountain: Cash Credit Tier

If you are responsible for managing your credit up to this point, you can move on to the cash credit tier. These are businesses like Visa and MasterCard. Remember, your SSN and birthdate should not be used to verify credit, though they may be required for identity verification.

Stay on Top of Your Business Credit

Furthermore, after you have business credit, you need to stay on top of it. Make sure it is being reported and take care of any errors as soon as possible. Get in the practice of checking credit reports and digging into the specifics, not just the scores. Update the relevant information if there are errors, or if the details are incomplete.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you with each of them directly. See: https://www.creditsuite.com/business-credit-monitoring.

Repair Work

Errors in credit reports can be corrected, but the credit agencies normally have a set way they want you to do it.

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Disputing credit report mistakes usually means you mail a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Send copies instead.

Fixing credit report inaccuracies also means you precisely detail any charges you challenge. Do so in writing and make your letter is as clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

Another benefit of credit monitoring is that you will know how many accounts are reporting from each credit tier. Therefore, you will know when to move on to the next tier.

Always use credit carefully. Do not borrow more than what you can pay. Keep track of balances and deadlines for repayments. Paying on time will do more to increase business credit scores than just about anything else.

A Final Word on Veterans Business Loans

There are Veterans business loans out there. In addition, there are other fantastic loan options that can work well for veterans, despite not being specifically designed for them. This funding can help you gain independence in your work life by giving you the funding you need to start and run your own business.

Above all however, you need to build credit for your business. This is simply one more step toward running your own business and gaining your independence. We appreciate that you fought hard for our country, and now we want to fight hard for you. We can help you through the business credit building process. Visit www.CreditSuite.com to find out more.

The post Enjoy the Independence You Fought For: 5 Options for Veterans Business Loans appeared first on Credit Suite.

UK Finance for Business

UK Finance for Business In UK financing for service can be obtained from various resources. UK money for renting a business or company, UK money for financial obligation collection, UK money for Venture Capital can likewise be set up. UK Finance for equipment financing for the details innovation service is additionally offered in business. If …

How to Set Up a New Business in Idaho

Starting a Business in Idaho

A new business in Idaho is in reach. Have you been wondering: just how do I start a business in Idaho? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Idaho during a recession?

A New Business in Idaho: Pros and Cons

Business Insider put Idaho in the middle set of ten states to start a new business in, per a 2016 article. And this is for the whole nation. But its per capita GDP damages its position on the list. The education level and the availability of employees are both on the low end, too. But the state has the third cheapest cost of living. It also has the sixth best opportunity share of new entrepreneurs in the country.

Recent Upswing?

In a 2018 article, Forbes put Idaho at its somewhat covet-worthy 14^th spot. But also in 2018, Fit Small Business put Idaho at number 24.

Keep in mind, naturally, the three sites have differing methodologies.

Forbes gives Idaho high praise for its economic climate and regulatory environment. The state also does well when it comes to growth prospects, with above an average labor supply.

Fit Small Business does give Idaho high marks for access to capital (sixth in the nation). Cost of living and quality of life also rank well. But it’s below average for labor market, a measure of location desirability and percent of people with bachelor’s degrees. Hence there may be workers available, but they won’t do so well in more technical disciplines (unless you are willing to pay for continuing education). Plus they ranked Idaho dead last for startup activity.

If you’re starting a trucking business in particular, Idaho could be right up your alley.

A New Business in Idaho: DBAs

For sole proprietors not wishing to have their business’s name be the same as their own, a DBA (“Doing Business As”) status makes a lot of sense. In Idaho, it is called an assumed business name. The proper forms are with the Idaho Secretary of State website.

Start a New Business in Idaho – Idaho Top Industries

According to Idaho Commerce, the biggest industries in Idaho are aerospace, recreation technology, and energy. More top Idaho industries are advanced manufacturing, and computer technology and innovation. Also, these are top industries in Idaho: shared services, food production, and travel.

Smart business owners can take advantage of the bigger industries in the area by offering goods or services such as trucking for any industry. They can also offer catering, hospitality, and transportation. Another option is computer services and repairs. Yet another idea is technological innovations, among others.

Here is exactly how to start a new business in Idaho.

Idaho New Business Secretary of State Requirements

Register a Business Name

Business names in Idaho must have a registration with the Idaho Secretary of State. Find and download the application to reserve a corporate name online at Reserve ab Idaho Corporate Name on the Idaho Secretary of State website. There is a $20.00 filing fee to reserve a corporate name. A business owner must submit the name reservation application form to the office of the Secretary of State in Boise.

There are special naming requirements for Idaho corporations. To incorporate a small business in the state of Idaho, the corporate name that a business owner chooses must include the word “corporation,” “incorporated,” “limited,” “company”. Or it can include an abbreviation of any one of these words.

Business Permits and Licenses

A website run by the state, called Idaho Biz Help offers a “Business Wizard”. It has a quiz to help you determine which licenses you need.

Local Permits and Licenses

Idaho Biz Help also keeps a directory of all the Idaho City and Idaho County Clerk or Recorder offices.

Start a New Business in Idaho – Business Registration

Information and forms are with the Idaho Secretary of State.

A vital part of preparing to incorporate a small business in the state of Idaho is choosing a registered agent for the corporation. A company’s registered agent acts as an agent for service of process. They will also be responsible for receiving legal and tax documents for the corporation. A business owner may want to look into using the registered agent services of a corporate service company.

There are various corporate service companies which provide registered agent services for a fee. Go to Idaho Corporate Register Agent on the Idaho Secretary of State website to find more information about companies that provide registered agent services.

Tax Registration

Idaho Biz Help also has information about taxes. You must register with the State Tax Commission.

Virtual Office

Alliance does not offer virtual office space in Idaho, not even in Boise.

Regus, however, has Idaho virtual business offices in Boise, Nampa, and Meridien.

For other areas of the state, business owners might want to seek out local business owners. Or they could possibly try computer user groups to get help in this area.

Another option may be to seek virtual business office space in neighboring states. These are Montana, Nevada, Oregon, Utah, Washington, and Wyoming.

Start a New Business in Idaho – Build Business Credit

Business credit is credit in a business’s name. It doesn’t attach to a business owner’s personal credit, not even if the owner is a sole proprietor and the solitary employee of the business.

Thus, an entrepreneur’s business and individual credit scores can be very different.

The Benefits

Because small business credit is distinct from personal, it helps to secure an entrepreneur’s personal assets, in case of court action or business bankruptcy.

Also, with two separate credit scores, a small business owner can get two separate cards from the same vendor. This effectively doubles purchasing power.

Another advantage is that even startups can do this. Visiting a bank for a business loan can be a formula for frustration. But building company credit, when done right, is a plan for success.

Consumer credit scores depend on payments but also other factors like credit use percentages.

But for small business credit, the scores actually only depend on if a business pays its bills promptly.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The Process

Building business credit is a process, and it does not happen without effort. A company must proactively work to establish company credit.

That being said, it can be done readily and quickly, and it is much swifter than establishing personal credit scores.

Vendors are a big aspect of this process.

Carrying out the steps out of order will cause repetitive rejections. No one can start at the top with small business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Start a New Business in Idaho – Business Fundability

A company has to be fundable to loan providers and merchants.

Hence, a company will need a professional-looking website and email address. And it needs to have website hosting bought from a company like GoDaddy.

And, company phone and fax numbers should have a listing on 411.com.

In addition, the business phone number should be toll-free (800 exchange or similar).

A business will also need a bank account devoted only to it, and it has to have every one of the licenses essential for operating.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Start a New Business in Idaho – Working with the IRS

Visit the IRS website and acquire an EIN for the company. They’re free of charge. Select a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will most likely wish to switch to a kind of corporation or an LLC.

This is in order to decrease risk. And it will make best use of tax benefits.

A business entity will matter when it concerns taxes and liability in the event of a lawsuit. A sole proprietorship means the owner is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

If you run a business as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the company name. Consequently, you can wind up being directly responsible for all small business financial obligations.

In addition, according to the Internal Revenue Service, using this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 probability for corporations! Prevent confusion and dramatically decrease the chances of an Internal Revenue Service audit at the same time.

Setting off the Business Credit Reporting Process

Start at the D&B website and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a company in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s web sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

This way, Experian and Equifax will have something to report on.

Vendor Credit Tier

First you ought to establish trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit in the retail and cash credit tiers.

These types of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But to start with, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are commonly Net 30, versus revolving.

Therefore, if you get approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts must be paid fully within 60 days. Compared to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To kick off your business credit profile the proper way, you need to get approval for vendor accounts that report to the business credit reporting bureaus. When that’s done, you can then use the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Makes Sense

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with hardly any effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may need to apply more than once to these vendors. So, this is to verify you are reliable and will pay on time.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move onto the retail credit tier. These are companies like Office Depot and Staples.

Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the business’s EIN on these credit applications.

One good example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or better.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move onto the fleet credit tier. These are service providers like BP and Conoco. Use this credit to buy fuel, and to repair, and maintain vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the small business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411 company telephone listing.

Shell might say they want a specific amount of time in business or revenue. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get approval.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Cash Credit Tier

Have you been sensibly handling the credit you’ve gotten up to this point? Then move to the cash credit tier. These are businesses like Visa and MasterCard. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One such example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or more. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Also, they want you to have an established business.

These are businesses like Walmart and Dell, and also Home Depot, BP, and Racetrac. These are usually MasterCard credit cards. If you have 14 trade accounts reporting, then these are attainable.

Start a New Business in Idaho –Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and attend to any mistakes ASAP. Get in the habit of checking credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for only $24/month. See: www.creditsuite.com/monitoring.

Update Your Records

Update the data if there are inaccuracies or the info is incomplete.

Start a New Business in Idaho –Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any errors in your records. Errors in your credit report(s) can be fixed. But the CRAs usually want you to dispute in a particular way.

Disputes

Disputing credit report errors normally means you send a paper letter with duplicates of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always send copies and keep the originals.

Fixing credit report mistakes also means you specifically detail any charges you contest. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

Start a New Business in Idaho –A Word about Business Credit Building

Always use credit sensibly! Don’t borrow more than what you can pay off. Track balances and deadlines for repayments. Paying off punctually and in full will do more to raise business credit scores than just about anything else.

Building business credit pays off. Great business credit scores help a company get loans. Your loan provider knows the small business can pay its financial obligations. They understand the business is for real.

The company’s EIN connects to high scores and loan providers won’t feel the need to call for a personal guarantee.

Business credit is an asset which can help your company in years to come.

Learn more here and get started toward opening a new business in Idaho.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.

The post How to Set Up a New Business in Idaho appeared first on Credit Suite.

UK Finance for Business

In UK financing for service can be obtained from various resources. UK money for renting a business or company, UK money for financial obligation collection, UK money for Venture Capital can likewise be set up.

UK Finance for equipment financing for the details innovation service is additionally offered in business. If you require info on UK money for devices leasing, home loans and also business financing after that you can come close to business like 1st Leasing Company as well as 1pm. For UK money from ₤ 5,000 upwards you can come close to business like 1pm.

UK Finance for firms in the details innovation field can obtain their funding choices from firms like Corporate Computer Lease Plc in UK. Such firms make IT extra cost effective and also you obtain the UK money for practically any type of modern technology invests.

Business like Corporate Business Finance fund you for Plant, Machinery as well as for various other company monetary solutions. Under such conditions you can come close to firms like these for UK money for your financing needs.

For brand-new begin ups it is hard to obtain money in UK or in other places. Many of the money business will certainly money just the recognized organisations. The group at Oak renting would certainly fund your start-ups as well as for any type of brand-new devices that you require.

Money for huge business is provided by UK financing firms like the Benington Securities. There are numerous firms that give UK money for also people. Firms like Troman money give funds for the people as well as tiny company companies.

UK financing for renting a business or company, UK money for financial debt collection, UK financing for Venture Capital can likewise be organized.

UK Finance for equipment financing for the info modern technology company is additionally readily available in business. If you require info on UK money for devices leasing, home mortgages as well as industrial financing after that you can come close to business like 1st Leasing Company as well as 1pm. UK Finance for firms in the details innovation field can obtain their funding alternatives from business like Corporate Computer Lease Plc in UK. Money for large business is provided by UK money firms like the Benington Securities.

The post UK Finance for Business appeared first on ROI Credit Builders.

Success in Houston, TX… $18,364.00 in Business Revenue financing!

How to Set Up a New Business in Kentucky

Starting a Business in Kentucky

A new business in Kentucky is in your reach. So have you been wondering: just how do I start a business in Kentucky? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Kentucky during a recession?

New Business in Kentucky: Advantages and Disadvantages

Kentucky comes out as the eighth worst state to start a new business in, per a 2016 article. And this is for the whole nation, according to Business Insider. This is despite thriving metropolitan areas such as Louisville.

One positive is that the state has a somewhat cheap cost of living. But its productivity score lags behind four fifths of the country. There also seems to be less market opportunity to start a business in Kentucky than in other states.

Recent Improvements

In 2018, Forbes lists Kentucky as its number 36. Also in 2018, Fit Small Business is in nearly perfect agreement, and clocks Kentucky in at number 35. Keep in mind, all three websites have differing criteria.

Forbes praises Kentucky for its better than average business costs and quality of life. The regulatory environment is slightly worse than the average. But the economic climate and growth prospects are somewhat worse than average. And labor supply is an abysmal 48^th for the nation.

Fit Small Business says Kentucky has a better than average cost of living and startup activity. But everything else is worse than average. The cost of starting a business and the labor market are in the worst ten. Labor market is a measure of the desirability of an area and the number of people with bachelor’s degrees.

Conditions in Kentucky have certainly improved. Although you may have some trouble with hiring, if you choose to start a new business in Kentucky.

Start a New Business in Kentucky – New Business in Kentucky: Programs

The “Kentucky Small Business Investment Credit” is meant to encourage job creation. This is by providing a nonrefundable state income tax credit to small businesses which hire one or more people. And/or they must invest at least $5,000 in qualifying equipment or technology. Most for-profit businesses with up to 50 full time employees are eligible.

Kentucky Reinvestment Act

The “Kentucky Reinvestment Act” program can help any company engaged in manufacturing and related functions within the commonwealth. Benefits are available for up to ten years. This includes tax credits equaling up to 100% of corporate income tax liability.

Kentucky Industrial Revitalization Act

Under the “Kentucky Industrial Revitalization Act, companies can get tax credits, Kentucky Corporation License Fee credits, and job assessment fees for up to ten years. These incentives can equal up to 75% of the cost of the rehabilitation or construction of buildings, along with refurbishing or purchasing equipment.

Here is precisely how to start a new business in Kentucky.

Kentucky New Business Secretary of State Requirements

Start a New Business in Kentucky – Register a Business Name

Choose a business name and structure at the Kentucky One Stop Business Portal.

A business owner must have a unique corporate name for their business to incorporate in Kentucky. Before a business owner can file to incorporate, they should be sure that the name they want is not already in use by another corporation.

They should conduct a thorough search of online records and other databases. To check name availability in Kentucky, go to the official website of the Secretary of State.

It is not necessary for a business owner to reserve the corporate name they want, but if they would like to reserve a name until they can file to incorporate, they can submit an application to the Kentucky Secretary of State.

Download the application online at Reserve A Kentucky Corporate Name on the Kentucky Secretary of State website. It costs $15.00 to reserve a corporate name. The name will then be reserved for a period of 120 days.