If your suppliers have your D & B number & report to D & B, you’ll begin to build a credit history and eventually establish a Paydex score. As with a personal credit score, you build a solid Paydex score by staying current on your payment terms with your creditors.
Having a good business credit score does not mean you can let your personal credit score slide. Small businesses are judged on both the owner’s credit and the business’ credit when being evaluated by banks and financial institutions. The best credit management practice is to keep your balances low on both business and personal credit lines.
The way to get into the D & B system is to apply for a D & B number. If you don’t already have one, you can get one for free. It takes about 30 days and arrives snail mail. If you are applying for a government contract, you can get an expedited one online for free.
If you are thinking of doing work for the federal government or applying for a federal grant, you’ll need to have a D-U-N-S number issued by Dun & Bradstreet. This number is the reference number that Dun & Bradstreet assigns to your credit and business file. It’s commonly known as a D & B number.
Most banks and many of your suppliers or vendors will also use your D & B number to pull credit references for your business. If you don’t have a number, you can get one online for free.
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