Do You Know About Business Credit?

 What is business credit? Business credit is set up in the business name and based solely on the credibility of the company. But do you know what's needed to get started? Do you know the building blocks to do to get started? Most companies out there are unaware of what I'm talking about but we show you the way to get started credibly.

The principle FICO rating utilized as a part of the business world is known as the Paydex score given by Dun & Bradstreet.

This number shows the risk of the business' ability to payback the terms of the credit or loan similar to that of the FICO score for personal credit.

The paydex score ranges from 0-100. The higher the score, the better the credit is for your company. The score is based on how the company pays of the debt and the promptness of the payment to the suppliers within the given timeframe to payback the debt.

Most lenders are looking for a score of 70 or higher but for best results, you should have at least an 80 Paydex score. Let me show you how the paydex score is created.

Payment Expectation

Expected payment may come early 100

Payments generally come within early payment discount period 90

Payment is prompt 80

Payment comes in 14 days beyond terms 70

Payment comes in 21 days beyond terms 60

Payment comes in 30 days beyond terms 50

Payment comes in 60 days beyond terms 40

Payment comes in 90 days beyond terms 30

Payment comes in 120 days beyond terms 20

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If your in business it's essential to have a high Paydex score and to establish new credit to continue building your business' credit to help you in obtaining limits that could exceed $100,000.

It should only take approximately 60 days to obtain an excellent Paydex score. It's very easy to do this and you should start by obtaining a DUNS number which is the equivalent to a social security number from Dun & Bradstreet.

When you obtain your DUNS number you next goal is to start requesting credit from companies that will report your credit activity to Dun & Bradstreet, Business Experian and Equifax.

Once these companies report your payment history, you will obtain that Paydex score to your business credit reports, specifically to Dun & Bradstreet, Business Experian and Equifax.

Your goal is to obtain credit from different creditors, use that credit regularly to help your company continue to grow it's scores. Make sure that you make your payments promptly and on time to assure that your Paydex score stays above an 80 for optimal results.

As you continue to make timely payments it will become easier to obtain credit in the business name.

About the Author:

Fred Livai is the CEO of Approve My Score, LLC.

At Approve My Score Fred specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for the business.

Fred is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.