Business Credit Decoded - Unlocking Your Business's Borrowing Power

1. INSERT YOUR LOGO HERE Business Credit Decoded

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3. Business Credit With business credit the Business builds its own credit profile and credit score

4. Business Credit The business can use its credit to qualify for credit cards and lines, even loans

5. Business Credit Benefits A credit profile can be built for a business that is completely separate from the business owner’s personal credit profile giving the business owner DOUBLE the borrowing power

6. Business Credit Benefits Business credit scores can be built fast as they are only based on timely payments

7. Business Credit Benefits Approval limits are 10-100 times higher on business accounts versus personal accounts

8. Business Credit Benefits When done correctly Business Credit can be built regardless of personal credit quality as there is no credit check

9. Business Credit Benefits Most business credit can be obtained without the owner taking on personal liability, or a personal guarantee

10. Business Credit Benefits Having established business credit increases chances of approval, approval amounts, and rates and terms

11. Business Credit Benefits Business Credit Saves Businesses

12. Business Credit Reporting Agencies The three major companies that collect business information and publish it are Dun & Bradstreet, Experian, and Equifax Business

13. Dun & Bradstreet • D&B is the biggest and major business credit reporting agency • They are publically traded company (DNB) with a headquarters in Short Hills New Jersey

14. DUNS Number The DUNS number is a nine-digit number issued by Dun & Bradstreet and assigned to each business location in the D&B database

15. DUNS Number More than 50 global, industry, and trade associations recognize, recommend, or require DUNS and so do many foreign governments including the US and Australia, European Commission, and even the United Nations

16. Dun & Bradstreet’s Score The main credit score used in the business world is known as a Paydex score, provided by Dun and Bradstreet

17. Paydex Score The Paydex score ranges from 0-100, with 100 being the best score a business can obtain

18. Personal Credit Scoring • Personal credit scores take time to build as they are based on 5 factors • Payment History 35% • Utilization 30% • Length of Credit History 15% • Accumulation of New Credit 10% • Credit Mix 10%

19. D&B Paydex Score • Business credit scores are based only on whether the business pays its bills on time • Expect payment may come early 100 • Payments comes within early discount period 90 • Payment is prompt 80 • Payment comes 14 days beyond terms 70 • Payment comes 21 days beyond terms 60 • Payment comes 30 days beyond terms 50 • Payment comes 60 days beyond terms 40 • Payment comes 90 days beyond terms 30 • Payment comes 120 days beyond terms 20 • Unavailable UN

20. Business Credit Scores • A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months • A consumer credit score is a mathematical model that is used to depict a consumers risk of going 90 days late on an account within the next 24 months

21. Experian Experian was formerly a division of TRW, an automotive electronics giant founded in 1901

22. Experian’s Intelliscore • Experian’s most recent score system is known as Intelliscore Plus • Offers a business score between 0-100, with 100 being the highest

23. Experian’s Intelliscore The 0-100 is a percentile score that reflects the percentage of businesses that score higher or lower than the specific business being looked at

24. Equifax • Equifax was founded in 1898 by Cator and Guy Woolford • Cator actually got the idea from his grocery business, where he collected customers’ names and evidence of credit worthiness

25. Equifax’s Credit Risk Score • Equifax’s main business credit scoring model is the Credit Risk Score • Credit scores range from 1-100, with a lower score indicating a higher risk of serious delinquency

26. Business Credit Building A business starts building a brand new credit profile much the same as a consumer does

27. Step 1 of Business Credit Building- Establish Credibility Before applying for business credit a business must insure it meets or exceeds all lender credibility standards

28. Business Credibility 411 • Legal business name including DBA • EIN registered • Business address • 411

29. Business Credibility • Phone and fax numbers • Website and email address • Bank account • Licensing

30. Step 2- Obtain Business Credit Reports Business Credit reports are offered by Experian, Dun & Bradstreet, and Equifax

31. Step 3- Obtain Vendor Accounts Secure 5 vendor accounts without using your SSN, and wait 90 days

32. Step 4- Obtain Revolving Accounts Secure 5 revolving business credit accounts starting with store cards

33. Grow Your Business Credit It is essential to keep using the credit, keep applying for more, and talk with credit providers to raise credit limits

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