The Basics of Business Credit

twenty20_8847153b-0521-4f27-9dc4-4c6e0ee739bbA company’s business credit file reflects a company’s perceived ability to make good on obligations according to the terms of its contracts. Each file is comprised of a series of scores and ratings, which are used by potential partners to make decisions on whether or not to give a company loans, provide desirable terms, or offer lower interest rates.

To help you better understand business credit, we’ll walk you through the basics and how you can use business credit to help you grow your business.

Business Credit vs. Personal Credit

What is business credit and how does it differ from personal credit? This video explains the primary differences between the two. Though there are similarities, there are fundamental differences that make understanding these two types of credit imperative.

Keeping Your Business Credit Separate

Using personal credit to grow your business may expose you to liabilities that can be avoided by separating your personal credit and business credit. This video highlights why separating your personal credit from your business credit as early as possible can be of benefit to your business.

Judging a Company’s Credibility

These days, the credibility of a business matters greatly. A strong business credit profile is necessary for companies striving to build credibility within their markets – a concept explored in the video below.

Scores & Ratings

D&B® scores and ratings give potential lenders, suppliers, and partners a window into the financial stability of your business. The video below provides some insight into how they do so.

Your Trade References

Trade references are an integral part of a D&B® business credit profile. Here we describe exactly how trade references may affect your D&B scores and ratings, and why they’re so important.

Help Improve Your Business Credit

You can to impact – and even help improve – your business credit. The video below explains how certain D&B® scores and ratings are constructed, and what you can do to possibly improve them.

Want More Info?

Now that you know more about the basics of business credit, check out our business credit guide that covers how your file can help you win contracts and get funding. If you have all the information you need, and are ready to get FREE alerts when there are changes to your business credit file, sign up for CreditSignal®.

Image credit: juliette_baderTwenty20