Why Startups Need Business Credit
Building a strong business credit file can give companies an advantage when it comes to accessing capital, closing deals, leasing office space, and more. Every business can benefit from business credit, but startups are in a unique position. We’ve created the infographic below to help entrepreneurs understand why it’s important to get serious about business credit on day one.
Why Is Building Business Credit Important for Startups?
Startups use business credit to tackle important challenges, including:
- Getting a Loan: Business credit can help you get funding to hire employees, buy equipment, cover gaps in cash flow (while working toward becoming profitable), or market your business.
- Establishing a Reputation: Your business credit file helps convey credibility and reliability to potential partners and customers.
- Getting Customers and Contracts: A strong business credit report can help you win business by showcasing your company’s ability to deliver or pay on time.
- Earning Favorable Terms and Conditions: Business credit can help you get more favorable contract and loan terms, giving you back precious capital to help run your business.
- Buying Insurance: Some insurance companies require their insured to maintain specific Dun & Bradstreet scores and ratings, which means your business credit can help you protect your company at every stage.
What Should You Do First?
Get your free Dun & Bradstreet D-U-N-S Number® to start building business credit. It is important that you get your D-U-N-S Number early on, as most companies looking to partner with suppliers will use the number to run your business credit. Apply for your D-U-N-S Number here.
After that, check out How to Build Business Credit to learn about the next steps.
When Should Businesses Start Building Their Credit?
Now! The more history in your business credit file, the easier it is for potential partners and lenders to recognize how credible your business is.
You may miss out on opportunities or contracts if you wait too long to get started with business credit, so be proactive and start building it before you need it.
Where Can You Go for Help With Business Credit?
At Dun & Bradstreet, business credit is at the core of what we do, and our services can help establish your business credit quickly. Get started by learning about the products below:
D&B CreditSignal®: Get free alerts to changes in your business credit scores and ratings*
D&B Credit Builder™: Start building business credit today
More questions? You can call a Dun & Bradstreet Credit Advisor at 1-800-701-7168
Photo Credit: Cheggy, Twenty20