Using Business Credit to Build Your Construction Company
Whether your construction company is just getting off the ground or has enjoyed years of success, understanding business credit can help you fuel growth and manage risk. Building your company’s business credit is an important part of establishing a reputation as a reliable contractor. Keeping an eye on your partners’ credit files can help alert you to financial struggles that could spill over to your own business. The infographic below will help you understand why business credit matters to construction companies and how it can be one of the most important tools in your toolbox.
Business Credit for New Contractors
As a new company, you and your employees might not know that you should start building business credit as soon as possible. Laying the groundwork now can save you frustration down the line. As a new business owner, you’ll want to:
- Get your free Dun & Bradstreet D-U-N-S® Number: Many companies looking to work with contractors will use the number to run your business credit and might use information in your report to help them make decisions about your company. You can apply for your D-U-N-S Number here.
- Separate your business and personal credit: Establish a business bank account and pay bills in your company’s name to help establish a wall between your personal and business credit. You and your construction company should be distinct entities for the purpose of building business credit.
- Get notified on changes to your business credit file: Get alerts on changes to your D&B® scores & ratings for free with CreditSignal®*.
- Get customers/contracts: Check out our contracting guide for information on corporate and government contracting, as well as subcontracting and supplier diversity certifications.
How Business Credit Can Help Protect a Growing Company
As you expand your construction business, you’ll want to check out potential partners’ business credit reports, which may help you:
- Anticipate late payments or bad business debts
- Manage your cash flow
- Avoid working with high-risk companies
- Predict bankruptcy
When You’re a Major Construction Firm
You have numerous contracts, thousands of employees, and multiple offices, but you’re not through with business credit. You’ll want to help protect your company by monitoring partners’ business credit scores and ratings to help you:
- Make safer, smarter, proactive decisions
- Stay compliant by alerting you to potential noncompliance in your supply chain
- Anticipate disruptions in your supply chain
How Dun & Bradstreet Can Help Your Construction Company
We offer business credit products tailored to construction companies of all sizes. Choose from the selections below, or call a Dun & Bradstreet Credit Advisor at 1-800-701-7168 to learn more.
Starting Out? Build a strong business credit report with Credit Builder™ Plus.
Growing Your Business? Monitor your partners and manage risk with D&B Credit Reporter™.
A Major Player? Get in-depth data and analytics to help you protect your business with D&B Credit
Photo Credit: spacehalide, Twenty20