Build Your Construction Company by Building Your Business Credit
Construction companies stand to benefit from strong business credit scores and ratings. Whether you’re seeking capital or pursuing contracts, a history of responsible financial behavior can open new doors. We’ve created the infographic below to help construction firms understand how building business credit can overcome common obstacles to growth.
How Business Credit Can Help Construction Companies
A construction company’s business credit file helps lenders, potential clients, and insurers understand the risks involved in working with a company. A strong business credit file can help you with:
- Funding: Construction companies may find it easier to get short-term loans to cover expenses until invoices are paid. Access to capital can also help grow your company and meet rising demand.
- Insurance: Some insurance companies require their insured to maintain specific Dun & Bradstreet scores and ratings.
- Contracts: A construction company with a stellar business credit file may appear more reliable to potential partners. When building business credit, each positive experience is another step toward winning more contracts.
- Getting Better Terms and Conditions: Have more funds available at lower interest rates or with additional time to repay debts.
- Managing Risk: Construction companies can monitor other businesses’ credit reports to protect themselves from late payments or bankrupt partners.
Challenges Facing Small Businesses
Here’s what business owners are saying about some of the issues facing their companies:
- 20% said lack of available capital was the biggest challenge affecting the growth and success of the business.
- 60% of those surveyed said it was moderately to very difficult to become a federal contractor.
- 41% of small businesses are unable to grow because of low access to capital.
- 11% are unable to increase inventory to meet demands.
Business credit is a powerful tool that can help address these concerns and remove obstacles to growth.
How Construction Companies Can Build Business Credit
The first step in establishing your company’s credibility is to get a free Dun & Bradstreet D-U-N-S® Number. This unique identifier will follow the business throughout its lifetime, allowing relevant information to be attached to your record. Once you have a D-U-N-S Number, visit our Business Credit Guide for more tips.
Photo Credit: mariopalufi94, Twenty20