Why Suppliers & Contractors Need Business Credit
Every company can benefit from building a strong business credit file, but it’s especially important for suppliers and contractors. Your company’s business credit scores and ratings tell a story about financial responsibility and risk – both of which are important to potential customers, landlords, insurers, and other partners. Take a look at the infographic below for a deeper look at business credit for suppliers and contractors.
Why Should Suppliers and Contractors Pay Attention to Business Credit?
If you’re wondering whether it’s worth investing time and effort into building and maintaining your business credit file, the answer is “yes.” Why? Because business credit can help a company get:
- Contracts: A strong business credit report helps you appear trustworthy and reliable to potential business partners.
- Funding: Like business partners, lenders are looking for reliable businesses. Getting a loan or line of credit could help your company cover gaps in cash flow and meet increased demand.
- More Favorable Terms and Conditions: You can benefit from lower interest rates and longer repayment periods if your business has a history of responsible financial behavior. You can get back precious capital to help you grow.
- Insurance: A strong business credit file may result in a better deal on insurance, helping to protect your company at every stage.
How Can Suppliers and Contractors Get Started with Business Credit?
First, get your free Dun & Bradstreet D-U-N-S® Number. This identifier will stay with you for the entire lifetime of the business. It’s 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. It’s easy and free to get a D-U-N-S Number.
Next, you’ll want to build your business credit. We can help – visit our How to Build Business Credit Guide for details.
When Should You Start Building Business 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 if you wait to get started with business credit, so start building it before you need it.
Did You Know?
Here are four statistics that demonstrate the importance of building a strong business credit file:
- 60% of small business owners surveyed said it was moderately to very difficult to become a federal contractor
- 41% of small business owners are unable to grow because of low access to capital, and 11% are unable to increase inventory to meet demands
- 11% of small business owners said the terms on their outstanding bank loans have worsened over the past 12 months
- More than 1 in 5 subcontractors are given less than one week to make changes to their existing contracts
Where Can You Go for Help?
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 with one of the options below:
D&B CreditSignal®: Get free alerts to changes in your D&B 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: duangbj, Twenty20