When starting a business, owners should take steps to build their business credit. There are important steps to take on day one.
Sales and Credit Build a Business
Business plans offer an operational roadmap for the entrepreneur. Many new business owners will spend time defining the operations of the business. At least an equal amount of time should be spent on the sales and credit plans.
Sales are probably the most important factor that determines the success of a small business. Revenue from sales will be needed to meet operating expenses, and eventually to deliver a profit to the business owner. Credit will also be needed when sales are made.
Business-to-business transactions are often completed with credit. A vendor will deliver a product or service your business needs, and invoice your business for payment. This type of financing activity is an important factor in business credit scores. While it may be difficult to obtain credit at first, even for small transactions, it is possible.
Start Building Credit With Expert Assistance
Because credit is so important to a business, owners should consider getting help to create a credit file as soon as they start building their business. Small Business Starter™ is a service offered by Dun & Bradstreet that could help your business quickly create a business credit file and have an accurate credit history from the time your business pays its first invoice.
With this service, you will enjoy expedited service in establishing a file, allowing you to obtain a D&B D-U-N-S® Number in less than five days. That number can help you begin documenting your business credit in your D&B credit file, and demonstrate your company’s financial stability to creditors and suppliers.
You will also be able to customize your company’s online profile on the D&B Credibility Review, which can help promote your business with a business description, logo, video, and photos. The listing can enhance your rank on major search engines, and offers a tool to let you keep customers informed with optional Twitter, LinkedIn, and Yelp feeds.