Business growth depends on increases in sales and additional support from suppliers. This growth could lead to more credit access.
Credit References Are Partners in Success
Many business owners believe that access to a business loan from a bank could help them to grow their business. This may very well be true, but it may also be very difficult for a small business to secure bank financing. Banks may consider a small business to be a high risk loan until the business has developed an operating history over several years. As the business owner works towards this goal, smaller sources of credit may be available.
Each sale a new business makes will often lead to a need for raw materials to be used in the manufacturing process, replenishment of inventory for a retail operation, or the delivery of services that the business offers in a value-added manner to customers. These transactions will often be completed with the supplier invoicing the business for payment.
Suppliers are also known as trade references*, and most businesses will provide details on their experience with customers to credit reporting agencies. In this way, those small transactions become the raw data used in the calculation of a small business credit score.
Monitor Business Credit to Follow Your Business Growth Path
Business owners should consider CreditMonitorTM as a solution that allows them to stay on top of their credit score. This service allows you to access your D&B® scores and all of the ratings that are maintained on your business. With this service, you can establish your business credit history, and be able to determine the likelihood of receiving funding or contracts.
This information will allow you to anticipate reactions from current partners and lenders, and you will gain insight into the factors that impact your business credit. Data is also provided so that will know where your company stands compared with industry averages, and you will be able to use this data to help you manage growth.
*Trade References will be added subject to D&B® verification and acceptance. Please see http://www. dandb.com/glossary/trade-references/ for eligibility, process and other information regarding Trade References.