Building Good Business Credit for Minority Business Owners (Final Part 2)

I provided alot of information in my last blog to lay the foundation for building solid business credit. The next step is what can be done to build correctly and avoid the stereotypical issues and wasted money. My first recommendation is to establish a profile with experian business.

Smart Creditors are starting to become more and more aware of the tactics used in building D&B paydex scores. For this reason, larger companies and banks are leaning on the credibility of experian business than ever before. It would be wise to contact experian business and check your score. If you don't have a score, then properly register your business with experian business online. 

Next, ask creditors in advance which reports do they pull to determine credit. So, it would be to your advantage to build credit in both places (D&B/Experian Business).

TIPS FOR ACTION: Business Credit helps you lay the financial foundation of your company. Once ruined, you almost always have to start over in a new company name. It's true that you can dispute bad information. And it may be removed "temporarily". But the negative information will continue to loom in the background of your "stressors and statistical data". The type of business you decide to start can make or break your report without you knowing it. Selecting highly profitable and growth industries is key to avoiding this automatic red flag on your business credit. Being a corporation (S Corp, C Corp, LLC, LLP etc) is essential. Maintaining annual registration on your corporation is essential.  Having the appropriate business licenses paid and updated on an annual basis is important. Creating a financial statement certified by a CPA and having it added to your business credit report is mission critical. Choosing the right creditors to work with is the game changer. Know whom you are seeking credit from.......interview them and ask questions. 

Finally, stop paying for these services and take the time to do it yourself. Don't have the time? Have your office manager, accountant or some other reliable internal source help you get things started. Register your company with Experian Business & know your creditors. The bulk of what you need to know and how to get started can be found at http://www.experian.com/small-business/services.jsp (view the links at the bottom of the page).

The Experian Business site has a ton of FREE information on properly starting and building business credit and can answer most of your detailed questions.Let me know how this helps you by following me on twitter @FilmWorksCEO  or  http://swandriasimpson.brand-yourself.com/