What Is Business Credit?
Your business credit record is the primary way that companies evaluate whether to do business with you – and on what terms. Companies rely on your business credit worthiness to make critical decisions, including whether:
To sell to you
To lend you money
You are viable as a partner
To lease the equipment you
need to grow your business
To help you carry more inventory at competitive prices
To give you favorable financing rates and terms
You stack up favorably against other companies competing in your market space
Business credit includes a variety of data points about your business, such as the date it started, the skills and experience of your top leaders, the number of employees, and annual sales. This type of information is listed in your business credit profile, along with scores and ratings that are derived from your business’s past behavior to predict its future behavior. For example, your ability and willingness to pay your bills on time in the past are factored into your ability and likelihood of paying your bills in the future.
Why Is Business Credit Important To My Business?
Good credit is the lifeline of your business. It enables you to obtain funding for things like expansion, capital expenditures, research and development, and staffing. It is the principal contributing factor to your business’s future growth, not to mention the cash necessary for survival. Good business credit also allows you to keep the cash you have to cover your cost of doing business; such liquidity lets you respond quickly to time-sensitive requirements, without halting or compromising operations.
It’s not just about getting access to financing; business credit has increasingly become the primary vehicle for setting terms on business loans, determining insurance premiums, and even setting lease payments. Good business credit can earn you lower rates, strengthening your cash flow.
WHAT’S IN MY BUSINESS CREDIT PROFILE?
Information that goes into creating a business’s credit profile comes from a variety of primary & secondary sources, such as:
Payment and banking data from company suppliers
Suits, liens and judgments, UCC’s, business registrations, incorporations and bankruptcy filings from state and county courthouses
Corporate financial reports
Contracts, grants, loans, & debarments from the federal government
News and media
Yellow Pages and other print directories
And, in the case of your Dun and Bradstreet business credit profile, direct investigations and interviews with company principals (i.e. self-reported data) and other companies that you work with.
Web mining
Dun & Bradstreet has created a proprietary set of key ratings and scores that use information gathered from these sources to present an unbiased view of creditworthiness. A complete Dun & Bradstreet business credit report includes the following proprietary scores and ratings:
Dun & Bradstreet Rating: an overall assessment of your business’s creditworthiness & viability
PAYDEX Score: a predictive indicator that measures the likelihood of your business paying within an agreed-upon timeframe
Credit Limit Recommendation: Dun & Bradstreet’s guideline as to how much credit should be extended to your business
Financial Stress Score: a measurement of the likelihood that your business will experience financial stress in the next 12 months
Dun & Bradstreet uses statistical models to develop a company’s scores and ratings. The most significant contributing factor to that rating is the promptness with which you pay your bills.
Business Credit Program Highlights
Corporate documentation review
Determine scope of business strength
Establishing a business credit file with Dunn & Bradstreet
Establishing a business credit file with Experian
Establishing a business credit file with Equifax
Building of PAYDEX and Intelliscore
Funding Advisor for a guided approach
Verify and dispute late or derogatory payments
Access to Vendor Lines of Credit
Types Of Credit We Help You Access:
Store Business Credit with Dell, Apple, Walmart, Amazon, Costco, Sam’s Club, BP, Chevron, Home Depot, Lowes, Staples, Office Depot, Ikea, and with most other major retailers
Fleet Credit for fuel and auto vehicle repairs for your primary vehicle, and a fleet of commercial vehicles
Cash Credit including Visa and MasterCard accounts you can use in most locations worldwide
Auto Vehicle Financing to purchase or lease your primary vehicle or a fleet of vehicles, in your business name
At Houston Luxe Credit Solutions, we provide you the greatest access to real useable, no-personal-guarantee credit through our revolutionary Building Business and Beyond program. This gives you the money you need to run your business, expand, and make your company more profitable and productive so that you have the money you need and the time to enjoy it. With all this information flooding into your business credit profile, it’s critical that you keep on top of your profile and credit score to help ensure you keep your reputation solid as you forge the relationships and partnerships that will enable your business to grow profitably.