Feb
5
Small Business Credit : DUN Numbers : Dun & Bradstreet
February 5, 2008 | 1 Comment
One of the benefits of incorporating is separating your personal liability from your business liability. Banks, however, do not like to loan to small business as easily as they do to people. People have a credit history and a capacity to earn money: and they try not to cease to exist when debt mounts.
What the Experian and the other credit bureaus do for personal credit Dun & Bradstreet do for small business credit. You can establish a profile with them that lists company and your company officials. It lists your credit capabilities. With their paid services they verify the information you provide and give the potential creditors or clients a sense of safety when they conduct business with you.
I recommend any small business creates a number with them (for free), and any small business who intends to work with large companies or the government should get their information verified (for a fee).
Note, however, that having a DUN number does not guarantees a loan on the name of your business. Small business credit takes a long time to build. Initial loans may have to be co-signed by you (and with that, an exposure on your personal credit). What the D&B company does (for a fee) is validate the credit and business activity you have done in the past — and if it has been good (after some time), it will increase your chances of getting a loan on the name of the business without exposing your credit.
Credit worthiness is not only for getting loans either. It establishes credibility — which may help your potential clients decide to do business with you. Even if you can’t get a loan, verified information can help you land extra income.
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We lend funds to small business without a personal guarantee, if you agree to hold the funds on deposit until you give them back to pay us off.
We report to D&B and to Experian Small Business. No credit check of any kind.