Building Smart Business Credit - NFIB/Experian Webinar


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Experian Business Information Services presented a free webinar with the National Federation of Independent Business, and explored some of the misunderstandings of business credit, offering advice on how to build business credit and explained how a positive credit profile can help your business grow.

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Building Smart Business Credit - NFIB/Experian Webinar

  1. 1. Presented by: Mary Ann Strout Experian Business Information Services
  2. 2. Mary Ann Strout Sr. Product Manager, Business Direct Experian Business Information Services » Joined Experian in 2003 » Markets business credit reports and monitoring services to Small Businesses and Owners
  3. 3. • Business credit can help grow your business • Sound payment practices are key to a solid business credit profile • Separating business credit and personal credit can greatly mitigate your risk • There are 4 keys to building business credit • Credit applications can be made easier by following a few simple steps
  4. 4. • It starts with the way you pay – Polling question • It’s important to maintain a business credit profile that is distinctly separate from your personal credit profile
  5. 5. • Your credit bureau report is at the heart of building business credit • Credit data is collected from a wide range of sources – State filing offices – Public records – Credit card companies – Collection agencies – Corporate financial information – Marketing databases
  6. 6. • Business credit reports serve two primary purposes: 1. Helps your company more easily gain access to the credit it needs at better terms 2. Can help you understand more about the companies with which you do business
  7. 7. • Here are some guidelines: Borrow and pay on time Be visible (i.e., ensure that your good behavior is reported) Monitor your company’s profile  Check and correct outdated information  Be alerted of important changes or potential fraud perpetrated in your company’s name Act like a business  Establish accounts in your business name, not your personal name
  8. 8. • Consider the following before you complete a credit application:  Evaluate your own business credit  Trade payment history  Credit balances  Track record  Red flags  Get good references  How long they have done business with your company?  What is the maximum credit line they’ve extended to your business?  How long does your company typically take to pay an invoice?  Have there been times when your company hasn’t been able to pay on time?  Fill out the form completely
  9. 9. • Four key criteria used when evaluating a business’s creditworthiness: 1. Character 2. Collateral 3. Condition 4. Capacity
  10. 10. • Grow your business with good credit practices – Maintain a distinctly separate business credit profile – Stay current on payments to creditors – Ensure that your good payment history is reported to the credit bureaus – Monitor your business credit profile to detect issues or fraud – Use business credit reports to limit your risk of doing business with others
  11. 11. Resources: • • •
  12. 12. • Thank you – Email: – Today’s participants will receive an access code to download a complimentary business credit report • Connect with Experian – Twitter handle: @experian_b2b – Facebook page: – Blog post: