It’s very helpful for small business owners to have good personal credit and a strong business credit profile. Business credit matters, and there are steps you can take to improve your business’ credit score.

1. Essential Steps You Can
Take to Improve Your
Business Credit Score

2. Why Business Credit Matters
Strong business credit often lays the foundation for a thriving small business.
Among other benefits, it can lead to better terms with lenders and suppliers, because
creditworthy businesses are more likely to qualify for business financing.
Businesses with good credit are also often approved for larger amounts of financing
with lower interest rates and more favorable payment terms from suppliers.

3. How to Improve Business Credit
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4. Today: Access Your Business Credit Reports
Before you can improve business credit, you should
find out where you currently stand with the main
business credit bureaus: Dun &
Bradstreet (D&B), Experian, and Equifax.
Business credit scores differ from consumer credit
scores because each business credit bureau tracks
different data and has different scoring models. D&B
reports will show your payment history with suppliers
(trade data). In addition to trade data, Experian and
Equifax also track business loan payments.

5. Today: Access Your Business Credit Reports
One popular business credit score is D&B’s Paydex, which ranges
from 0-100. Anything above 80 is generally considered a good
Paydex score.
Experian has a similar 0-100 scoring range, with anything above
80 being considered a good score. Equifax’s score ranges from
100-992, with 992 being the best score.
The FICO SBSS, or Fair Isaac Corporation’s Small Business
Scoring Service, draws information from both your personal and
your small business’ financials, and ranges from 0-300. A FICO
SBSS score in the high 200s is considered a good score.

6. Today: Access Your Personal Credit Reports
Next, assess your personal credit report. You can
get one free report every year from the personal
credit bureaus: Experian, Equifax and TransUnion.
Business lenders may consider both your business
credit score and your personal credit score in
determining your eligibility for a loan.
If you find an error on your personal credit report,
get it fixed with the credit agency.

7. Week 1: Build Business Credit
Open a business credit file if you don’t have one
already. If your business could not be scored or
didn’t have a report, then establishing a business
credit file is a step you can take to build business
credit.
You can open a credit file by getting a D-U-N-S
number, a 9-digit number issued by Dun &
Bradstreet used to identify your business. A D-U-N-S
number, which is available for free on D&B’s
website, lets suppliers, contractors, and others you
do business with verify that your business exists and
is operational.

8. Week 1: Build Business Credit
Next, collect at least three trade references to report your
payment history to the business credit bureaus. Vendors with
the following characteristics can be helpful to have as
references:
•You have had an open account with the vendor for at least 3
months
•You have a high credit limit with the vendor
•You’ve had no late payments with the vendor
If your suppliers don’t report to business credit bureaus,
consider switching to suppliers that do.

9. Week 1: Build Business Credit
Next, if you don’t already have one, apply for
an employer identification number (EIN).
An EIN is an IRS-issued tax identification number for
your business. With an EIN, you can apply for
business financing and open business accounts
without providing your social security number.
Even though vendors and suppliers may still check
your personal credit, establishing business accounts
and loans under the business’ name and EIN can
improve business credit.

10. Week 2: Build More Business Credit
Continue your credit-building momentum by opening a business checking account.
Opening a separate business checking account improves business credit by separating
your business finances from your personal funds. Pay vendors, business credit card
bills, and business loan repayments from your business checking account.
Use business credit cards if you have them. Getting a business credit card—including a
retail card from places like Staples or Home Depot—and making timely payments on
it helps you build up a history of prompt payments and can improve your business
credit. As an added bonus, you may earn cashback and rewards points by using a
business credit card.

11. Next Month: Long-Term Considerations
Think about your business structure. If
you’re a sole proprietorship, consult an
accountant and lawyer within the next
month to explore which business
structure may be best for your
business.

12. Ongoing Business Credit Maintenance
Once you’ve taken the above steps to build up your business credit, you’re in
maintenance mode.
Regularly review your business and personal credit reports. If any errors show up on
your reports, you can dispute them and get them fixed. If some part of your credit
history, such as trade data, is sparse, then you can consider steps to build up your
credit specifically in that area.
You can also familiarize yourself with the different components of your business credit
report, so you can work on any factors that may be weighing down your score.
Just as with your personal finances, pay your business’ bills on time or early. Payment
history is a major factor used to calculate your business credit score.

13. Our Advice
Install a business credit building system and the frustration associated
with business funding will go away – forever!
Alliant Business Credit Building System Helps You:
• Setup your business to meet lender and credit issuer credibility standards
to get automated approvals
• Setup and activate your credit profile with Dun & Bradstreet, Experian,
and Equifax Commercial and get your free D-U-N-S number (which is
essential to building great business credit)
• Get initial trade credit to build your business credit reports with no
personal credit check
• Access up to $60,000 in unsecured credit with 0% rates that you can
secure even as a startup

14. 14
THANK YOU!
For more information aboutAlliant Business Systems
call 804-293-2416 or email us at
info@alliantbusinesssystems.com
alliantbusinesssystems.com
facebook.com/BuildingBusinessCredit/

15. BONUS!
15
7 Step Business Credit Building Program
Here are the 7 core steps that make up the simple, effective,
and affordable Alliant Business Credit Building Program.
Businesses that appreciate and implement this approach to
building business credit get funding in a consistent and
predictable manner without a personal guarantee.
>>Download Your FREE 7 Guide Here<<