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Home » Business Credit Basics » How can I improve my business credit profile?
How can I improve my business credit profile?
Business Credit
What's business credit?
What are the 4 C's that companies look for?
Can't I just use my personal credit?
What's myth vs. reality?
Your Business Credit Profile
What's a business credit profile?
How can I avoid mistakes and omissions?
How can I improve my business credit profile?
How do I get started with Dun & Bradstreet?
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How can I improve my business credit profile?

You can influence your business credit profile, and you can proactively improve your business’s creditworthiness; once you know what information is most important, you can pay more attention to it.

In general, you can develop a strong business credit profile by:

Paying on time. The payment experiences other companies have with you are the most impactful data in your business credit profile. For this reason, you should ensure that you pay within the terms set forth by your suppliers. This is the most direct way to drive a positive credit rating.
Ensuring all relevant trade experiences are represented. Are you paying large sums on a timely basis to key suppliers and lenders that aren't being reflected in your profile? If so, you are missing out on a key opportunity to get the credit you deserve for paying your bills on time and for conducting a larger volume of business. You should check your profile twice a year, to make sure that all the vendor payment relationships are captured.
Keeping your personal finances in good order. If you are the owner of an emerging business, until your company develops a robust credit profile of its own, your consumer credit profile also may be reviewed by prospective creditors. How well you manage your personal finances can impact your company’s creditworthiness. Keep in mind, though, that your business and personal ratings are separate and distinct. One is not used to directly impact the other.
Keeping your business credit profile in good order. At Dun & Bradstreet, we strive for accuracy, timeliness, completeness and consistency of data. If you see accounts that aren’t yours, mistakes your bank made or false negative activity you’ve already addressed, you should address these inaccuracies in one of two ways: by signing up with Dun & Bradstreet eUpdate, our online tool that allows businesses to easily update their data.
Keeping your debt financing down. The capital structure of your business—that is, the extent to which you use equity or debt to finance your operations—is an important determinant of your creditworthiness. If other companies see a lot of debt on your balance sheet, whether in absolute terms or relative to your competitors, they are less likely to extend credit as you pose greater risk of default.
Contributing to your own profile. Some credit managers prefer detailed reports with a lot of supporting information, enabling them to assess risk based on a broader frame of reference. Communicating as much information about your business as you can to Dun & Bradstreet assures a more robust report. Likewise, doing business with companies that you know frequently report their experiences to us builds your profile.
Keep an eye on the key financial indicators in your own report to see how they compare to other companies in your industry. In doing so, you can benchmark yourself, identify areas for improvement and assure a profile with adequate information for a satisfactory credit investigation.

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