One of the reasons business credit is so appealing is that business owners can commonly qualify with no personal-guarantee (PG).

This means business owners can access cash for their businesses without the personal liability. Another reason business credit is a great resource for business owners is that there is no personal credit check with many sources. So, even business owners with challenged credit can be approved for thousands of dollars of credit for their businesses.

To qualify for most business credit sources the business must have a positive credit score established with the appropriate business credit reporting agencies. The two most commonly used business credit scores are the Paydex score from Dun and Brad Street and the Intelliscore from Experian.  Once a positive business credit score is established, many merchants will then approve the business owner for credit in the business’s name.

Thousands of major merchants offer business credit. But most don’t promote their business credit programs, so they are difficult to locate. Some merchants offering business credit include credit. But most don’t promote their business credit programs, so they are difficult to locate. Some merchants offering business credit include Chevron, Dell, Staples, and Lowes.

Once business credit is established and paid-as agreed the business credit scores will continue to increase.  As more positive credit history is established and scores increase, business owners can then be approved for even more credit with higher credit limits.

Business credit is an outstanding resource for businesses.  Owners can obtain credit to run and expand their businesses without the personal liability of using a personal guarantee.

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The exact definition from Dunn & Bradstreet, or D & B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of  how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. There are many BIG differences from a business Paydex credit score and an individual FICO

consumer credit score.  Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain. Individual credit scores are calculated based on a number of factors.  The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.

Most lenders and suppliers are looking for a score of 70 and higher. Having a score of 80 and above is very good.

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Once your DUNS number is established you will next want to find a merchant who will extend you credit and then report that credit to Dun and Bradstreet.

Once you have positive business credit report to Dun and Bradstreet you will have a positive Paydex score established.  You will want to then apply for more business credit and use it regularly.  Make sure you pay all payments back early to raise your scores to 80 or higher.

You can easily and quickly establish a positive Paydex credit score.  As you continue to pay your bills in a timely manner, your scores will continue to rise giving you the ability to qualify for credit in your business name.

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