This New Service Can Help You Build Business Credit Faster

September 17, 2018

By Gerri Detweiler –

ArrowsMany entrepreneurs find the process of building business credit frustrating. It’s not terribly difficult, but it does involve a few steps, the most important of which is to obtain accounts that report to commercial credit agencies. By paying those bills on time (or early) and keeping your debt in check, you can help build strong business credit. But because many small business bills aren’t reported to commercial credit reporting agencies, business owners may find themselves with little credit data on their reports.

But there’s a new simple solution that can help business owners build credit using accounts they already pay, and it’s fast and easy. Here’s how it works.

You set up an account with eCredable, a service designed to help small business owners build credit using bills they already pay. You can link specific types of bills (see below) to eCredable, which then reports that information to commercial credit reporting agencies. Those accounts, when reported and paid on time, can help build business credit. Currently eCredable works with Experian and Ansonia and expects to report to another major business credit reporting agency in the coming months.  (more…)

6 Confusing Small Business Loan Terms Defined

September 4, 2018

By Megan Tyler –

LoanGetting a business loan can be tough. You know the ins and outs of your own business, but you might not know how to get the funding you need. To make matters worse, small business lending is full of confusing financial lingo that you may not understand. If you need a crash course in business lending lingo, here’s a quick rundown of five confusing small business loan terms.

APR

You see APR everywhere when applying for financing, but you might not remember everything that goes into calculating the APR for different types of financing.

APR stands for Annual Percentage Rate, and it estimates the overall annual cost of a loan including fees and compounding interest. This means that when looking for business financing and credit cards, an APR is often a better point of comparison than the interest rate alone. If your loan doesn’t give you an estimated APR, you can always use an APR calculator to get an idea of how much your loan will cost.  (more…)

Where Can I Get My Dun & Bradstreet Rating?

July 23, 2018

By Megan Tyler –

FinanceWhether you’re competing for a government contract or trying to secure favorable terms for a loan, a solid Dun & Bradstreet Rating can help you take your business to the next level. As the oldest credit bureau in the U.S., Dun & Bradstreet (D&B) deals only in business credit and is often the go-to credit agency for the the federal government and other high volume lenders. But how do you get your D&B scores?

Business credit works differently from personal credit. Unlike with personal credit, you aren’t entitled to one free business credit report per year, and lenders aren’t required to tell you if they turned you down for a loan based on your business credit score or lack thereof. Many business owners may not know how to interpret their business credit, and that goes doubly for a multi-faceted rating like Dun & Bradstreet’s.

Dun & Bradstreet’s credit rating process can be separated into two ratings that lenders can use to evaluate a business’s creditworthiness: the D&B Rating and the D&B PAYDEX® score. These two factors work together to inform lenders about a business’s credit risk.  (more…)

The Tool Every Summer Business Needs to Get Now

June 4, 2018

By Connor Wilson –

Summer businessWhile summer won’t officially begin until June 20, the warm weather is already here and school is already out in most places. Depending on the type of business you run, this is either good news or bad news. Some businesses see significant dips in income in the summer months, while some seasonal businesses operate exclusively in the summer. With millions of Americans preparing to travel, beautify their yards, or just head out to enjoy the season, this is the time for summer businesses to make money. For some, it’s the time to buckle down and strategize so their businesses survive the slow months.

There are a number of strategies your business can use to stay afloat and continue to innovate, but one in particular is the tool that every summer business needs to stay on track and meet its goals.

Applying for a Business Line of Credit

If you’ve kept up on your payments to your vendors and other credit accounts, you could potentially qualify for a business line of credit. During 2017, 33% of Nav customers applied for funding to either help cash flow or for expansion. And 40% of customers during this period applied for lines of credit, far more than any other type of financing.  (more…)

5 Ways Business Credit Cards Can Hurt Your Credit

May 29, 2018

By Jason Steele –

Credit CardsCredit cards can be an indispensable tool for small businesses. These products offer companies a secure and convenient method of payment, while providing a valuable means of financing and being more readily available than other options like a small business loan. But with a small business credit card, its balance and payment information will be recorded on the credit histories of the primary account holder, just like a consumer credit card. This isn’t a problem when your small business cards are managed responsibly, but it causes issues when they are are not.

Here are five ways that a small business credit card can hurt your credit.

1. When you fail to make on-time payments

With both small business and consumer credit cards, making your payments on time is one of the most important things that you can do to build and maintain a positive credit history and a high credit score. If problems with your company’s cash flow affect your ability to pay your small business credit cards on time, then as the primary account holder, it can damage your personal credit history and lower your credit score. Thankfully, most small business credit cards offer email and text reminders to ensure you don’t forget their due dates. Furthermore, most card issuers also allow you to create automatic payments.  (more…)