I know, I know I guess that is an attention grabbing, “shock treatment” headline. Not true – true but there is one area that both these establishments seem to excel in.

Last week I spoke about the power of corporation in  our country. Dun & Bradstreet (D&B) is one of the biggest credit reporting agencies. They database information about companies (corporations etc) that do business with certain vendors and creditors. D&B also creates a file for your business and gives you a score once you have three trade lines that report. A trade line is similar to a credit line (secured or unsecured) in your personal credit (more of which later). Almost all  lending institutions use this business file as a part of their decision making process. The file is actually a critical part of the lending process.

As an example: Say you started a corporation and are now buying goods from certain vendors plus you have a lease agreement that is registered with the county clerk. Both these pieces of information will appear on your business credit report. D&B goes even further  in its search than most other bureaus. In fact  WHAT D&B looks at and considers is one of the big secrets of developing a fool proof business credit file. A file that will eventually get banks mailing you cash lines of credit. Yes – MAILING  you cash cards. So that is one of the lessons of this article.

Getting back to that catchy headline. D&B is a private for profit organization that is NOT based in USA. D&B makes its money by selling  products like business credit building and monitoring packages.  Many of their selling  tactics border on lying (I am actually being respectful ). Once you show an interest in establishing a business credit file they will call you and use high- pressure sales tactics that are actually illegal.

Many of my acquaintances have told me that they felt threatened by them and were “forced” to buy one of there useful but over priced products. Almost like  “an offer they could not refuse” .

At the same time you must realize that D & B are of utmost importance as far as building business credit. Keeping a good relationship with them is akin to keeping good business relations with your customers. In fact I actually suggest buying one of their packages as soon as you can just to keep a good relationship with them, even thoughstrictly speaking you do not need to pay them a dim.

The Second lesson; it is your complete business file with all its different components that is of primary concern in developing business credit. Many credit gurus will have you believe that a Paydex score is a good start. I believe saying that can be misleading. Building a solid foundation when creating a business file can be a totally separate issue than getting a decent paydex score as soon as possible.

My next article will go into more detail – more like a step by step guide in building business credit. I will write about SIC codes etc.

For now please understand that the first step is realizing that business credit is all about the power of corporation (last article). Secondly, D&B is very important in building your business credit file and your business file is much more important than any number/score.

Thank you.