Can a business name or industry hurt my ability to acquire business credit?

Yes, if at all possible avoid picking a business name and description that relate to the following industries: Real estate investing or anything else regarding investing of any type, Car sales, Adult entertainment, Travel industry, Money lending/collecting, Restaurants, and Dry Cleaning Establishments.

If you plan on investing in real estate then you will want to make sure that the company you build credit on is not involved in “real estate investing”. Many banks will automatically turn you down because this is a high risk category.

I plan on doing business with the Federal Government. How do I get a D-U-N-S Number?

Did you know in order to receive funding from contracts or grants, your company must have a D-U-N-S Number and be registered in the System for Award Management?

If you don’t have a DUNS Number, you can request one for free from D&B at http://fedgov.dnb.com/webform. As you know a Dun & Bradstreet Number is a unique nine-character number used to identify your company. The federal government uses this number to track how federal money is given out.

Can my business have more than one business address?

Yes, your company’s physical address can be different from its mailing address. There is also your resident agent’s address too. Don’t get confused between your business address, business mailing address and the registered agent address.

Now when it comes to your physical business address do not use a post office box. With a P.O. Box many lenders will automatically turn you down because your company does not have a physical location.

Can I use my cell phone as my business phone number?

Many small business owners use their cell phones to operate their businesses. If you decide to use your mobile device as your primary business phone number then there are several things to consider.

First, your cell phone must be solely used for business purposes and all incoming calls must be answered using your business name. Secondly, your voicemail must also reflect your company name. Finally, be prepared to pay a monthly fee in order to get your cell phone number a wireless business listing.

Should I purchase a shelf corporation?

Everything in lending and business credit starts from the day you open your business bank account. Although purchasing a Shelf Corporation does provide age for the entity itself, lenders will consider the date you open your business bank account as the day the company started.

Do I have to pay Dun & Bradstreet in order for my profile to get established?

No, no purchase is required to acquire a D-U-N-S Number and profile with Dun & Bradstreet. You can elect to obtain a D-U-N-S Number for free but it will take 30 days to receive your number. To expedite the process and obtain your number in less than 5 days does require to purchase one of their services.

Are the costs of using business credit tax deductible?

Yes, the costs of business credit may be tax deductible. You should consult your tax attorney for additional information, but interest and finance charges that your company incurs on its business account are tax deductible. This is an important distinction between business credit and personal credit, and it’s one of the reasons why it’s essential to separate your business expenses from your personal expenses.

Why isn't my business listed with Experian Business?

If your business does not have a business credit report or score with Experian Business, it’s most likely because your company is not listed in their files or the information in your file is incomplete or incorrect. Experian Business requires minimum information to generate a business credit report and score. Minimum information is at least one tradeline and/or one demographic element.

What is a UCC Filing?

UCC filings or ‘Uniform Commercial Code’ filings are required whenever a company pledges assets as collateral against a loan. Business credit reporting agencies will list recent UCC filings (original, amendments or terminations) on company credit reports.

The most important UCC form small businesses are affected by is a UCC-1 form also known as a Financing Statement. UCC-1 forms are filed in the secretary of state’s office in the state of the debtor’s business. All information on a UCC-1 is public information.

What makes up my business credit score?

Although each business credit reporting agency has its own unique scoring models, business credit scores are widely determined through common multiple factors: Credit: number of trade experiences, balances outstanding, payment habits, credit utilization, trends over time, etc. Public records: recency, frequency and dollar amounts associated with liens, judgments, bankruptcies, etc. Demographic information: years on file, Standard Industrial Classification (SIC) code, business size, etc.