All newly open SBEs need a positive credit profile in order to secure loans and grants to build their business. In order to make this a reality you need a positive reporting history from the three main credit bureaus, I call “THE BIG 3”: Dun & Bradstreet, Experian Business, and Equifax Business. Your Fico Score, Net 30 Accounts and Payment History must be in good standing to help your chances of receiving the capital to build your business.
When we first started building our business credit profile, we needed suppliers who did two things: 1. We needed as many “Net 30” accounts as possible that, 2. reported positive payment history to THE BIG 3. However, there were only a few we could find; companies like Office Depot, Staples, Dell, Quill, Grainger and Office Max. But I needed more to build a good credit profile to qualify for loans and grants. While signing up for these initial companies it hit me: Wouldn’t it be great if I could extend new businesses “Net 30” credit lines and report positive information to THE BIG 3? It’d be a real win-win: we’d make it easier for other SBEs to become established and it could drive new sales and profits for my SBE.
So, I did it. I filled out their applications, including basic information (Company EIN, DUNS #, etc.). After a bit of effort and a telephone interview, my business reported information to THE BIG 3 just like Office Depot, Dell, etc!
I then promoted it on my website: “We extend “Net 30” credit to help small businesses grow!” This became a strategic advantage as SBEs purchased products from us for 6 months to a year, or forever, all the while paying on time because they knew we reported payment histories to THE BIG 3. This helped them build a positive credit profile, which helped them pursue funding and grants as they become more credit worthy.
How can you help your Small Business Community become more credit worthy deploying this same strategy? And in the process of helping you gain hundreds of new customers, growing your own business, enabling you to hire new employees and expand your market coverage or business offerings.
In the process we doubled our repeat business customers. And as a result we were able to secure business loans and qualify for grants we needed to build our business even further. You can do it to.
April 2012: The Supplier Spotlight Monthly SBE Contest.
Sponsored by Supplier-Connection – An initiative of major US companies committed to spending more with US-based small businesses.