How to immediately get setup with Dun and Bradstreet and start accessing cash and
credit for your business. Dun and Bradstreet often called D & B is is
the biggest business credit reporting agency. They provide information on
businesses and corporations for using credit decisions worldwide. Publicly
traded company under the ticker DNB on the New York Stock Exchange. Their
headquarters is in Short Hills New Jersey.
D&B routes track all the way back to 1841 with the formation of the Mercantile
Agency in New York. This was 50 years before the first consumer agency Equifax
was born. In 1933 the Mercantile Agency joined with R.G. Dun and company and became
known as Dun and Bradstreet. In 1963 the introduction of the Data
Universal numbering system or DUNS helped bring business information into
the computer age. Today D&B maintains a database of over 213 million
companies globally. Four U.S. presidents were former
employees of Mercantile Agency which later became D&B including Abraham
Lincoln, Ulysses S. Grant, Grover Cleveland, William McKinley. They all worked as
credit reporters.
The very first step with getting setup with D&B is to set up your entity. You
can build credit with D&B with any entity but you'll want to consider
either a corporation or LLC to help reduce your liability in the business
with these entities. You in the business are separate from each other, making it
easier to also separate your liability. You can set up your entity by visiting
your secretary of state website search for the name you want to ensure it's not
already taken. Then follow the steps to set up a new for-profit or non-profit
business. Fees vary by state but the setup process usually only takes 15
minutes or less to complete. Next, visit the IRS website to get your
employer I.D. number or EIN do not pay for your EIN. It's totally free. There are
companies who try to look official and help you get your EIN. But at the end of
the process they charge you a fee. You don't need to pay.
Your next step is to get your D&B D-U-N-S. Number. This can also be obtained for
free from D&B directly or you can use this shortcut. The Data Universal
Numbering System or D-U-N-S is a business identifier code provided by Dun and
Bradstreet. The DUNS number is a nine-digit number
issued by Dun and Bradstreet and assigned to each business location in the D&B
database. Each having a unique separate and distinct operation for the purpose.
Every business must first have a DUNS number before Dun and Bradstreet will
assign a Paydex business credit score. The DUNS number is the preferred method
worldwide of identifying businesses. Unlike national employment
identification numbers or EIN a DUNS number may be issued to any business
worldwide. It is used by many foreign governments including the U.S. and
Australia, European Commission and even the United Nations. More than 50 global
industry and trade associations recognize recommend or require DUNS.
It's important to mention that when you start applying for credit you should
consider using some type of business address or virtual address. But setting
up your entity in your DUNS will require a physical address of some kind. You
can't use a virtual address. And even though you can obtain real business
credit without supplying your social security number. Most business bank
accounts may require one to be opened. Make sure you have all you need to go to
the next step including your business entity setup. The cost varies usually
between 50 dollars and six hundred fifty dollars. EIN number obtained from
IRS for free. Your business bank account open which usually requires an initial
deposit of 25 to 50 dollars. Your DUNS number obtained from Dun and
Bradstreet which is free. Credit issuers and lenders have a secret
set of requirements you must meet to get approved. These requirements are to
determine if your business is legit and credible. You must ensure you meet these
requirements before applying for any type of credit.
You must have a website and professional email address, not a Gmail or AOL type
email. You must have a business phone number, not a mobile or home phone. You
should have a toll free number and fax number. Your phone needs to be listed
with 411. You should be listed online in all your listings the same.
You need a real business address or virtual address, not a home address P.O.
Box or U.P.S. address. Make sure you obtain all necessary licensing needed for your
industry and state. You should be listed online and all of your listings the same.
With Dun and Bradstreet there are a couple of ways to start building your business
credit. The first way is by using their credit builder program at
www.dandb.com/credit-builder. This runs one hundred and thirty-nine dollars
monthly or more or they'll also often offer you a one-time fee. You can also
pay. They will offer to set up your DUNS for
you if you purchase without you needing to wait 30 days to get it by mail with
credit builder you also get access to your D&B scores and ratings can add
positive payment experiences to your report. Get alerts when others inquire
into your business. See how your company compares to others in your industry.
With credit builder D&B allows you to add trade accounts you already have that
aren't currently reporting to your D&B reports these accounts. Then show is
trade lines helping you build your profile and score. This might be
something to consider if you have a lot of accounts you pay now that can qualify
and aren't currently reporting. Keep in mind this service is only to add
accounts to your D&B reports not Equifax or Experian which many credit issuers
and lenders use. Also, D&B isn't helping you access new credit only
helping you add existing credit to reports.
Also keep in mind many types of accounts cannot be added to your D&B using this
credit builder's service. You can visit this link to access a list of accounts
that you can't add or simply go to the very bottom of the credit builder page
where you'll also find this link. D&B credit builder here's D&B's wording
on accounts that can't be reported D&B works together with thousands of
nationwide vendors that report payment experiences on a regular basis. These
data providers have requested to remain anonymous and cannot be added by a
customer for trade reference. Some types of companies do not respond to D&B
requests for information within a reasonable timeframe. D&B will make six
attempts to contact a company that has been selected to provide trade reference
and will accept inbound references at any time. However, a customer may resubmit
references at any time after which D&B will make six more attempts. Certain
companies have proven over time to be less trustworthy. Accordingly, D&B has
identified certain characteristics associated with companies and maintains
policies related to the eligibility of that company to provide a reference.
The following kinds of trade references are amongst those that are not accepted
by D&B payments that have not yet been made but are anticipated payments to
businesses that have shared principles or some other type of legal ownership
relationship. Financial services banks, credit unions
and insurance, bank references, utilities and gas companies, credit card companies,
landlords, virtual offices, credit counseling or registered agents
international companies. Businesses with an unknown SIC.
So before you buy. Think about the accounts you may have who might report
such as your CRM or other types of software or other accounts that aren't
restricted. Also, keep in mind getting D&B on the phone with your service provider
isn't always easy and very well can take time.
You can also get new credit and use that to build your profile and score with D&B.
You can do this quickly if you have good personal credit by obtaining accounts
that can give you money now and also report to D&B.
Another way to build business credit is by starting your profile and score with
Vendor accounts. These are companies who will offer you credit even if you have
none now and report to the business reporting agencies. They will offer you
net 30 terms usually meaning you have 30 days to pay off what you borrow in full.
Some vendors to start with who report to D&B and will a preview with no
existing credit include Seton, Quill, Gemplers, Uline for real business
credit link to your EIN not your social security number. Don't put your Social
Security on the application. D&B will want you to have two to three
of these types of accounts to give you a profile and score. You do not need to pay
D&B to have these added to your report. You just need to find items you want to
buy. Apply for credit. Use that credit. Pay the bill timely.
The main credit score used in the business world is known as a Paydex
score provided by Dun and Bradstreet from D&B. 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. The Paydex score ranges from zero to 100
with 100 being the best score a business can obtain a score of 80 or higher is
considered good or healthy credit. A business can obtain a good business
Paydex credit score by ensuring payments are made promptly to suppliers and vendors.
Business credit scores are based on whether the business pays its bills on
time a business that pays its bills when they're due will average an 80 score
paying early can reward you with a 90 to 100 score. If you pay late your scores
will be lower depending on how late you make your payments on average.
You should have five payment experiences to start applying for store credit. Most
major retail stores offer EIN only business credit including Staples and
Office Depot, Lowe's and Home Depot, BP and Chevron, Best Buy Apple and Dell.
Walmart, Costco and Sam's Club and most others.
With 10 total payment experiences, you can start to secure fleet and cash
credit cards based on your EIN only and you'll have a much better chance of
getting loans and credit lines. In some cases, you can even obtain lending such
as auto leasing without a personal guarantee.
Just like with consumer credit. Building your business credit is a never-ending
process. The more credit you apply for the more you get and the more you use
that credit the higher your limits become. Also, keep in mind all lenders
review business credit when applying for a business loan. Even high-risk lenders.
Also, remember anyone who wants to can see your reports which is one more
reason business credit is so important. If you want to see your credit safe
reports visit. We can even do an Experian review with you as well.
Contact us today to learn more.