How better Fundability helps improve your D&B report.
What is fundability? It is your business's ability to get funding. You
can make it harder or easier for your business to get money. A business starts
with no credit profile, with no credit history, D&B relies on the information
you provide to score your business. The more data you provide usually, the better.
You can present your business information in the most fundable
manner and help your company out the most.
Dun and Bradstreet is the oldest and largest credit reporting agency. You must
have a DUNS number to start building business credit. Go to D&B's website and
look for your business. dnb.com/duns-number can't find it
then get one. A duns number plus three trade lines reporting leads to a Paydex
score. Once you are in D&B system, search Equifax and Experian sites for your
business at creditsuite.com/reports.
D&B reports are one of the first things a creditor checks when deciding whether
to extend credit. D&B reports help clients decide whether a business is a
good credit risk. Several factors go into creating such a report in general. When D&B
does not have all of the information they need, they will indicate
that in their reports. Missing information means the risk is unknown.
Consider D&B data. D&B database contains over 250 million companies
around the world. When a business fills out a credit application, they provide
data for D&B. Such as amount of time in business. Industry & classification and
number of employees. Let's look at D&B, your Industry and SIC
and NAICS codes. Some industries are considered more risky than others. The
IRS website is where you choose SIC and NAICS codes. Industries are
categorized by SIC Standard Industrial Classification and NAICS Northern
American Industry Classification System. Be honest when you choose yours. But
there is no reason to choose the riskiest code. If a less risky one might apply.
Let's look at D&B in your business name. Check with your secretary of state, they
might require a business name, be unique. Keep the name of a high-risk or restricted
industry out of your business name. A full business name should include any
recorded DBA filing you use. But any DBA should be a quick stop on the way to
incorporation. D&B data also includes voluntary
reporting by creditors. It's an advantage for creditors to report because if
borrowers know a company reports borrowers may pay faster to get better scores. They
can reward good credit to conscientious borrowers who pay back on time and
reporting alerts other creditors that a company has borrowed and hence may be
about to overextend itself, which means it might not be able to promptly pay its
obligations. This is from vendors which report.
Let's look at D&B and your business credit history. Get the most favorable
funding by paying all bills on time. This means a Paydex score of 80 and
Equifax credit risk score of 90 or better. And a good FICO SBSS score will
be driven in part by on-time payments and business credit history, where Experian
historical behavior payment history equals 5 to 10 percent of the total
score. Paying on time and in full will improve your fundability and the data
that your creditors voluntarily supply to D&B.
Let's recap, building business Fundability has practical applications. It
can help you improve your D&B report. A lot of the data which D&B uses also
affects your business fundability keeping your records congruent and
compliant with customer and bank needs will co-incidentally, help with D&B. In
particular, D&B is predictive report scores can be improved with proper
financial stewardship. Contact us today to learn more about how
better Fundability helps improve your D&B report.