How To Add New Information To A Credit File

You will need to establish a new credit file for your small business in order to apply and be approved for many types of business credit cards, business loans and lines of credit. Therefore, it is important that you understand the ways that a new credit file can be established.

The Conventional Way - Take Your Time

Many small businesses build their business credit file gradually. Most small businesses are started with savings and borrowed funds borrowed by the small business owner. Also, many purchases and expenses are paid with cash or with a small business owner’s personal credit card. However, over time most small-business owners are able to establish minimal credit lines with certain suppliers and vendors.

Many small businesses start their credit files by making small purchases with office supply companies that may provide 30 day terms or even by establishing business shipping accounts with well-known nationwide carriers. This approach takes time and generally does not yield results that can help a small business with significant credit financing for about two years or so.

Most banks and lenders will require that a business have an established credit rating before they will extend business loans and lines of credit. Experience has shown that it generally takes most small businesses about two years to develop or create a substantial business credit file.

Kick Starting Your Business Credit File

While there is certainly nothing wrong with taking your time and gradually establishing your business credit, your business can benefit greatly by adding information to your credit file as soon as possible. Companies like Dun & Bradstreet and the business divisions of Equifax and Experian offer programs that will allow you to report credit trade lies directly to the business credit reporting agencies.

These programs generally involve a fee and all trade lines will need to be verified. However, if you purchase these types of business credit file programs, the reporting agencies will verify your trade lines with your vendors and suppliers and make sure that your credit file reflects that you have credit accounts in good standing. Many times, this can help you quickly gain access to other types of credit lines that you may not have had access to without the credit lines being reported.

Adding other Information to Your Business Credit File

Just like your personal credit report, you should always make sure that you are aware of any for information on your business credit report. You can request your business credit report from Dun & Bradstreet, Equifax and Experian. Once you have your business credit report, carefully review it and make sure there are no errors. If you notice discrepancies, you should contact the reporting agency directly.

Many reporting agencies give you the ability to add comments or notes regarding disputed accounts or accounts that are listed in error. You can request that information errors be removed from your business credit report; however, you should be aware that unlike personal credit reports, removing negative information from your business credit file will generally take a lot longer because laws pertaining to business credit reports are not nearly as strict as they are for private consumers.