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Business Credit.

ESTABLISH OR BUILD BUSINESS CREDIT USING OUR WORLD CLASS PROGRAM AND PLATFORM.

The Power of Business Credit

Business credit is similar to personal credit in the sense that credit for your business is based on a positive payment history.  However, the importance of business credit is that business owners can use their business credit for credit and cash for their business without the payment and utilization going onto their personal credit. 

​Business credit is also important as banks, SBA lenders and alternative banks use business credit scores from bureaus such as Dun and Bradstreet, Experian, and Equifax to make informed decisions about loans and lines of credit.​

Onesta has successfully worked with clients for many years with their coaching model that supports business owners every step of the way.

Our program consists of two parts:​


1) Business Credibility 

We work with clients to ensure that their business is credit worthy.  That is, when we begin working with clients to attain and season their tradelines we make sure clients are approved. The Onesta team knows what creditors require for business credit approval and our credibility process ensures that when clients apply for credit, they are approved. 

2) Credit Tradeline Development

One of the most challenging parts of building business credit is knowing what to do and when to do it.  We have a multi-step process aimed at systematically building business in an aggressive but rational manner. 

We have a massive client portal with hundreds of choices for creditors who provide business credit and a team who actively manages and understands how to utilize our program.

 

DO YOU ALREADY HAVE ESTABLISHED BUSINESS CREDIT?


​THE TEAM AT BRP ONESTA CAN CUSTOMIZE A SOLUTION WHICH MEETS YOUR NEEDS.

ESTABLISH OR BUILD BUSINESS CREDIT USING OUR WORLD CLASS PROGRAM AND PLATFORM.

WHAT INFLUENCES BUSINESS CREDIT?

Building business credit is not hard but it does take some time and effort.  One of the most important aspects of BC Scoring is knowing how Experian, Equifax, and Dun & Bradstreet all use these common indicators in their reporting of business credit scores:

  • Years in business

  • Credit lines applied for in the last 9 months

  • Credit lines opened in the last 6 months

  • Payment history for the previous 12 months

  • Number of late payments


Benefits of strong business credit​ - A solid business credit score can help you:

  • Qualify for small business loans, lines of credit, and credit cards

  • Secure better rates and terms on financing

  • Build a safety net that makes it easy to take out emergency loans or lines of credit if you fall on hard times

  • Do business with new vendors and suppliers


To improve business credit score: ​The business credit score requirements vary from lender to lender, so as much as we wish we could give you a golden number, there isn’t one (sorry). Whatever your business credit score, you’ll benefit from improving it—whether that means helping you qualify for a new loan product or better rates and terms. 

USE A BUSINESS BANK ACCOUNT FOR EXPENSES

​Your business bank account should only be used for business expenses. This approach will help you to build business credit, streamline bookkeeping, and protect your personal financial assets from business liabilities. 

MAKE TIMELY PAYMENTS

​If you only take one piece of advice for building business credit, let it be this one. Making payments on time is the #1 way to build, improve, and repair your business credit score. It’s the cornerstone of credit data and a surefire indicator of creditworthiness. Here are 3 steps you can follow to ensure timely payments:

  • Sign up for auto-pay: Most recurring bills offer the option to have the amount deducted automatically from a bank account of your choice. 

  • Use bill-pay reminders: You can enter your bills into your calendar, or you can use reminders from software like Microsoft Money or Quicken. 

  • Schedule a bill-paying time: Carve out a regular time slot on your schedule every month to formally sit down and take care of your bills. 


OPEN A BUSINESS CREDIT CARD

​Once you’ve mastered making payments on time, you’re ready to take your business credit into your own hands. Opening a business credit card will help you to build business credit in 2 ways. First, it will bolster your history of on-time payments. Second, it will improve your credit utilization ratio, i.e., how much credit is available to your business vs. how much you’re using. Bonus: business credit cards often offer rewards, so you can make your business expenditures work for you.
***Remember to make sure this is a real business credit card and not one that just reports to personal credit.

INCREASE AVAILABLE CREDIT (TAKING OUT A LOAN, ETC.)


​Remember what we said about the importance of on-time payments? When you establish a history of repaying a loan on time, that demonstrates creditworthiness. In turn, you’re more likely to qualify for or secure better rates in the future. With a variety of loan options, like equipment loans or business lines of credit, you can find a loan that can work double duty, meeting your business needs and helping you improve your business credit score at the same time.
 

DO YOU ALREADY HAVE ESTABLISHED BUSINESS CREDIT?
​THE TEAM AT BRP ONESTA CAN CUSTOMIZE A SOLUTION WHICH MEETS YOUR NEEDS.

 
 

Our team is consistently asked by our clients and potential clients regarding the importance of credit and business credit so we put together a resource regarding descriptions which we utilize from our partner at NAV, as it provides an overview of consumer and business credit.

What is a Business Credit Score?

Personal credit scores rank creditworthiness of individuals, business credit scores do the same for businesses. Personal credit scores range from 300 to 850. Business credit scores range from 0 to 100. Major business credit reporting agencies Dun & Bradstreet, Experian, and Equifax produce business credit scores and reports. FICO scores for small businesses are known as “FICO SBSS.”

If you try to compare business credit to personal credit, you’re likely to get frustrated. That’s because business credit scores differ from consumer credit scores in some key ways:

Credit Score Ranges: Personal FICO scores range between 300 to 850; business credit scores typically range between zero to 100. Paying on time to lenders and/or creditors is the best thing you can do to establish a good business credit score.

Free scores: There are over 150 places where consumers can check and monitor their consumer credit scores for free. But free business credit scores are available from a very limited number of sources, such as Nav.

Access: Anyone can check a businesses’ credit scores, unlike consumer scores which are restricted to anyone with a “permissible purpose” under federal law.

Accuracy: A study published in the Wall Street Journal found as many as 25% of business credit reports may contain errors or are missing key information. If the credit report contains mistakes, the scores produced may not accurately reflect the risk of the business.

Factors that determine business credit scores

The following factors may be used to calculate business credit scores. Each scoring model is different, though, so some of these factors may not carry much weight, or may not be used at all.

  • Payment history

  • Age of credit history

  • Debt and debt usage

  • Industry risk

  • Company size

By far, the most important factor when it comes to business credit scores is payment history: does your business pay its bills on time? Some credit scores are almost exclusively calculated based on payment history.

Business credit reports may report bills that are just a day or two late, so paying on time is crucial to maintaining strong scores. In fact, to earn the highest D&B Paydex score, you must pay early, before your due dates!

Business Credit Scores 

Business Credit Score                                                                            Score Range

Dun and Bradstreet PAYDEX                                                                  0 - 100

Intelliscore PlusSM from Experian                                                       0 - 100

FICO® LiquidCredit® Small Business Scoring Service℠                 0 - 300

Equifax Business Delinquency Risk Score                                           224 - 580

 

IS YOUR BUSINESS "CREDIT WORTHY?"

With our business credit program, we know what business owners need to get approved for both initial and advanced business credit.  Our team has built a program to make sure that businesses are credit worthy before and while they build their business credit. 

Below is a checklist we have used which outlines some of the things in our program that we know make a difference. 

Business Credit Credability Checklist.png