Too many small business owners are in the mindset that building corporate credit should be done quickly and then not given another thought. What they fail to realize is — if you build that credit correctly while you are in the process of building your business —it will continue to grow and work for you long into the future.
No matter what you do, your business requires tools. A chef needs pots, pans, and food to prepare. A car dealership needs access to vehicles, a place to sell them, and people who know what their talking about. A realtor needs properties, signs, phones, and sales professionals. But even with all these elements in place, a weak corporate reputation can keep your potential clients and customers fromtrusting, and keep your business from being able to succeed.
A strong corporate reputation is required in today’s tough markets — equally as important as any other tool in your chest. But if you are currently working with a company that is using shady techniques, you may find out it will cost youmore to get to your goals, and could cost your business it’s reputation. You should know what is actually in store for you before you begin.
For over 175 years, Dun & Bradstreet® has been in the business of measuring risk. They have made it their business to gauge your business on a standard of how it performs against other companies your age, your size, and in your industry. They have seen businesses grow and thrive while others crumble and fail. And they have learned their lessons by thwarting the efforts of those who attempt to deceive creditors and suppliers.
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D&B® may not always be right, and they certainly won’t always make it easy, but they have fought hard to become the standard by which all others are judged. If there is negative information in your corporate credit file, they provide options to dispute it. If there is missing information, they provide free services to correct the data. If you have vendors and suppliers who can provide verifiable payment history, they provide options for reporting that information.
If D&B® sees certain reg flag behaviors, they could put your credit file under investigation, downgrade your creditworthiness, or even sever your ability to get any credit at all. Their subjective algorithms and trained eyes will spot pattern behaviors that indicate risk, and they will stop it dead in its tracks.In short, they understand that alot is riding on reputation — theirs and yours.
Starpoint Credit Solutions understands that, as well. Having been employed and trained by D&B®, we understand the data and it’s impact on your credit reputation. We structure our strategies to meet or exceed their standards. We strive to build a solid, well-rounded corporate credit file that will continue to work for you as your business grows. We know there is no one out there who knows more about your business than you, so we work directly with you,one-on-one, to ensure the best possible picture of your business is presented.
Below, you will see what some companies may tell you about how to build corporate creditcompared against what Starpoint will practice when getting you there successfully. We see where these risky strategies have gotten others. We have seen good businesses fall in waste. We hear the horrorstories everyday. We don’t want you to become one…
RISKY BUSINESS –The use of shelf corporations to build credit for a companythat is not functioning as an active entity.
STARPOINT SAYS –Does not recommend the use of shelf corporationsbecauseit requires the business owner to provide falseinformationthat can potentially lead to federalcharges of bank fraud. Use your own business. If you don’t have one, start one.
RISKY BUSINESS –Will promote the sale of CPN numbers in an effort to hide poorpersonal credit history.
STARPOINT SAYS –Does not recommend the use of CPNs because they are aknown indicator of prior disreputable activity and willeventually trace back to the user and cause legal concerns. Build up your business credit so itis not reliant on your personal.
RISKY BUSINESS –The use of virtual addresses and phone numbersto portray an active location for the business.
STARPOINT SAYS –While virtualaddresses certainly serve a purpose,D&B® willonly recognize the address where the business is actuallyoperating from, even if that is a residential address. Use the address and phone number your business operates from.
RISKY BUSINESS –The sale of “tradelines” as a means to quicklybuildupapayment history and profit at the client’s expense.
STARPOINT SAYS –You should start by adding your existing suppliers first, but alsoknow that many of these so-called “tradelines” provide Net30creditorpurchasingaccounts tonew businesses at no chargeand generally do not requirethe use of a personal guaranty. Add your own tradelines and open free accounts with new providers.
RISKY BUSINESS –Providing false information and/or financial statementsto support a business that has had no income or expenses.
STARPOINT SAYS –Do not do this. It is deceptive, fraudulent, and can causecross-contamination of any other business you may ownor be associated to in the future, not to mentionwillbringvery costly legal issues you cannot escape. Onlyprovide information that is verifiable and open to validation.
RISKY BUSINESS –Use of a credit “partner” to piggy-back off thesolid personal credit file of another person.
STARPOINT SAYS –This is extremely risky because it will permanently linkyourbusiness to the practices, reputation, andcredit file of someonewho may have (or eventually get) a disreputable/corrupted file. We recommend you do not put your business credit file at risk this way.
