Business credit

[Darrell Hayes]

I have just done my llc looking to start building business credit. Does anyone know steps to building and the requirements. Thanks

[David Dachtera]

@Darrell Hayes,

My tax and legal expert's office has a whole separate department with a sign on their wall which reads, "We fix LegalZoom entities".

Dun & Bradstreet is to the business world what FICo is to the consumer world. They have a credit scoring system called Paydex which is based entirely on payment history. The optimal score is 80: pays as agreed. Pay early and you can get a 90 or even 100. Pay late, and you get marked down for how late the payments tend to be. 1 day late = 70, for example, and lower scores for later payments.

There is also Experian for Business and Equifax for Business. Each has their own scoring system.