How To Establish & Build Business Credit

How to Build Business Credit

A program for building business credit should be designed to fix, change, correct, and delete information that is hurting the credit scores and indexes of your company.

Due to the complexity of business credit reporting, scores and indexes can fluctuate for a variety of reasons. Score and index threshold changes can be caused by something as small as a recent late payment from a vendor account or a high dollar collection account caused by damaged goods returned to the supplier with a resolution pending.

The company you work with should have a team of business credit experts who will cater their approach to the repair and building of your company’s credit based on your individual needs and the requirements within your industry.

They should not be in the lending business and be looking to offer you funding at exorbitant pricing as many companies do. The sole focus is on helping you by getting your credit to the best possible position so you have many options to create success and growth for your company.

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Many Industries Require Consistent Profiles, Scores, and Indexes

When businesses apply to become a partner with major retailers such as Wal-Mart, Target and more, they should be prepared to maintain consistent and excellent business credit scores, reports, and indexes. Major retailers will drop their partnership, without warning, with any supplier who falls below their required score threshold.

Even smaller retailers, if they’re smart, will weed out any higher risk suppliers. North Shore has taken the time-consuming burden of establishing, repairing, building, and monitoring credit off the hands of many businesses who rely on successful partnerships and by doing so they have been able to establish and maintain profitable opportunities.

Case Study

Nate owns a construction company, during the recession his business suffered immensely and he ran into severe financial issues. He was forced to lay off several of his valued staff members and fell behind on accounts with suppliers that he had developed a great relationship with. The only reason Nate was able to stay afloat was due to his larger, more regular, clients. After the economy picked back up Nate saw an upswing in revenue and decided it was time to rebuild his once flourishing business. In order to begin landing new larger accounts, he knew that he had to make right with his suppliers. Nate came to find that his suppliers were no longer willing to offer him payment terms; he had gone so far beyond terms that his delinquencies had turned into judgments against his company. His business credit was butchered leaving him with few options for obtaining good payment terms, let alone landing larger accounts. After working tirelessly to speak to his suppliers and the bureaus nothing changed – he could not even make contact with any rep at Equifax. Nate feared that if he did not take action his business would backtrack to where it was in 2009. During his Google searches, he recalled our company and decided the best course of action was to reach out to a business credit specialist. Nate took a leap of faith. Within 90 days we were able to remove 80% of the accounts impacting each report and we helped him rebuild his once healthy profiles with the right accounts and information.  Nate’s business credit was back on track.