How important is a D&B Credit Score to your Business?

[sscates]

Hey guys,

Just starting to realize the importance of a company credit profile. As I understand it, the D & B credit score is based soley on the business payables, not on personal credit. It's becoming difficult to personally guarantee growth of my company based on personal credit. Also, not the smartest idea either to bring yourself to financial ruin if something goes south in the company.

Any pros or cons on establishing a complete profile with D & B would be appreciated. They said to establish our account with 20 payables per month would cost $899. Seems kinda strange to be paying a credit rating company to establish a worthy credit score.

thanks, steve
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[Loomis]

D&B calls me (from India of course) about every 6 months to say that people are checking my business' credit, but the profile doesn't exist, blah blah blah. They're long on the sales pitch, but offer dubious results for your money.

Having a D&B profile won't keep you from having to make personal guarantees on business debts, even if you are incorporated. The best thing to do is establish a relationship with a community banker. Get to know them, make them see your creditworthiness, and make them work for your business. I avoid electronic deposits, as I like to walk into the bank and meet face-to-face with the banker so she can see us making regular deposits. It makes a difference, and she will go to bat for us if necessary.

A strong balance sheet and track record with your bank carries a lot more weight than a D&B profile. American Express and our insurers don't have any problem figuring things out without it.

[daepp]

Zilch. Mostly a scam if you ask me. Wont get you out of personal guarantees, if required. Further, most want to sell to you. If you start small and establish credit with the vendor, their real world experience with how you pay your bills will speak volumes.

[red-beard]

If you want to contract with the government, you have to have a D&B number. But, you don't have to pay D&B for one. The "service" allows you to examine your credit profile, add in missing AP and company info (you want to add in the biggest/best ones). If there is incorrect info, they will check it and delete it.

Having a good D&B will help getting business credit.

[onlycafe]

d&b ......a total waste.

[sscates]

We started doing business with a DOD company in Belize and they required the number to do business. Simple enough to get a number, but the profile thing seemed a little bit much to pay for. I have heard all kinds of different opinions on this. I guess my banker would be the person to ask, as I will be asking him for money in the future.

This sounds a bit like buying your credit profile. Some of those scams that "scrub" your credit to bring your score up or something.

[peppy]

D&B call sometimes...I thought it was a scam.

[wdfifteen]

Originally Posted by peppy

D&B call sometimes...I thought it was a scam.

It is to some extent. They call me every now and then and tell me there have been inquiries into my credit history. But I haven't applied for credit, changed insurance companies, or done anything that I can think of to trigger an inquiry. If I asked them whose been asking, they won't tell me.
The whole credit rating industry is suspect. These "free credit report" offers for your personal credit information is a total scam, and it's done in collusion with the Equifax, Experion, and Trans Union. It pixxes me off that they gather information about you and put it on the market - if you don't want them selling it you have to contact them to tell them not to.

[widebody911]

Dave & Busters?

[RRico]

D&B is not a true credit rating company like Equifax, Transunion, etc.
Their corporate credit rating system is based soley on trucking / freight companies,
utilities, and minor types of credit. They really dont include the rating of your actual
suppliers if they are small. So even if you pay your bills with your suppliers on time,
your rating on D&B may not reflect this if your supppliers dont report to them.