Do you ever sit back and question why the business credit bureaus are in business? If you ever stopped to think about it, you would begin to understand that they are private companies in it to make a buck…a serious buck.
Before, I pull back the curtain on the business credit bureaus, it’s important to know that there are two main credit bureaus, Dun & Bradstreet (D&B) and Corporate Experian. Sure, there are countless others, but these are the main ones you should know about because most lenders and companies go to these guys.
Both D&B and Experian rate your business by giving you a score. D&B has a Paydex score and Experian has an Intelliscore. These scores are important to you because that determines.
They bureaus are in business to sell information – your information. Not only do they charge companies to pull your business credit report and score, they sell your information to lenders.
Now this could be a good or bad thing, depending on you score. If your company has a bad score, you are less likely to get financing. However, if you have a great score, you will be bombarded with offers.
The reality is that lenders will buy the names and addresses of most of the corporations on file with D&B and Experian, and send offers in the mail. However, if you are a company in good standing. you will be bombarded with offers. In addition, you’ll get better terms and conditions.
Who likes the idea of banks chasing you to have access to their money? Keep a good score and you’ll be flying high!
