Business Credit Management Advice for Every Stage of Business
Depending on your business stage, business credit can benefit your company in different ways. As a startup, you can use it to establish your reputation; as a growing business, you can leverage it to win bids and get funding; as a medium or large business, you can use it to minimize risk and manage cash flow. No matter where you are in your business life cycle, there’s a business credit benefit for you.
Business Credit for Startups
If you’re brand new to the business world, one of the first things you should do is establish your business credit by getting a Dun & Bradstreet D-U-N-S® Number. This nine-digit number creates a business credit profile for your company, which you can potentially impact and leverage. Once you’ve gotten your D-U-N-S Number, you can start building your credit and reputation.
As a startup, you’ll likely be relying on friends, family, savings, and possibly investors to help you fund your business, but it’s imperative you start building your business credit early so that when your more established business needs a loan, you’ll have the scores and ratings to help you get one.
How Growing Businesses Use Business Credit
Once you’re past the startup stage, your business credit truly becomes an asset. When you’re in the growth stage of your business, you can leverage your business credit in multiple ways. You can use it to help get funding, win bids, get more favorable terms and conditions, manage your cash flow, minimize risk, and more.
Business Credit Management for Medium and Enterprise Companies
As a medium or enterprise business, business credit can still play a big role in your company. When you’ve reached this stage in your business, you should focus heavily on minimizing and managing risk. You likely have a growing or large workforce, information or data to protect, and standards or regulations to meet and comply with. Your business can face a multitude of different risks, some of which you may never have considered before.