Dunn & Bradstreet Number, What can I do now?

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Dunn & Bradstreet Number, What can I do now?

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Jamie Parker
Real Estate Investor · Memphis, TN · Member since 2016 · 417 posts · 140 votes

I recently received my Dunn & Bradstreet account number for my business. From what I understand is that having Business Credit allows my business to move away from personal guarantees on business lending. I would like to know what would be some best practices moving through the process of business funding and business credit.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
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Simply registering for a free D-U-N-S Number only creates a blank profile for your company,

To actually build business credit and generate a PAYDEX Score (the business equivalent of a FICO score), you have to obtain credit and pay history etc. Also there are very few institutions today that will do non recourse loans (meaning you do not have to personally guarantee them) - even those that are non-recourse many have carve outs on them that could allow for recourse.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5d

    Simply registering for a free D-U-N-S Number only creates a blank profile for your company,

    To actually build business credit and generate a PAYDEX Score (the business equivalent of a FICO score), you have to obtain credit and pay history etc. Also there are very few institutions today that will do non recourse loans (meaning you do not have to personally guarantee them) - even those that are non-recourse many have carve outs on them that could allow for recourse.

    7e investments53 Reviews
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    • Jamie Parker
      OP
      Real Estate Investor · Memphis, TN · Member since 2016 · 417 posts · 140 votes
      5d

      @Chris Seveney thanks for responding. Also thanks for the clarification of what D-U-N-S is vs Paydex. I am aware of non recourse loans on Multifamily Properties and some commerical lending Structures.

      I am working on my first fix and flip. I have used a line of credit at Sherwin Williams for a part of the project. That was pretty cool. Would lines of credit like Sherwin Williams, Home Depot, Lowes, Harbor Freight,... Help contribute to the PAYDEX score?

      My plan is to use my current LLC as an operational business and another LLC as a holding LLC. Its planning at this point, but winning an offer on a SFR Rental could bring the "planing phase" to the "execution phase" quickly. So thank you for your insight

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  • Lee Burns
    Investor · Chicago, IL · Member since 2018 · 329 posts · 160 votes
    5d

    The concept of business credit was one of my biggest paradigm shifts since exploring REI and financial independence. Be sure to go down YouTube university for basic concepts if you haven't already. It sounds like you'd benefit from Noelle Randall and Novarise Invest like I did

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    • Jamie Parker
      OP
      Real Estate Investor · Memphis, TN · Member since 2016 · 417 posts · 140 votes
      4d

      I read up on it.

      1 Trade Line

      1 Credit Card

      1 more of either one helps PAYDEX score.

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    • Lee Burns
      Investor · Chicago, IL · Member since 2018 · 329 posts · 160 votes
      4d

      I'd recommend getting a few trade lines. Grainger, Uline, and a few other companies offer the great net 30/60/90 terms. In time you'll get store credit then universal credit and yes you'll want to build and maintain your paydex. Happy to chat more if you want to reach out

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