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All Forum Posts by: Shannon Walton

Shannon Walton has started 0 posts and replied 1 times.

Post: Best ways to establish credit history with a new LLC

Shannon WaltonPosted
  • Investor
  • Charleston, SC
  • Posts 1
  • Votes 8

I realize this post is from almost 2 years ago, but it might help someone going forward.  I am working with a company through the mentorship group in which I am a part (they use the company, and I started using them too).  I was advised to apply for a DUNS number through Dun & Bradstreet.  After getting that number, I signed up with various vendors who report to D&B, like Amazon business for a line of credit that is payable in full with each statement (checks your personal credit, and you personally guarantee the account); Grainger (doesn't check your personal credit); Exxon Mobil gas card (checks your personal credit, and you personally guarantee the card); companies like Quill (do not check credit but report to D&B every month on your company's payment history).  Those are just a few examples - I am sure there is a list online of businesses that report to D&B.  I am not recommending any of these vendors, just listing a few for examples :) As you start to use these accounts, I was told to purchase $50/month on 4 separate accounts.  Over the course of 6-12 months, your company develops its own credit score, called a Paydex score.  This is the credit score for a business, equivalent to the credit score for an individual.  The idea is that eventually, your business will be able to stand on its own credit, and you will no longer have to personally guarantee or use your own personal credit to further your business.  I was told that the quicker you pay your accounts each month, the higher your Paydex score will be.  Bonus points for paying early, even.  It's not a quick fix, but it was nice to discover that I could empower my business with its own business credit!  Hope this helps!