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All business, whether large or small, need money at some point to further growth, get through slow spells, or purchase needed supplies. There are many options for a business to use when seeking these funds. Business lines of credit, loans, credit cards, and even angel investors can provide the needed funds for a business in need. However, in order to qualify for many forms of credit, businesses must have good credit scores.
Credit scores are determined by tradelines in the business’s credit history. Business tradelines are lines of credit that carry the name of the business or the business owner as an authorized user. Businesses that have existing lines of credit have tradelines already on their credit histories. New business owners can purchase the right to be named on established tradelines in order to boost their credit ratings.
Business credit scores are slightly different than personal credit scores. The business credit score is called a Paydex score. Dun and Bradstreet is the company that assigns Paydex scores to businesses, and the Paydex score is the first item that potential lenders will look at after looking at your personal credit score. The highest possible Paydex score is 100, but most lenders are looking for a score of 80 when dealing with new business. You will not have a Paydex score until you have had at least four different companies report your repayment history. This means that new businesses often are not assigned one of these scores, simply because they do not have any loans that have been reported. However, Paydex scores are not just affected by lenders. They are also affected by vendors. If you pay your vendors on time and the venders report to Dun and Bradstreet, it will increase your score.
Business tradelines are an important part of the overall credit history of any business. When you add business tradelines to your credit profile as a business, it will boost your Paydex score. The trick is finding tradelines that your business can purchase that belong to seasoned corporations. These seasoned corporations have established credit histories, and adding their lines of credit, loans, or other forms of credit to your credit history will instantly boost your score.
Business tradelines are important because they can be the difference between qualifying for a much needed loan or being denied. Because the business tradelines that you purchase for this reason are not permanently on your credit history, they provide a short-term solution to your credit problem. They will simply give you the boost that you need to secure the credit necessary for you to continue growing your new business.
The bottom line is that tradelines, in many situations, are the only way a young business will be able to appear established in the eyes of potential lenders. This helps you appear to be a good risk to the lender. If you are in need of credit for your business, yet do not have any credit history, you may want to consider looking into business tradelines to help you get the money you need.
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businesses must have good credit scores 
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