We often obsess over our personal credit scores, but how much thought do we give to our business credit? In this episode, I’m joined by Gerri Detweiler from Nav to demystify the world of business credit. We explore why most of us are in the dark about our business scores, how these scores impact our ability to secure supplier terms and loans, and the simple steps we can take to monitor and build a healthy financial profile for our businesses.

Key Takeaways

• The Business Credit Gap: Unlike personal credit, there are no federal requirements for free annual business credit reports. Most of us don't even know our score exists until a loan application is denied.

• The Big Three Bureaus: We look at the major players Gerri mentions: Dun & Bradstreet (D&B), Equifax Commercial, and Experian Commercial.

• The Power of Terms: Paying our Net 30 supplier invoices on time isn't just good for the relationship—it’s a primary way to build a positive credit history, as many suppliers report to the bureaus.

• Separating Personal from Business: While our personal credit often remains a factor for small businesses, establishing an LLC and obtaining an EIN and DUNS number are critical steps toward our financial independence.

• Hidden Use Cases: It’s not just for loans! Business credit can affect our insurance premiums and our ability to land large commercial partnerships or retail distributions.

• The Debt Trap: Gerri explains the hidden cost of fast capital and provides resources to help us calculate the true APR of financing offers that might seem cheap on the surface.

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Website: https://www.nav.com/

More About the Episode Sponsor:
T&O Strategic Advisory (http://www.tostrategicadvisory.com/) - Offering a wide range of tax and accounting services, including entity election and S-Corp advisory.