Business credit management, when done right, can pay off just as much as having a high personal credit score. The same is true for having bad credit — it can take a long time and lots of help to repair. Lending companies have business credit management departments and report to credit bureaus regularly, but late payment reporting standards vary from company to company.

Business credit management is simple when you rely on the help of credit risk management companies. Rebuilding credit is a bit harder but definitely possible with business debt consolidators and counselors.

Make sure your credit management solution incorporates the following:

1. Establish business credit correctly the first time.

2. Monitor your credit management information and scores strictly.

3. Proactively repair any negative marks on your business credit report.

Action Steps
The best contacts and resources to help you get it done

Establish business credit separately from personal credit

If you don't take the proper steps to separate your business credit from your personal credit, you may have to repair both concurrently. Form a corporation and apply for an employer identification number (EIN). You can then apply for business credit under the corporation name, not under your own name.

I recommend: Contact the Internal Revenue Service and apply for an employee identification number. Corp America, Inc. incorporates businesses for as little as $49.

Monitor your business activities with credit management firms

Most business rely heavily on computers, so it's just as important to safeguard your business credit information as it is your personal credit information. Computer hackers continually find new ways to pull valuable information from databases, but business credit risk management firms help you monitor your company's month-to-month spending and alert you to fraudulent charges or accounting mistakes.

I recommend: Identity Guard helps you take control of your business credit online starting at $14.95 per month. Request a free preliminary business credit risk assessment from Atradius.

Credit management firms can help your business rebuild credit

The first step in business credit repair is making sure you have a data universal numbering system, or D-U-N-S, number. The U.S. Government requires a corporation to have a D-U-N-S number, a unique sequence of 9 numbers. The number also gives business lenders the most up-to-date credit score. If you think rebuilding credit on your own is impossible, seek help from business debt consolidation companies who charge a flat fee each month until you pay off your business debt.

I recommend: Apply for a free D-U-N-S number at Dun and Bradstreet, Inc. Contact CFG Inc., a credit management firm and download forms for a consultation. Commercial Debt Counseling Corporation helps companies consolidate and pay off business debt.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Information on credit management is often available through business lenders. If you make late payments, call lenders and talk to representatives of their credit management departments about business credit management solutions.