Enhancing Your Payment History

Updated: Feb 3

By now, you probably already know that you need payment history to boost your business credit scores and ratings. What you might not know is that you need that payment history to come from a variety of suppliers across an array of industries and resources to get the most benefit and convert those excellent credit scores into excellent credit approvals. Any business can show a history of paying their bills on time. Companies do it everyday — and usually by accident.

But knowing which suppliers, industries, and reporting habits will benefit you the most seems to evade even the most savvy business professionals. So I'm going to take some of the mystery out of the matter by letting you in on eight tips and tricks you may not be aware of.

#1 - Variety is the spice of credibility While having four office supply resources may give you a Paydex score, it isn't going to benefit your scores as much as having two office supply sources, a paper distributor, and a printing company / or two auto parts retailers, a tire store, and a web service provider / or two computer retailers, an electronics supplier, and a repair technician. You need variety to show that your business is strong and viable. You need more than just "payment" history, but rather should aim for "transaction" history with a variety of trade lines that actually pertain to your business and industry. #2 - Who you buy from matters There are thousands of vendors, suppliers, agents, retailers, creditors, and lenders who auto-report payment history to D&B and/or the other corporate credit bureaus. Using just a few of these companies helps to provide an ongoing, constantly refreshing payment history that is an awesome boost to the Supplier Evaluation Risk rating and Delinquency Predictor Score. But don't forget about your regular suppliers! If they have a D&B file of their own, they may qualify to manually report your prompt payment history to D&B once per year, which helps to boost your Credit Limit Recommendations and D&B Viability Rating. You can check for your suppliers in D&B's system by searching for their business on D&B's website.