Updated: Feb 3
When looking to establish trade lines for your small business, there are some hard and fast rules you want to follow, especially if you are expecting those trade lines to eventually report future business transactions to D&B and other corporate credit bureaus. If you don't set them up correctly, you could be throwing good money after bad.
While it's easy enough to set up a new account with anew supplier, if you don't know the base criteria for setting up those accounts, you may never see any benefit to the purchases if your payment history never makes it into your report. Some companies will report your transaction history to the bureaus automatically, even if you only set up an online account and prepay when you make your purchase. But none of these trade lines are going to do you a lick of good if you don't create the account correctly in the first place, so here are:
EIGHT QUICK NEW VENDOR TIPS to make sure you get the most bang for your business buck...
The first thing you want to do is make sure your D&B report has the correct name and physical location. Think of auto-reporting as a puzzle in which all the pieces have to fit perfectly into place. If your company's base data doesn't match what your new vendor has on file, the payment history may not get associated to your credit report.
Be sure to set up your online account as a commercial account. On some websites, you are given the option to choose between business and personal use, but others will just give you the option of adding a business name, EIN number, or DUNS number. Some eCommerce websites give you an option of applying a specific purchase order number to each individual order so they can differentiate between personal or commercial purchases.