There are two questions I ask my clients more than any others:
What was the last thing you purchased online?
What are you shopping for right now?
How they answer those questions is an invaluable tool in determining specific ways they can continue to build and boost their business credit capability, and sometimes... without even trying!
Believe it or not, most small business owners are leaving a lot on the table in terms of their vendors and suppliers, and it's usually because they think prepaid purchases can't impact their commercial credit scores and ratings. In reality, that couldn't be further from the truth.
Let's look at Edgar, one of my "Maintenance & Monitoring" clients. He initially became a client a couple of years ago after his dysfunctional D&B report cost him a high dollar contract. Now, his credit report is in awesome condition and he gets approved for just about every credit line he applies for.
From time to time, though, an inquiry will post to his D&B report that's outside the normal parameters that I'm used to seeing. Last month, an inquiry came through under "Retail hardware", so I asked him if he knew who that vendor might be. I track my client's inquiries because those usually represent companies who will be autoreporting payment history to D&B later - after he makes a purchase.
As it turns out, the only purchase Edgar had made (outside his normal vendors and suppliers) was an online account he created to purchase some drawer hardware online. When he told me the name of the supplier, I was surprised. While it was a company I'm familiar with, I didn't have them on my "potential autoreporter" list.
Sure enough, a new Net 30 payment appeared in Edgar's D&B report last Monday under "Ret hardware", which confirmed NOT ONLY that the supplier is an autoreporter, but also that even prepaid purchases made online get reported equally (and weigh as heavily on the scores) as other purchase made on invoiced Net 30 terms.