You’ll need at least three trade lines to get a Dun & Bradstreet credit score (called a Paydex score). You can get trade lines with large retailers, such as FedEx, Home Depot, or Staples. Ask the vendor to report your payment information to Dun & Bradstreet if they aren’t doing it already.
Pay your bills early. A history of timely payments will improve your business credit score. It’s also important to pay early, since that’s the only way you can qualify for the highest Paydex score. Avoid using too much credit. Limit your use to 20-30% of available credit. [4] X Research source Clean up your public records. Bankruptcies, liens, and court judgments against your business will all lower your credit score. If a client has a lien, try to pay the debt and get the lien released.
You’ll need to pay to see your business credit score. Contact each bureau individually. You can get your Experian credit history for around $36. 95, your Equifax score for $99. 99, and your Dun & Bradstreet for $61. 99. A credit score over 80 is generally good and should qualify you for loans. If your business credit is weak, consider leasing a car in your company name instead of buying one. [6] X Research source
You should never buy a car for personal use through your business.
You can also expect the lender to pull your personal credit history as well. For this reason, you should get a free copy of your personal credit report and check it for errors. Dispute errors with the credit reporting agency that has the wrong information. [9] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source
Compare interest rates and other terms so that you find the most competitive loan. You shouldn’t assume that the dealership is giving you the best deal, though obtaining financing from them might be the most convenient.
Think carefully before doing this. The lender can sue you and come after other personal assets to satisfy the loan.
You can obtain insurance from large insurers such as Geico, Allstate, and Progressive. Also check for local insurers in your phone book, who might offer better deals. If you don’t know where to look, reach out to the insurance agent who sold you business liability insurance.
Send a member/manager of the business to register the car and not an employee. The member will need to show their driver’s license. Remember to pay all registration fees using your business bank account. Don’t cut a personal check.
