Whether you are in the beginning stages of starting your own business or looking to manage your current business’ credit more efficiently, it is always

important to stay on top of your finances. According to the National Small Business Association, 78 percent of small businesses carry some form of debt (loans, credit cards, property mortgage, invoices owed.)

As your business continues to grow, it is important to build a good credit record for your business that is separate from your personal credit record. Getting credit in your business’ name can help you qualify for lower rates on loans and leases, and can help protect your personal credit record, which could suffer if you have too much business debt.

BBB recommends following these simple steps to effectively manage your business’ credit:

Establish a consistent identityAlways use the same business name, address and phone number so it will be easy for the credit reporting agencies to keep your records in one file. Consider incorporating to legally establish a business identity that is separate from your personal identity.

Open business accountsGet a separate checking account for your business. Also, open an account with an office supply firm or other supplier that reports the transactions to business credit reporting agencies. Make small charges and pay them before the invoice arrives. Unlike personal credit scores, you will get extra credit for paying your balance before the due date.

Apply for a business credit cardLenders will generally ask for your business’ tax records

and earnings statements from the past few years so they can see how much you have earned in the past. They may also ask for a business plan so they can assess your potential for future earnings. Overall, lenders are interested in looking at your cash flow in relation to your expenses and your total debt in relation to your earnings. Provide all of this documentation along with explanations to prove to lenders that you expect to earn enough money to pay your bills in the future.

Apply for a Dun & Bradstreet (DUNS) numberA DUNS number is used by potential lenders to determine the likelihood that your business will make on-time payments for loans, equipment and office leases. The better your score, the better terms and rates you are eligible to receive. It usually takes 30 days to establish a DUNS number, or you can pay an additional fee for an expedited account. It may be a good idea to provide extra information about your business for your credit file. After you have a DUNS number, check your account for errors and make sure you are getting credit for your early payments.

Check your business’ PAYDEX scoreSimilar to a credit score for individuals, a PAYDEX score distills the information in your Dun & Bradstreet credit report into one number, which shows potential lenders the likelihood that you will make your payments on time. These scores range from a low of 0 to a high of 100. A score of 80 to 100 generally means that you pay your bills before the due date; 50 to 79 means a medium risk of late payment (averages 30 days or less beyond the loan’s terms); and a score of 0 to 49 means a high risk of late payment

For more business tips you can trust, visit: www.bbb.org/credit-management/small-business-credit

Austin • Centroplex • Corpus Christi • Laredo

Permian Basin • San Antonio • Victoria • Waco

October 2011

VOL

61 No. 10

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How to Manage Your Business’ Credit Wisely

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NewAugustAccreditedBusinesses

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AUSTIN290 E Auto Market, Inc.360 Telecommunication4 IP Technology and Media, LLCA & B Car ExpertsAbernathy AirAcapoolco Pool ServicesAdvanced Mortgage SolutionsAdvancing RobotsAffordable CasketsAffordable Plus PlumbingAllied Security Links LPAlways Reliable Plumbing, LLCAtlas Realty, Inc.Austin Custom DecksAustin Professional CouriersAustin Vascular InstituteAustintatious SmilesBo Farmer Air ConditioningCaden Roofing Sheetmetal &

General ContractorsCampers Direct America, LPCantu Imports & NurseryCentronisClean - 101Complete Homes ProsDiaz Martial ArtsElite Towing and RecoveryEnergy AtticESI Masonry Supply, Inc.Firstview Consultants LLCFloral Renaissance IncFreedom Solar LLCFriendswood RoofingG & F Air Conditioning & HeatingGreen Action RemodelingHammers Plus LLCHardy International, LLCHoodz of Northern AustinIn Store Advantage Solutions, IncInfinity Conversions LLCInland Truck Parts & ServiceJohn Christian CompanyLaw Office of M. Elizabeth RaxterLegal Accountability Work GroupLyons Pool & Spa ServicesMaster Tech MobileMatt’s Electrical Work, LLCMaverick ConstructionMcMinn Law Firm, LLPMonarch GraniteMullins Roofing CoNTX Security, Inc.One World Montessori SchoolOpt in People, LLCOsborne EngineeringPeek and Toland Law FirmRAD FurnitureRam Air Heating & Air ConditioningRocky Mountain Masonry, LLCRupert & Associates, PC

Rush ConstructionSoraya’s ChildcareSpott Pest PreventionTexas SupportThe Austin Fence CompanyThe Gold Bullion GuyThe Law Office of Steve GibbinsThe Three GracesThink Group AustinTilson Home CorporationTitleist Asset ManagementTristar Commercial LLCTrustworthy House Cleaning

Services, LLCValue PlaceWaterPro, Inc.Well GroundedWilli Law Firm, PCWilson IrrigationZappowee

CENTROPLEX/WACOBryce Avenue ApartmentsFort Hood Area Association of

RealtorsHeights ChiropracticMitchell and Associates Inc.Pride HomesSeigman, Starritt-Burnett &

Sinkfield, PLLCThe Dog SpotThe Real Estate MarketplaceTrust-N-Us ServicesAmerican Amicable Life Insurance

Company of TexasGilfillan Paint and HardwareHillsboro Storm SheltersInsurance for LivingJackson Electrical ServiceOccidental Life Insurance Company

of North CarolinaPioneer American InsurancePioneer Security Life InsuranceThe Camille House Bed and

BreakfastWesley Woods Alzheimer’s Care

Center

CORPUS CHRISTI/VICTORIAAbsolute Alarm, Inc.Alaniz & Perez Garage IncAlbritton ConstructionAmerica’s Swimming Pool CompanyAshley Furniture HomeStoreAztec Chevrolet Buick GMCEG RoofingGemini InteriorsJanet’s Cakery, Inc.One Stop ConstructionRon’s Handyman Ruby Roofing

TopNotch EnterprisesUnited Heating & AirMaria Reyes Farmers Insurance

PERMIAN BASINADT Security Service, Inc.Al’s Water SystemsBasin Safety Services, Inc.Big Dave’s RentalBlazin’ Safety Consulting, Inc.D’s Sports Cards & MemorabiliaDesert HavenDr. Charles A. Lively MD, PAFamily MedicineHirt InsuranceInHome Care, IncInsurance Education Centers of

AmericaJ&J ContractorsJody K. Upham, Attorney at LawJohn Crane Production Solutions,

Inc.Julio’s Body ShopKarens Learning CenterKathy Churchill Insurance Agency,

Inc.Lamun Lusk Sanchez Texas State

Veterans HomeLisa Marie Roberts PhotographyLopez RoofingMaria Valeriano Insurance AgencyMark Payne HomesMiller, Bicklein & Tysinger PCNicholas Law FirmO.T. Garza, M.D., P.A.Parks Methodist Retirement VillagePat Madison and AssociatesRapid Oil Change, IncRecom Resource RecoverySalazar Service & Trucking CorpStark Surveying, LLCStephen’s Construction - IrrigationTot’s TherapyTrip FantasticVince’s Radiator ServiceWanda’s Health Food ShoppeWinches IncorporatedYoung’s Building Systems

SAN ANTONIO/LAREDOA 2 Z Learning CenterA-AAA Garage Door Service CoA.L.I. Home Repair Remodeling

LLCAAF - San AntonioAccessAbility Home ModificationsAdvanced Custom CabinetsAdvanced Fire InvestigationsAir TexasAppearance Professional Painting

Services

Avco Construction & Foundation Company

B&R Diesel ServiceBart Ferguson Trucking & Materials,

Inc.BlueCooper, LLCBriggs RenovationsCapital VidaCollision QuestDBC Tuning LLCDe La Garza Fence Company, Inc.Dilley Allergy & Asthma Specialists,

LLPG E Harrington Builders, Inc.G Tex Painting & RemodelingGlobal II Alarm SystemsGPS of TexasHamm & AssociatesHandyGreen LandscapingHelping Hands ServicesHybrid Heat and Air, LLCJ.B. Woolf Sheds, L.L.C.Longhorn Structures & Metal SalesLouis H. Cadena DDS, PLLCM & R Auto & Diesel ElectricMarc Dalmolin Motors, LLPMichael Scott Zimmerer, PCMonarca Motors, Inc.Mr. Fix It Appliance RepairNetcare Pharmacy #1Ortega PlumbingQBS Graphics & SignsQuality Access Control Systems, Inc.Quality MetalsQuality Urgent Care of AmericaRocky Hill Equipment Rentals, Inc.Roughneck GraphicsSAGC Contractor IncSalof Refrigeration Co, Inc.San Antonio Math TutorSenior Path Specialists LLCSimpson, Foster, and Gold, LLPSinclair Customer MetricsSouth Texas SpiceSprinkler ManagementTexas Air Masters Service CoTexas Air Repair, LLCThe BettersworthThe Salt GroupTom the HandymanTurn 2 ElectricVantem PanelsVeriClean Janitorial Service LLCVinnies Painting & RemodelingZurita RemodelingFamily Nissan of LaredoPaul Young Chevrolet, Inc.West Texas Doors, LLCWest Texas Warehouse Equipment

& Supply, LLC

TTOct11.indd 2 9/21/2011 5:09:36 PM

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Special thanks to our Corporate Partners!

You’re Invited to BBB’s Free Shred Day!

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O�cial variations of the Castle & Cooke Mortgage, LLC logo:

Join BBB for FREE on-site shredding this month!

BBB will be at the following locations collecting sensitive paper documents for shredding and recycling:

Corpus Christi - Saturday, October 15, 9-1pmKIII-TV studios (5002 S. Padre Island Dr.)

Austin - Saturday, October 22, 9-1pm Dell’s Round Rock Campus, Building 8(2401 Greenlawn Blvd.)

San Antonio - Saturday, October 22, 9-1pmWonderland of Americas Mall between Target and Burlington Coat Factory (4522 Fredericksburg Rd.)

Killeen - Saturday, October 29, 9-1pmat 1st National Bank Texas (2201 Trimmier Rd.)

Permian Basin Saturday, October 15, 10-1pmComplex Community Federal Credit Union(4900 E 52nd St, Odessa, Texas)

Monday, October 17, 4-7pmComplex Community Federal Credit Union(1301 N. Main St, Andrews, Texas)

Saturday, October 22, 10-1pmComplex Community Federal Credit Union (310 W. Longview Ave, Midland, Texas)

Monday, October 24, 4-7pmComplex Community Federal Credit Union(1117 S Stockton Ave, Monahans, Texas)

The last BBB Shred Day events helped consumers and businesses shred more than 140,000 pounds (70 tons) of personal

documents.

BBB can’t wait to see YOU there!

Thank You BBB Shred Day Partners!

Thank You BBB Shredding Partners

Thank You BBB Shred Day Media Partners

Thank You BBB Shred Day Sponsors

TTOct11.indd 3 9/21/2011 5:09:43 PM

Better Business Bureau, Inc.1005 La Posada DriveAustin, TX 78752

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PERMIT NO. 60

BetterBusinessBureau Trust Talk | October 2011

Trust Talk is published by Better Business Bureau 1005 La Posada Drive, Austin, TX 78752. Trust Talk is published for executives and employees of BBB Accredited Businesses in its 79-county service area. All rights reserved: the contents of this publication may not be reproduced in whole or part without written consent of the publisher. References to or mention made of any company, product or service herein is not to be interpreted, per se, as statements derogatory of such company, product or service, but as information obtained from sources believed to be reliable for the use of BBB Accredited Businesses and subscribers. Because the matters contained in this Trust Talk concern matters of the utmost public importance and concern in providing a free flow of information to our companies concerning business enterprises in the Central, Coastal, Southwest Texas and the Permian Basin area, BBB encourages BBB Accredited Businesses to contact their local BBB with any follow-up material concerning the reports in this newsletter or any other matter to assist BBB in fulfilling its function of improving the economic system through informed decision-making.

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How to Manage Your Business’ Credit Wisely ....................

New Accredited Businesses .…….…….........................................

You’re Invited to BBB’s Free Shred Day ...............................

August Activity Report ....................…................................................

In August 2011, your BBB...Increased total Accredited Business locations to 10,577Provided customers with 142,403 BBB Business ReviewsHandled 1,976 disputesAssisted 7,108 people over the phoneHosted 498,201 website page viewsSent 1,098 Request a Quote customer referrals to Accredited Businesses

Revocations 3 Graces Skincare & Spa: Failure to maintain required licensing

Aloha Pools of San Antonio: Failure to respond to one or more customer complaints filed with BBB

Ecowater of Corpus Christi: Failure to respond to one or more customer complaints filed with BBB

In August 2011, your BBB was mentioned 387 times by 40 local media outlets including…

Get news as it happens! Join BBB’s press release list at centraltx.bbb.org/press.

BBB Corporate Office1005 La Posada DriveAustin, TX 78752

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