I want to define a few business credit terms before i continue
i was going to start writing about the net30 accounts i ordered from then realized that some people do not know what net30 is..lol..so hear goes my simple definition thingy..
LOC - line of credit
Vendor line - a line of credit with a vendor such as dell, home depot, lowes.we know them as store cards or store credit in the personal credit realm
Net 30 Accounts - a line of credit usually extended by a vendor that has to be paid in full in 30 days….this is the only way this is seen as a positive payment if the balance in paid off in or before the 30 days..
Revolving Line of credit - this is a line of credit like your normal credit cards..where you have an interest rate and is given a minimum payment to pay every month…vendor lines come on “net 30″ terms or “revolving” terms.
PG – In the business credit world this stands for “personal guarantee”. This is a key element to business credit. You do not want to “PG” any accounts if you do not have to. This is where the separation of the credit liability between your business and personal credit comes in…
DNB – Dun and Bradstreet. This is one of the two main business credit agencies. DNB is like equifax for business.
PayDex Score - This is the goose you need to get that will lay the golden credit eggs..lol.. Your paydex score is the score you need from DNB. Its your business credit sore with dnb. This score is out of 100 and a 75+ is considered a good paydex score. You get a paydex score when companies report to dnb that you did business with them and you paid on time.
Experien Business - This is the other business credit agency
if i missed anything let me know…
when definitions come up in the future i will all them to this post.