September 2011
How to Manage Your Business’ Credit Wisely
Whether you’re in the beginning stages of starting up your own business or looking to manage your current business’
credit more efficiently, it’s always important to stay on top of your finances. The Better Business Bureau is advising
business owners to follow a few simple steps to help ensure the financial health of their business.
As your business starts to grow, it’s 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.
“It’s never too early to start to establish a separate credit record for your business, even if your business is still in the
very early stages,” said Chris Coleman, President and CEO of the Better Business Bureau serving Greater Iowa, Quad
Cities and the Siouxland Region. “Keeping your business cards separate helps with record-keeping — many card
companies provide special spending reports that can tie in with your business bookkeeping software and make it easier
to keep track of your business expenses at tax time.”
BBB recommends following these simple steps to manage your business’ credit:
Establish a consistent identity. Always use the same business name, address and phone number from the
beginning, 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 your first accounts. Get 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 immediately — before the invoice even arrives (unlike personal credit scores, you’ll get extra credit for
paying before the due date).
Provide key documentation. Lenders will generally ask for your business’ tax records and earnings statements for
the past few years so they can see how much you have earned in the past. And they may also ask for a business plan so
they can assess your potential for future earnings. They are often interested in looking at your cash flow in relation to
expenses and your total debt in relation to your earnings. Provide all of this documentation along with explanations to
present the strongest case, especially if you have irregular earnings throughout the year, to prove to lenders that you
expect to earn enough money to pay your bills in the future.
Apply for a DUNS number from Dun & Bradstreet, one of the major business credit reporting agencies (go to
www.dnb.com). It usually takes 30 days to establish a DUNS number, or you can pay extra for an expedited account.
Then make sure that the companies where you have trade accounts are reporting the information about your on-time
payments to Dun & Bradstreet. It’s also a good idea to provide extra information about your business for your credit
file. This is where potential lenders and others will find out about your business and the likelihood that you’ll make ontime payments for your loans, equipment leases and office leases, which will affect the terms and rates. After you have
a DUNS number, open a few more trade accounts with other companies that send information to the credit-reporting
agencies, make small charges, and pay those bills early, too. Check your account for errors and to make sure you’re
getting credit for your early payments.
Check your business’ credit score. Similar 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’ll 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/
President’s Column:
BBB Advice on Student Security –
What Every College Student and Their Parents Should Know
If life is defined by milestones, our family has reached a truly pivotal time as we send our first child to college. When we
left our son in capable hands at Loras College in Dubuque a few weeks ago we knew he was ready to “launch” but we
still have not stopped worrying about him!
As college students get settled on campus, fighting fraud may not be at the top of their list of priorities. College
students are susceptible to identity theft, however, and the Better Business Bureau recommends that they take seven
simple steps to protect themselves on campus.
In 2010, 8.1 million Americans – or 3.5 percent of the population – became victims of identity theft, according to the
2011 Identity Fraud Survey conducted by Javelin Strategy & Research and sponsored by BBB. The average mean cost of
identity theft is $631 and the average time to resolve identity fraud is 33 hours – valuable study time.
“Friendly fraud” accounts for 14 percent of all ID theft crimes. This means that new roommates and friends have just as
much potential of being as dastardly as a foreign-based scam artist phishing on the Internet. And identity thieves –
friend or foe – think nothing of dumpster diving (or rifling through unattended trash cans) for un-shredded paperwork
or even taking mail from unlocked mailboxes (or off a desk). They can even cruise social networking sites looking for
some personal tidbit that can unlock a wealth of information elsewhere.
It is extremely important for students to be vigilant in monitoring bank and credit card statements to spot
unauthorized activity. Sign up for security alerts on your accounts and have them sent to your mobile phone so you’ll
know if any changes have been made to your account. BBB recommends that college-bound students take the
following seven steps to fight identity theft on campus:
Send sensitive mail to your parents’ home or a post office box. School mailboxes are not always secure and
often can be accessed easily in a dorm or apartment.
Important documents should be stored under lock and key. This includes your Social Security card, passport
and bank and credit card statements. Shred credit card offers and any paper documents that have sensitive financial
information rather than just tossing them out.
Never lend your credit or debit card to anyone. Just say no if your friend wants to borrow your card or asks you
to co-sign for a loan or financing for items like a TV.
Make sure your computer has up-to-date antivirus and spyware software. Always install any updates and
patches to your computer’s operating system or browser software, which help keep your computer safe from any new
advances by identity thieves online.
Always check your credit or debit card statements closely for any suspicious activity. The sooner you
identify any potential fraud, the less you’ll suffer in the long run.
Check out unfamiliar websites with the BBB. Look for the BBB Accredited Business seal along with other trust
seals; click on the seals to confirm that they are legitimate.
Check your credit report at least once a year. You are entitled to one free report a year from each of the three
reporting bureaus: TransUnion, Experian and Equifax. Look for any suspicious activity or inaccuracies. You can do this
for free by visiting www.annualcreditreport.com.
Chris Coleman
Announcements: BBB Sponsors “Secure Your ID Day” Shredding Events
Muscatine: On October 4, 2011, 3:30-6:00 p.m. in the parking lot of Calvary Community Church, 501 W Bypass 61
the BBB, The Greater Muscatine Chamber of Commerce and Cintas will provide free document shredding.
Cedar Rapids: On October 8, 2011, 8:00 a.m. -noon in the parking lot of the Guaranty Bank Building, 3rd Avenue and
3rd Street SE, the BBB, Document Destruction & Recycling Services, Guaranty Bank, KCRG-TV, KMRY Radio,
Downtown District and City Revealed will provide free document disposal and shredding.
Official Notice: Annual Meeting
The Annual Meeting of Accredited Businesses of the Better Business Bureau of Des Moines, Inc., dba: Better Business
Bureau serving Greater Iowa, Quad Cities, Siouxland Region and the Better Business Bureau Education Foundation,
Inc. will be:
November 10, 2011 at Noon
Des Moines Embassy Club
666 Grand- Ruan Center
Des Moines, IA. 50309
Reservations are required. Lunch is $20.00. Please call Madeline at 515-243-5027 for information or to make a
reservation. All Accredited Businesses are welcome.
BBB INTEGRITY AWARDS NOMINATION FORM
The Better Business Bureau is currently seeking companies and organizations to be nominated for the
BBB Integrity Awards. The Integrity Awards were established to recognize companies and organizations
whose business practices and related activities in the community exemplify the BBB’s mission of
advancing marketplace trust. To nominate a company(s) for an Integrity Award, please complete the
information below and mail, email or fax it to the BBB. All companies nominated will be required to complete a formal
application. Awards will be presented in April 2012. Nomination deadline is December 12, 2011. You may nominate
your own company.
Company:___________________________________________________________________
Address:_______________________City:____________________St:______Zip:_________
Phone:(___)___________________Owner/Mgr./Principal(s):__________________________
Nominated by:_____________________________ Phone: (___)______________________
I have suggested that the above company be considered for the Integrity Award because (be specific):
New Members
ADEL
D & J Beverage
Beverages - Wholesale & Distribution
Daugherty Auction & Real Estate
Services
Auctioneers
AMES
ACS Drums
Musical Instruments - Dealers
Jet Drain & Plumbing Service
Plumbing Contractors
JRM Appraisals
Real Estate Appraisers
ANKENY
Muscle Glide
Massage Equipment & Supplies
BELLE PLAINE
Thys Motor Company
Auto Dealers - New Cars
BERESFORD
Cool Change Repair & Remodel
Contractor - Remodel & Repair
BETTENDORF
Prestige Auto Body
Auto Body Repair & Painting
BLAIRSTOWN
Thys Chevrolet
Auto Dealers - New Cars
BLUE GRASS
A-1 Sign & Crane
Signs
BONDURANT
Midwest Recovery
Recycling Centers
CARROLL
Total Performance
Auto Restoration
CEDAR RAPIDS
Brighten Construction
Home Improvements
Hometown Auto Group & U-Haul
Auto Dealers - Used Cars
Kieck's Career Apparel & Uniforms
Uniforms
Life Time Fence Company
Fence - Sales, Service & Contractors
Tommy Tucker Realty
Real Estate
CENTER POINT
Frankensigns
Signs
Nelson Cabinets
Cabinet Manufacturer
CLEAR LAKE
Larch Pine Inn
Bed & Breakfast
CLIVE
American Senior Benefits
Insurance - Senior Products
CORALVILLE
Rhodes to Fitness
Health Clubs
CUMMING
Home Treasures by Lori
Pet Clothing Designer
DAVENPORT
Brandon Pangburn Flooring
Contractors - Flooring
DES MOINES
Burgin Drapery Workroom
Draperies & Curtains - Retail & Custom
Energy Tech
Energy Audits
Fetch! Pet Care of Metro Des Moines
Pet Sitting Services
Fong's Pizza
Pizza
Freedom First Aid & Safety
Fire Extinguishers
Infinite Season
Garden Centers
J & S Custom Cycle
Motorcycles - Repairing & Service
P & P Stone Construction
Mason Contractors
The Henderson Business Group
Business Brokers
Thomas Bus Sales
Bus - Sales & Rental
DUBUQUE
AD Hoc Marketing
Internet Marketing Services
Budget Electric
Electricians
Haverland Home Cleaning
Cleaning Services
DYERSVILLE
Skidd Marks
Heavy Duty Equipment Repair
ELDRIDGE
Siegert's Balancing
Air Conditioning Contractors &
Systems
Superior Plumbing
Plumbing Contractors
HARPERS FERRY
Whit's Electric
Electricians
HIAWATHA
Walk in Bathing Solutions
Bathroom Remodeling
IOWA CITY
T Ryan DDS
Dentists
JEWELL
Jewell Family Chiropractic
Chiropractors D.C.
JOHNSTON
Green Earth Recovery & Cleanup
Environmental & Ecological Services
Minor Wreck Express
Auto Body Repair & Painting
Redfox Home Services
Home Inspection Service
KALONA
Affordable Metal Manufacturing
Metal Rolling & Forming
Computer Express
Computers - Dealers
Kalona Machine Shop
Welding
KEYSTONE
Keystone Savings Bank
Banks
LANSING
Lansing Auto Parts
Auto Parts & Supplies - New
MARSHALLTOWN
Sit 'N Sleep Furniture 'N Bedding
Furniture - Retail
MASON CITY
Clear Lakes Optics
Optometrists - O.D.
MOLINE
Midland Davis Corp
Recycling Services
MONTICELLO
Hardwood Dimensions of Iowa
Lumber - Wholesale
MUSCATINE
Songbird Dulcimers
Musical Instruments - Wholesale &
Manufacturers
Tan World of Muscatine
Tanning Salons
NEWTON
Brightening Lives Home Care
Home Health Services
Todd Heaberlin Enterprises
Electricians
NICHOLS
Chown Appliance
Appliances - Major - Dealers
NORTH LIBERTY
Affordable Quality Plumbing
Plumbing Contractors
DW Brown Websites
Web Design
ORANGE CITY
Alumilene
Truck accessories
POLK CITY
Clean Air Systems
Ventilating Systems - Cleaning
SIOUX CITY
4 Social Media Consulting
Internet Marketing Services
RE/MAX OF SIOUXLAND
Real Estate Services
SPILLVILLE
Silver Creek Floors
Floors - Hardwood
TAMA
J & V Napa Auto Parts
Auto Parts & Supplies - New
TIFFIN
Empire Construction
Contractors - General
TOLEDO
Thys Chevrolet Toledo Tama
Auto Dealers - New Cars
VICTOR
Thys Auto & Outdoor Power
Auto Dealers - New Cars
VINTON
R Squared Excavating
Excavating Contractors
WALCOTT
Superior Metals Services
Metal Specialties
WALFORD
Kenway Sewer Service
Sewer Contractors
WATERLOO
Golden Star Injection Foam
Insulation
Insulation Contractor - Spray Foam
WAUKON
Clark Tire Center
Tire Dealers
WEST LIBERTY
Carol L Moreno DDS
Dentists
West Liberty Tire
Auto Repair & Service
Happy Anniversary: The following businesses recently renewed as Accredited Businesses of the BBB.
25 - 49 Years
Aluminum Seamless Gutter Service
Anderson Erickson Dairy
Barton Solvents
Denny’s Muffler Center
Easter Seal Society of Iowa
Griggs Music
Merchants Distribution Service
Professional Muffler
R Jones BODYPROS Collision Repair
Russell’s Trophies & Engraving
Sullivan & Ward
Winkler Roofing
10 – 24 Years
Adam’s Funeral Home
Anderson Heating & Cooling
Ankeny Auto Body
Arnold’s Body Shop
Bakeris Roofing & Construction
Beaverdale Gutter
Courtyard by Marriott
Earl Miller Construction
Exira Plumbing Heating and Electrical
Food With Flair
Forrest Financial Services
Gold Dome Buildings
Gremler Financial Group
Hawkeye Auto Body
Heartland Animal Hospital
Iowa Bath Systems
Thank you!
K L J B-TV FOX 18
Kaplan Higher Education
Kimberly Development
Loktronics
Midwest Reconstruction
Myo-Tech Denture Center
Nipp’s Machine Shop
Novelty Machine & Supply
Nu Trend Accessibility Systems
Pierce Furniture
Professional Carpet & Upholstery
Cleaning
Proshield Fire Protection
Raymond James & Associates
Silent Rivers
(10 – 24 Years Continued)
Stephen R Grubb Construction
Todd’s Mudjacking Service
Top Line Transmissions
Waste Management of Iowa
5 – 9 Years
A-1 Tree Service
Adio Chiropractic Clinic
Adrian Fiberglass Repair & Refinishing
Advantage Homes
Ames Auto Body
B2E Direct Marketing
Banowetz Floor Covering
Beyond Bath
Big Dog Construction
Brittain & Son Concrete Construction
Commonwealth Electric Company
Comprehensive Rehab
Consumer Safety Technology
Cy-Ment Construction
Dean Driscoll Construction
Dependable Electric
Dickerson Mechanical
Dubuque Equipment
Ever-Green Landscape Nursery & Supply
Field Brothers Moving
H & H Plumbing
Hammond-Wetmore Drilling
Harrison Truck Centers
Hawkeye Life Insurance Group
Hudson Mallaney Shindler & Anderson
Iowa PC Services
Iowa Storage Trailer
Juls Design
Kelly Construction of Davenport
LDJ Manufacturing
MaidPro
Mediacom Communications
Norm Rozendaal Tiling
Norwalk Collision Center
Pro Construction
Professionals Choice Dental Lab
R Prescott & Sons Plbg & Htg & AC
Quantum Construction
Rhoades Photography
RUD-CHAIN
Schwab Construction & Home Services
Seamless Exterior
Seamless Pros
Showplace Kitchens
Siegel’s Jewelry & Loan
Silverwings Productions
Snyder Construction
SRM Enterprises
Suite Dreams
Terradyne Lawn Service
The Dental Practice
Tim Simmons Enterprises
TVC Improvements
Two Rivers Insurance Services
Worthington Insurance & Real Estate
Wright Companies
1 – 4 Years
AAA Lawn Care
A King’s Throne
Ace of Spades Jack of All Trades
Acheson Auto Body West
Advance Construction
Advanced Heating & Air Conditioning
Affordable Towing
All Iowa Construction Services
American Fence & Pool
Americauto Financing
Aric Jay Eckhardt MD SC
Babe’s Termite & Pest Control
Bankers Leasing Company
Bascom Truck and Auto
Better Basement Technologies
Bossen Implement
Bovard Studio
Boyd Accounting Service
Buckshot Exteriors
Burdorf Parrott and Associates
C & D Construction
C V Insulation
C’s Landscape and Design
Capital Lawn Care and Landscaping
Carpet Pro Cleaning & Restoration
Celebrity Heating & AC
Central Iowa Pool & Spa
Champion Window Company
Chiropractic Physiotherapy Clinic
Choice Plumbing Heating & AC
Chris Schlabach Construction
Cirks Financial Services
Classic Concrete Raising
Classon Accounting
Cone’s Repair Service
Corridor Coffee Company
Cross Iron Excavating
Crown Interiors
CSI Chemical
Culligan Water Conditioning
Curt’s Collision Center
Custom Electrical Services
Custom Made Boxes
Custom Seamless Guttering
Cylosoft
D & M Construction
Dakota Country Kennels
Delden Garage Doors
Dental Associates
Des Moines Heating & Cooling
Family Eyecare of Winterset
Family Management Credit Counselors
Family Tree Care
Fessler Carbonic Gas
First Kiss Videography
Fisher Body & Paint
Flushed Away Plumbing
Fort Dodge Pool & Spa Supply
Frontier Construction
Frozen Beverages of Iowa
Gannon Roofing Supply
Garrison Auction Service
Golden Hammer Collision Center
Granite Transformations
GRP & Associates
Halbrook Electric
Halfhill Insurance Services
Hall Enterprises
Hemann Martial Arts & Fitness
Hicklin Overhead Door
Home Bound Healthcare
Infinity Financial Group
Inside N Out Construction
Iowa Falls Roofing
Iowa Heartland Credit Union
Iowa Roofing
Iowa Sound
Iowa State Home Inspections
Jed’s Construction
Jeff’s Lawn Care
Jim’s Camper Service
John Evers Agency
Joseph L Bates DDS
Kirby Water Conditioning
L K Gasper Health Insurance
LADCO
Lawn Doctor of Ankeny-AltoonaMarshalltown
Leather & Hawgs
Lorey Company
Lucks Construction
Lucky Express
Luethje Tiling
M D Holmes Trucking
M T’s Backhoeing
Marick Refrigeration
Mauro Insurance Agency
Mike Moreno Remodeling
Millang Financial Group
Mobile Super Service
Montgomery St John Insurance Agency
Mount Wrecker Service
NCMIC Finance
NCMIC Group
NCMIC Insurance Co
NCMIC Insurance Services
Newton Manufacturing
North Iowa Plumbing Heating and
Electric
Northland Foundations
Passport Health of Moline
PJF CO
Premier Automotive Service Center
Premier Media Solutions
Prevailing Resources
Professional Solutions Insurance
Professional Solutions Insurance Services
Puroclean Disaster Restoration Services
QC General
Raincap Industries
Relay Staffing Solutions
Results by Kim
Retirement Solutions Group
Russell’s Guides
RWD
Schlenker Construction
Schroeder Memorial Chapel
Schwenke Pharmacy
Seelah Kennel & Training Center
Senior Helpers
Sincerely Yours Interiors
Skyline Exhibits Central Iowa
Snyder Plumbing
Sorenson Studios
Spilman Auto Parts
Spirit Lake Distributing
Spring Valley Roofing & Construction
Spruce Hill Tree Service
Stille Pierce & Pertzborn
Tailz ‘Er Waggin’ Barkery
The Carpet Store
The Label Advantage
The Masters Group
TNT Contracting & Renovations
Tobin Custom Builders
Tom’s Auto Sales
Triton Plumbing Service
(1 – 4 Years Continued)
Truly Nails
Twin River Logistics
Ultimate Tax Service
Vanguard Appraisals
Venture Homes
VH MFG
VOIP Care
W C Hansen Hardware
Wayne Dalton of Central Iowa
Western Hills Estates
Wirth Concrete Construction
The staff of the BBB volunteered at Meals for the Heartland on September 2, 2011 in Des Moines.