Is it possible to rebuild business credit?

[plumbingwife]

Two unfulfilled yellow pages contracts; one from 2009, one from 2010. Probably total 20k. Is it possible to repair?

[BRBiz]

Who are they reporting to?

[plumbingwife]

D AND B at least. Brother's business. He's had a positive Home Depot account for 6 years. They've reduced his line from 4k to 1k due to the D and B. He has a couple other regional accounts. I don't know if they report.

[BRBiz]

Well DNB is suppose to report payment history for two years but you often see the same negative items reappear after coming off and stay on for years. The main problem is I'm sure a collection company has it at this point and they will most likely report to all three. Because the business credit is totally different then personal it's very hard to get things removed from reports even when they really don't belong to your business.

 

So to really answer your question you really can't repair just let it age off and add as many good trades as possible to offset the bad one.

[plumbingwife]

Thanks for the answer. I asked him when the last time he heard from a creditor was and he said maybe 2011.

[BRBiz]

Honestly some times items will just disappear for the most part meaning a collection company just gave up or the orginal creditor just charged it off. Recovery for bad business debt is very very low.

[alplouis]

Unless if they sue you in court.

[BRBiz]

Unless if they sue you in court.

True but you really don't see any where near the number you do on the personal side.. With a business you just close up and your gone.. Often if they win there is nothing to collect from. If it was a large debt then you may see them coming after you personally.

[alplouis]

That's true too. This why I advise folks to stay away from PG ing. Small businesses fail everyday.