• Types of business loans
  • How to Find and Qualify for a small business loan

Small Business Credit Scores

What is a small business credit score

There are 2 types of credit scores for business. The first type of credit score is your personal credit score. Even though this is not directly to your business it does indicate how you manage your personal finances and your credit worthiness as an individual. The next is the business credit score rank this is the same as your personal one but more attribute about your business and how your business managers it’s credit. There are a few agencies in terms of credit score which are. Don and Bradstreet, Experience and Equifax all these bureau produce business credit scores and report.

Almost all lenders use these credit scores to some degree to workout your creditworthiness as they will use it as a measure of risk. As a business it is important that you know and you manage both your personal and your business credit score. This information is available to you.

Factors that determine business credit scores

There are many factors that affect your business credit score for example Experian measures over 140 variables to determine your score. Some of these factors are as follows

  • Any public records on the business profile Such as collection liens judgments and bankruptcy
  • The status, recency, frequency and dollar amounts of any applicable liens, judgments or bankruptcies
  • An increased trend in slow payment of obligations
  • An increase in the number of business credit inquiries or applications that are generated by the business or the owner
  • The number of trade experiences, balances outstanding, payment habits, credit utilization and trends over time
  • Years in business, line of business or Standard Industrial Classification (SIC) code, size of business and other demographic data

How business credit scores are used

The importance of checking your business credit score

How can I get a free business credit report and score?

How can I improve my business credit score?

Check your credit report You can obtain your credit report from many Bureau such as Equifax and Experian. These reports are not free Even if you are the owner of the company. But this is a critical step As you must understand what is being reported about you And understand how and what your credit score is. Getting your credit report is going through and valuating The credit report. Ensure that all the information is correct ensure that there is no errors all miss information in your reporting. If you have found errors In your credit report You may contact The Bureau To get it fixed. Sometimes That might be Small amount owing Which you may be able to quickly resolve With the appropriate parties. Business credit reports Small business credit types of scores The D&B PAYDEX Score Explained The FICO SBSS Credit Score Experian Intelliscore Plus℠ Equifax Business Credit Reports Quicklinecredit PayNet Your Small business credit Annual credit reports Small business credit check Small business monitoring