Your business credit score is important to your financial growth. It’s similar to a FICO score, but there are differences. Maintaining a good business credit score can help your business get better financing terms. Here are some things you should know about business credit to make sure you’re working toward having a good score.
What Is a Good Business Credit Rating?
The three major business credit bureaus, Dun & Bradstreet, Experian and Equifax, may each give you a different score, because there isn’t an industry standard, but typically, a good business credit score will be from 90 to 100. Creditors look at your business score to determine how likely your business will pay its debts.
Typically, your business credit ranking is based on accounts in your business’ name, not your personal accounts. Unfortunately, to see your business credit report, you generally have to pay a fee. But it’s worth paying the fee at least once a year to ensure that the information is accurate.
Benefits of a Good Business Credit Report
Although many lenders will provide financing based on your personal credit, having business credit can be beneficial:
- Boosts your borrowing power
- Might lower your business insurance rates
- Separates your personal and business finances
Consider Checking Your Credit Score
Although the three credit bureaus collect and verify information differently, they look at the same type of information that goes on your FICO report. Paying your bills on time is the key to having a good business credit score, but you also need to have your creditors report the information to the bureaus.
You should check your business credit report annually for inaccurate information. You may find mistakes that could be hurting your credit. But mistakes can be fixed when you provide evidence that the information is inaccurate. Fixing errors each year will save you headaches and time, because you’ll be more likely to find the documentation you need.
Contact GrowthCC for lending options that will give you working capital and help you improve your business credit score.
