Your business credit score is a reflection of your company’s financial health and creditworthiness. It affects your ability to secure loans, negotiate terms with suppliers, and attract investors. Building and maintaining a strong score should be a priority from day one.
Credit scores are typically tracked by agencies like Dun & Bradstreet, Equifax, and Experian. Unlike personal credit, business credit scores usually range from 0 to 100.
Key factors influencing your score:
- Payment history – Do you pay vendors and creditors on time?
- Credit utilization – How much of your available credit are you using?
- Company size and longevity – Older, more established businesses tend to have higher scores
- Public records – Bankruptcies, liens, or judgments will hurt your rating
Tips to build a strong business credit score:
- Incorporate your business (LLC or corporation)
- Open a business bank account and credit card
- Establish trade lines with suppliers
- Pay bills early or on time
- Monitor your score regularly and correct errors
Strong business credit opens doors. It can help you secure funding at better interest rates, expand faster, and build trust with partners. Think of it as your company’s financial reputation.
Leave a Reply