A strong business credit report can help build your business. Having a good credit score can increase your borrowing power and keeping track of what is on your business credit report can help you avoid fraud and fix errors.
A business credit report is a document packed with information about the structure, industry, owner(s), and financial performance about your company. A business credit score is a numerical assessment of your business’s creditworthiness and how your company has handled money.
Lenders, suppliers, customers, and other businesses can check your business credit report and use the information on it to make decisions about whether to do business with or lend to your company. Experian Business, Equifax Business, and Dun & Bradstreet are the three main business credit bureaus. they gather information, create business credit reports, and use scores to assess a company’s risk profile.
Do not miss these steps when you check your business credit report.
The following factors are used to calculate business credit score:
A credit score is not the only factor that is considered by lenders, but it is important. A strong credit history can help you secure more loans or arrange more favorable payment terms and rates. It might be the tool you need to establish a relationship with your partner or new supplier.
Unless you are at 750 or higher, your credit score probably has room for improvement. While there is no way to improve your credit score overnight, it is not that difficult to do over a period of time. As long as you pay your bills on time, pay down your debts aggressively, and avoid opening new lines of credit, you should be on track toward improving your score as well as your overall financial future.