Building Business Credit, What To Do!

According to Entrepreneur Magazine, less than 10% of all business owners understand how business credit is established. However, if you want to access capital, it’s important to understand your business credit profile.

So, what exactly is a business credit score? Your business credit score is compiled from credit obligation information, legal files, and background information pulled from public offices. Sometimes referred to as “trade credit”, and much like personal credit, it’s a rating that assesses your business’s ability to pay its debts.

Collections information and payment history may also be factored in and key aspects will include the number of lenders you have worked with, the amount they have extended you, and how prompt you are at paying them back.

When you’re applying for a small business loan, many factors will be considered in addition to your business credit score, including your industry, time in business, revenue, and even your personal credit. In addition, lenders like Apple Capital report repayment behavior to credit bureaus, which helps to establish your business credit.

To find out more about your business credit score, check out any of the major business credit bureaus:

  • Dun & Bradstreet
  • Experian Business
  • Equifax Business
  • Business Credit USA
Published On: August 31st, 2022 / Categories: Uncategorised /

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