Your business credit score acts much like your personal credit score, but it’s related to your business instead of personal finances. Although business credit scores aren’t standardized between the business credit bureaus, you can still maintain your credit report and improve your score through the same types of activities.
Pay your bills on time or early.
Although each bureau collects data in a different way, each bureau is checking to see how you pay your bills. Any accounts in your business name need to be paid on time. Dun & Bradstreet, for example, scores you based on the likelihood that your business will make a delinquent payment.
Check your business credit reports.
Credit bureaus generally rely on third-party verification, which means that they don’t always have accurate data. At least once a year, you should check your credit report to ensure the accuracy. You want to make sure that the bureau has your credit correct, but also things like your company size and details correct.
Borrow from lenders that report to the credit bureaus.
You may have good credit with local vendors, but if the credit bureaus are unaware then it doesn’t help your business credit score. Your bank probably reports to the credit bureaus, but if you’re using alternative financing, check to make sure you’re getting credit for making payments.
Keep your public record clean.
Judgments, liens and bankruptcies will hurt your business credit report. And they will stay with you for a long time, up to 10 years for a bankruptcy. Try to avoid having public records against your business.
Having good business credit will help you get better terms and conditions on traditional loans and with your creditors.
Contact Span Capital for financing options that will help your business grow. We report to the credit bureaus, which can help you qualify for more financing as you show that you pay your bills and are a good credit risk.