Businesses always find it highly desirable to achieve and maintain a strong credit score. A high score shows lenders and other firms that your company is financially stable. A strong credit profile will enable you to obtain financing at favorable rates should your business require it.
Business Credit Scores in a Nutshell
A credit score for businesses is a measure that provides a benchmark of the creditworthiness and overall financial strength of a business. In most cases, data from a business’s credit report is used to calculate a company’s credit score. This data can include information about the company, such as its number of employees, historical data, payment history, account information, owed amounts, and more. A business credit score can be looked up using credit reporting agencies such as Dun & Bradstreet, Equifax, and Experian.
Building Up your Business Credit Score
There are a number of ways that a business can improve its credit score. If you are looking to strengthen your business’s credit score, consider the following five points and determine if you can make any changes in your operations:
- Register your business and apply for an EIN (employer identification number) if you have not yet done so.
- Establish and utilize a business credit card regularly and responsibly.
- Monitor your business’s credit score.
- Pay back credit installments on time or early.
- Refrain from continuously maxing out your business’s credit limit.
Speed Funding Can Help
Some lenders tolerate lower credit scores when businesses need financing. Traditional banks in particular often demand stellar scores. If your business needs credit and has been denied financing elsewhere, seek out alternative funding sources.
Speed Funding is a lending agency that works with all types of businesses. They have a wide variety of financing options. Reach out to them and see what your business financing options are.