Credit scores are not just important for individuals, but they also play a crucial role in the financial health of businesses. Business credit scores are used by lenders to assess a company’s creditworthiness when applying for credit products such as business loans and small business credit cards. Understanding your business credit score and accessing your business credit report is essential for small business owners looking to secure credit for their company.
A business credit report is a compilation of your business’s credit history, similar to a personal credit report. Lenders use the information in your business credit report to determine how likely you are to repay credit extended to you. The report typically includes details such as the number of employees, sales, ownership structure, industry classification, payment history, and public filings like liens and judgments. The information in your business credit report can impact factors such as interest rates, repayment terms, insurance premiums, and credit extended by banks and suppliers.
Business credit scores are calculated using different scoring models than personal credit scores. Two common business credit scoring models are Dun & Bradstreet PAYDEX Score and Experian Intelliscore Plus. These scores range from 1 to 100, with higher scores indicating better creditworthiness. Factors such as payment history, age of accounts, and amount of debt are considered in calculating a business credit score. Maintaining a positive payment history and managing debt responsibly can help improve your business credit score over time.
Checking your business credit score can be a bit more challenging than checking your personal credit score. While there are some free resources available to get a general idea of your business credit score trends, accessing your full business credit report and credit score usually requires a paid service. For example, Dun & Bradstreet Credit Insights Free provides basic information on your business credit report and credit score trends, but you won’t have access to your full credit report. Bank of America offers free access to Dun & Bradstreet credit scores for eligible small business customers enrolled in their Business Advantage 360 online banking platform.
If you want to see your full business credit report and credit score, you may need to opt for a paid service. Dun & Bradstreet offers various paid plans starting at $49 per month, which allow you to view your credit scores, credit history, and receive alerts. Experian also offers paid options for viewing your business credit report, with one-time reports costing between $39.95 and $49.95, and annual subscriptions ranging from $189 to $1,495 per year.
In conclusion, understanding your business credit score and accessing your business credit report is crucial for small business owners looking to secure credit for their company. While there are some free resources available to get a general idea of your business credit score trends, accessing your full credit report usually requires a paid service. Monitoring your business credit score and managing your credit responsibly can help improve your business’s financial standing and increase your chances of securing credit in the future.
