How to Check Your Business Credit Score?

As a small business owner, it’s important to familiarize yourself with your company’s credit score and know how to find it. You should also be aware of factors that may affect it. Make a point of continually monitoring your business credit score for potential changes or mistakes.

How do I find and check my business credit score?

You can find your business credit score by checking one of the three main business credit bureaus.

Dun & Bradstreet

Dun & Bradstreet offers a free option which allows you to view four scores and ratings for 14 days. They also offer several paid options starting at $15/month for checking your business credit, building your credit, and checking others’ business credit to help you determine the risk factors of working with a potential business partner.

Experian Business

Experian offers several options for a single report or multiple report plans. According to their website, “The available options provide varying levels of detail – from presenting the basic facts of a business to detailed business credit, payment, and public record histories – in an easy-to-read format.” A single report starts at $39.95, or for $189/year you can get ongoing access to your business’s full credit report and score.

Equifax Business

With Equifax you can order a single business credit report for $99.95 or purchase a multi-pack (which equates to 5 for the price of 4) for $399.95. You’ll get a full report with credit score, risk scores, failure scores, and public records.

What is a business credit score?

Your business credit score is similar to your personal credit score in that it represents your business’s credibility as a borrower. Once you start your business, obtain an EIN number, and create a bank account for your company, business credit bureaus will start gathering information about your company by looking at public records. Your business credit score is connected to your company’s EIN number. It takes time to build up, so if you’re just starting out, check out these tips for climbing the ladder of credit.

What factors affect my business credit score?

Several factors determine your business credit score such as time in business, assets, industry type, size of the company, public records, outstanding debt, and payment history.

• Time in business: A longer business history typically results in a higher credit score, as it demonstrates stability and reliability.
• Assets: The value of your business’s assets can impact your credit score. Lenders may view businesses with substantial assets as lower risk, which can positively influence your score.
• Industry type: Some industries are considered riskier than others, which can affect your business credit score. High-risk industries may face challenges in obtaining favorable credit terms.
• Size of the company: Larger companies with more extensive operations often have better credit scores, as they tend to have more established credit histories and a higher likelihood of meeting their financial obligations.
• Public records: Bankruptcies, tax liens, and judgments can negatively impact your business credit score. Addressing and resolving any public record issues is crucial for improving your score.
• Outstanding debt: High levels of debt, especially relative to your company’s revenue, can lower your business credit score. Aim to maintain a manageable debt load to positively influence your credit rating.
• Payment history: Timely payments to suppliers, vendors, and creditors are crucial for maintaining a good business credit score. Late or missed payments can significantly damage your credit standing.

Why is having a good business credit score important?

A good credit score will help you get better terms with new vendors or suppliers, lower interest rates on loans, lower terms on credit cards, and better insurance premiums. It also demonstrates your financial stability and creditworthiness to prospective business partners or suppliers before they enter into a working relationship with your company.

Why is it important to monitor my business credit score?

You should always stay on top of your business credit score because it can be an indicator of business identity theft or fraudulent activity. Sometimes there are mistakes in credit reports, such as outdated information, or discrepancies that should be addressed. Monitoring your credit score will also give you an insight into areas where you can improve like paying down an outstanding balance on a credit card.

Need help establishing credit?

SBG Funding offers small business term loans or business lines of credit to help you establish and improve your business credit.

FAQ about checking your credit score

How does a strong business credit score impact growth opportunities?

A strong business credit score can lead to securing financing with favorable terms, negotiating better payment terms with suppliers, building trust with potential business partners, attracting investors, and facilitating expansion.

Can a good business credit score help me secure better terms with suppliers?

Yes, a good business credit score demonstrates your reliability as a buyer, allowing you to negotiate favorable payment terms, such as extended payment deadlines or discounts for early payments, with suppliers.

How can I improve my business credit score?

To improve your business credit score, you should establish a business credit profile, pay bills on time, manage credit utilization, monitor credit reports, establish trade lines, and maintain a healthy financial position.