Having a strong “business credit profile” is a great way to not only attract new business but also increase brand awareness. A company’s business credit report can be reviewed by the whole world. This includes potential business partners, vendors, customers, suppliers, etc. Vastly different than a personal credit profile, a business credit report profile can be accessed by anyone without consent.
Are you operating your business on your personal credit? This is ultimately considered the death of any business. If you seriously want to grow your company or brand you will need business credit!
Most entrepreneurs don’t even know that there are actually seven key factors that determines a business credit score. These seven factors reveal what “ability” the business will likely have to pay back creditors.
Simply put every business or brand needs these seven things to establish their business credit score worthiness.
First off, every business should have a credit score. The range of business credit scores are from 0 to 100. The lower the number the more of a higher credit risk a business is considered.
Business Credit Score
These are the main seven key factors to base what kind of credit risk a business will be. This is how a “business credit score” is calculated from these seven factors.
The number of trade experiences a business engages.
The amount of outstanding balances for the business.
The payment habits of the business.
The business credit utilization of available credit.
Business credit trends over time.
6. Public Records
What appears in public records about a business.
History of business credit profile and demographics.