Your business credit score is more than a number. It is the first thing a lenders see when the look at your business report. In fact, it can play a large role in the success of your business.
A business's credit score helps lenders, suppliers, and other creditors quickly evaluate whether the business will pay its bills on time or not.
But understanding how your scores are generated is half the battle. But one you do knowing how to improve them is the other half.
Here's how you can do it.
Check your business credit report regularly and verify that the information is accurate and up-to-date.
Establish business credit with companies that report trades. Remember, not all business creditors report their trade information.
Pay your creditors on time. Historical payment behavior with previous creditors plays a major role in determining your business credit score.
Experian & Equifax requires at least one tradeline to generate a score. Dun & Bradstreet requires 4 tradelines to generate a PAYDEX score. If a business doesn't meet these requirements, a score is not generated.
Now remember, there is no guaranteed way to improve a business credit score, but there are a few steps you can take to ensure that your business credit report reflects the best possible score for your situation.
If you need to check your business reports I recommend NAV.