They also differ in terms of the methodology used to calculate your score. Factors that help determine business credit scoresĮvery business credit report is unique given the differences in how and where reporting agencies collect information. Since many small businesses have a limited credit history, including the owners’ credit information helps paint a broader picture of their risk factor for lenders. The Small Business Administration uses FICO SBSS scores to evaluate a business’s creditworthiness. FICO calculates your business credit score by considering your personal credit history as well as that of your company.
#CHECK MY BUSINESS CREDIT SCORE PLUS#
Intelliscore Plus from Experian Score RangeįICO SBSS scores are different from PAYDEX and Intelliscore Plus credit score calculations. Scores closer to 50 indicate that you often pay invoices 30 days late.Ī score in the 40s or lower suggests you have a record of paying invoices 60 days beyond terms (or longer). Any scores in between are a mix of both.Ī score in the 70s suggests that you are paying invoices two weeks late, on average. A score of 80 denotes that you make on-time payments. Each has its own credit range and uses unique calculations in order to determine their scores.Ī 100 score denotes that most or all payments you make come 30 days sooner than the invoice terms. There are three major bureaus that track and report on business credit. Businesses that have a spotty repayment history can expect a low score. (FICO SBSS Business Credit Scores are on a scale of 1-300.) A score of 80 or higher for Dun & Bradstreet’s PAYDEX or Experian’s Intelliscore Plus generally means your business is considered to be low-risk for lenders and that the company has little to no history of late payments or loan defaults. What is a “good” business credit score?Ī good business credit score is typically on the high end of the 1-100 range for two of the three major reporting bureaus. Just like with your personal credit score, lenders are more likely to approve business borrowers with a credit score in a certain range depending on their appetite risk. That’s different from personal credit scores, which are calculated on a 1-850 scale. Business credit scores tend to range from 1-100, with 100 being the best score possible. Personal and business credit scores vary, however. In general, business credit scores, along with financial statements such as tax returns, show whether a company is a good candidate to receive a loan or to become a supplier’s customer with a trade credit account. Both are calculated by credit bureaus to rank a business’ or individual’s financial health. Your business credit score functions similarly, except it accounts for your company’s borrowing track record. Your personal credit score tracks your personal relationship with credit by way of your loans, credit cards and the payments you’ve made on both. Here's a comprehensive guide to understanding business credit scores.
#CHECK MY BUSINESS CREDIT SCORE HOW TO#
If you’re in need of business lending, it’s critical to understand how business credit scores work, what they factor in, the agencies that calculate scores and how to check your business’ credit score. This is different from your personal credit score, which evaluates your own borrowing and repayment history (even though business lenders may look at both, especially for guarantors, who promise to be held individually responsible for repaying business debt). Your business credit score serves a major purpose for lenders: along with financial statements, it provides a quick way to look at your company’s relationship with borrowing in the past. What you may not realize, however, is that your business has a credit score, too. And as the business expands, some of these funds can be paid back in the future. It’s common for businesses - especially small businesses - to seek new funding opportunities to reach business goals.
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