By: LendVer Staff –
A business credit score is a numerical representation of your company’s creditworthiness. It helps lenders, suppliers, and other stakeholders evaluate the risk of doing business with your company. Scores typically range from 0 to 100, with higher scores indicating better creditworthiness. These scores are crucial when applying for business loans, securing favorable payment terms, or negotiating contracts.
Key Agencies That Track Business Credit Scores
Several agencies provide business credit scores, but one of the most prominent is Dun & Bradstreet (D&B). Their proprietary score evaluates your company’s payment performance and credit history. Other major agencies include Experian and Equifax, which also generate business credit reports.
How to Find Out Your Business Credit Score
- Register with Dun & Bradstreet: Start by obtaining a D-U-N-S Number, a unique identifier for your business. This is free and necessary to access your D&B business credit report.
- Check Online: Once registered, visit Dun & Bradstreet’s website to request your credit report. While basic information may be free, detailed reports typically come with a fee.
- Other Credit Bureaus: You can also check business credit reports through Experian and Equifax by creating accounts on their platforms.
- Monitor Regularly: Many agencies offer subscription-based services to keep track of changes to your business credit score.
What Your Business Credit Score Means
- 80-100 (Excellent): Indicates timely or early payments.
- 50-79 (Good): Suggests payments are generally on time.
- 0-49 (Poor): Signals late payments and higher risk.
Why Your Business Credit Score Matters
Your business credit score impacts loan approvals, interest rates, and vendor terms. A strong score can lead to better financing options and lower borrowing costs. Regularly monitoring and improving your score helps maintain your company’s financial health and reputation.