Like consumer credit scores, business credit scores fall within a certain range, and the higher the score, the lower the perceived risk. While consumer credit scores generally range from 300 to 850, a business credit score might range from 0 to the 1000s, depending on the company providing the business credit score. The four major business credit bureaus are (1) Dun & Bradstreet; (2) Equifax; (3) Experian; and (4) FICO.
How do I start building a credit score for my business?
If your company is just starting, some of the credit bureaus (like Equifax and Experian) will not generate a business credit score for you until they are able to gather sufficient information about your company’s different milestones.
These milestones include payment history to creditors, opening of business bank accounts in your company’s name, obtaining a federal Employer Identification Number (FEIN), and obtaining a listed telephone number in your company’s name.
As for Dun & Bradstreet, you can proactively ask them to start compiling your company’s credit score by applying for a free identification number known as a “D-U-N-S Number.”
What factors are considered by the business credit scoring models?
The most important factor is your company’s payment history with business credit cards, loans, vendor accounts and other tradelines.
However, the following types of information can also impact your business credit score:
-Whether your company’s number of reviews is trending up or down
-Responsiveness to customer reviews
-Number of employees
How do I access my business credit report?
Unlike with consumer credit reports, you are not entitled by law to free access to your business credit reports. However, companies such as Nav offer free trials to let you access your business credit report, or you can contact the business credit bureaus directly to pay to see your credit status.
If your business credit score held you back from being approved for a loan, we specialize in getting businesses approved by alternative lenders. Click here to learn more.