A strong business credit profile helps your business get financing and attract new clients. It’s about your financial strength and credibility. Business scores range from 0 to 100, with 100 being the best. Although business credit scores are calculated differently at each credit bureau, you can do your part in making sure your credit score remains high. Here are five steps you can take to build a business credit score:
• Keep your business information correct with the three credit bureaus that create business scores, Dun & Bradstreet, Experian and Equifax
Make sure your business profile is correct with the bureau. Monitor your score just as you would with your personal credit information. Check each one at least once a year.
• Ask suppliers to report to the credit bureaus
Ask for an extended trade credit line and make payments on time. Dun & Bradstreet will require three trade lines to get a score, but you can really boost your score when your business upholds its end of the agreement.
• Make payments to your creditors on-time
Even better, pay off accounts early for the best scores. You can’t get a perfect score without paying off accounts early.
• Borrow from lenders that will report to the business credit bureaus
Although most banks and credit unions will report to the credit bureaus, not all alternative lenders do. Make the most of your lending by making sure your payments will be reported.
• Keep public records off your business credit report
Bankruptcies, judgments and liens will show up on your business report and be counted as negative marks lowering your business credit score.
Bear River Financial offers financing for your business to help you stay on top of your industry and to build your business credit. Contact us for more information. Even if you don’t have credit with your business, we can help.