What is my Business Credit ScoreWhich is my Business Credit Score?
An enterprise credit assessment is usually a number between 0 and 1001. However, the higher the score, the more secure it should be to grant credit to the company. Credit reports typically provide a snapshot of a company using a variety of different tools, including1: However, each credit bureau uses a slightly different criterion, relying on its own proprietary, uniquely designed credit score calculation algorithm.
In this way each of the agencies can give you a different score. The creditworthiness of your company is so important that it is rewarding to check it from and to. Equifax and Experian are the largest credit bureaus and are most frequently used by creditors, but there are others: Timely payment of invoices alone does not lead to good creditworthiness, as many influencing variables can have a detrimental impact2, such as
When your company has not had enough opportunity to create its own credit score, your own credit score will be scrutinized - so be extra cautious to achieve a sound result. Most likely individuals to have credit checks done are: How can a bad score affect your business?
They are considered a higher level of exposure for banks and creditors because it is more difficult to judge how reliably your business is repaying payments. Therefore, it is important to increase the creditworthiness of your business.