Business Credit Score – How do I build it?

A high credit score is the key to your business getting approved for business credit and financing. All companies have credit score reports. Just as your personal scores serve as financial classifications, your business score also identifies the credit limit that your business can acquire.

Several factors reflect in the calculation of these numbers, which can vary from 0 to 100, where scores of +75 indicate excellent credit. Credit scores are calculated by data agencies like Dun & Bradstreet, Experian and Equifax.

Factors that determine business credit:

The business credit scores are calculated from various points about your company and the financial history. Here are some of the variables:

• Rate of credit usage
• Payment History
• Age of credit history  
• Outstanding debts
• Public records: bankruptcies, liens and judgments
• Company size
• Industry Risk

Main companies that control commercial credit and generate scorecard reports:

1. Dun & Bradstreet PAYDEX:

PAYDEX is a unique indicator of a company’s payment performance based on the payment history recorded within your profile with Dun & Bradstreet. This rating can range from 1 to 100, with the highest scores indicating the best performance.

• Intelliscore PlusSM from Experian:

According to Experian, Intelliscore Plus® is a statistical-based credit risk score that can combine business and homeowner credit data to predict the likelihood of serious delinquency in the next 12 months. Scores range from 1 to 100, where lower numbers indicate higher risk.

1. Equifax Business Credit:

As many of you know Equifax also operates a consumer credit reporting agency, and is able to produce credit scores that include information on the owner’s personal credit together with business credit data on the report. Equifax is among the leading Credit Companies, used for the  approval of both business and personal loans.

As a business owner, you should regularly review your financial information, including credit reports. Undoubtedly, understanding how and when commercial credit scores are good or not can be complex. Keeping this in mind and striving to know the needs of our clients, we at Dominium Consulting have developed a very simple method for you to build and maintain your credit.

Visit our page on building business credit and do not hesitate to contact us with any questions or doubts you may have.

Credit Department
Dominium Consulting