Intelagy is committed to empowering U.S. small business owners in the successful growth and sustainability of their businesses. In addition to quickly providing much needed working capital to businesses, another integral part of this commitment to success is giving small business owners the tools and information that they need to make solid business decisions. Understanding what good business credit is and how to establish and maintain it is a very important ingredient in the recipe for long-term prosperity
A good business credit score can mean the difference in financial success and failure for your small business. A recent study by Manta showed that 72% of small business owners have no idea what their business credit score is and 60% don’t know where to find it. In order for small business owners to fuel their growth, it is important that they are educated on business credit.
What is a business credit score?
A business credit score is a rating of your business’ ability to repay your debts. While it is common for many small business owners to use their personal credit when their businesses are in the startup phase, it is very important to establish credit in your business’ name as soon as possible. A good business credit score can help determine whether or not you will receive financing when your business needs it or even whether or not a supplier will extend a line of credit for materials and supplies.
What is the difference in a business credit score and a personal credit score?
While there are similarities between business credit scores and personal credit scores, they are two very different things. Your business credit score reflects specific information about your company’s debt repayment, public records, as well as, information pertaining to company owners and officers. Unlike your personal credit score, your business credit score can be viewed by anyone, including potential clients and vendors.
What is a good business credit score?
Business credit has a scoring range of 0-100. A good business credit score falls at 75 and above. The factors that go into scoring business credit are payment history, number of employees, monthly and annual revenue flow, and the industry that your small business is in.
What if my business credit score isn’t very good?
Similar to the most important step in improving your personal credit score, your business credit score can be improved by consistently paying your bills on time. Staying aware of any changes in your business credit score is also very important. You can do this by monitoring your credit score on a regular basis and setting up alerts. Maintaining a clean public record and receiving funding from companies, such as Intelagy, that report to credit bureaus are also excellent ways to improve your business credit score.
For more information on how Intelagy can help your small business, please visit www.Intelagy.com