Phronesis Group Consulting Business Credit Assistance Program
How To Improve Your Business Credit Score
Your business credit score is more than a number. In fact, it can play a large role in the success of your business. A business's credit score helps lenders, suppliers, and other creditors quickly evaluate whether the business will pay its bills on time. Check your business credit report regularly and verify that the information is accurate and up-to-date. Establish business credit with companies that report trades. Remember, not all business creditors report their trade information.
Pay your creditors on time. Historical payment behavior with previous creditors plays a major role in determining your business credit score.
How Business Credit Scores are Calculated
Business credit scores range from 0 to 100, with 0 representing a high risk and 100 representing a low risk. Scores are based on a number of factors contained in your business credit file.
Number of trade experiences
Outstanding balances
Payment habits
Credit utilization
Trends over time
Public record recency, frequency and dollar amount
Demographics such as years on file, Standard Industrial Classification codes and business size.
There are several steps you can take to begin building business credit:
Incorporate or form an LLC (Limited Liability Company) to ensure your company is seen as a separate business entity
Obtain a federal Employer Identification Number
Open business bank accounts in your legal business name
Set up a dedicated business phone line in your business name and make sure it's listed