Whether you’re trying to get up and running or looking to fund a growth plan, your business credit score plays an important role in your company’s overall financial health. But do you know yours?
In this guide, we’re exploring what a business credit score is, where you can check it, and why it's essential to know and monitor it.
From seasoned entrepreneurs to anyone just starting out, understanding your business credit score is key. Here’s where to start.
A business credit score refers to your company’s creditworthiness based on factors like payment history, credit utilization, and length of credit history. It can impact everything from your ability to secure financing to your suppliers' willingness to extend credit to you.
Following their system, here's a breakdown of what's considered a good, moderate, and bad business credit score:
Other business credit reporting systems may follow different rankings — though generally, the higher the number, the better the score.
Understanding and monitoring your business credit score can help keep your operation in good financial health.
Here are a few benefits of knowing where your business stands:
There are many business credit reporting systems that lenders, suppliers, and other businesses may use to assess a company's creditworthiness. Some well-known options include:
Building business credit doesn’t have to be a challenge. To get started, register your business and get an EIN. From there, you can incorporate these strategies to help establish and build your business credit score:
Don’t stop there: Get more tips on how to build business credit.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.