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Business Credit Scores

Volume 2

In this installment of the Credibly Business Journal, we‘ve teamed

up with Experian to present a complete guide to business credit:

WHY IS

BUSINESS CREDIT

IMPORTANT?

Download the full journal at credibly.com/businesscredit and

learn how managing your business credit score can boost the

borrowing power of your business.

WHAT STEPS CAN

YOU TAKE TO

IMPROVE YOUR

BUSINESS CREDIT

PROFILE?

HOW ARE

BUSINESS CREDIT

SCORES

CALCULATED?

What’s business credit and why is it important?

What’s business credit and why is it important?

“Business credit is an objective snapshot

of your business's ability to manage

payment obligations, and is a key marker

of your business's financial health.”

Having a strong businesscredit score helps youget better terms fromlenders and suppliers.

Building strong business credit reduces risk by ensuring

that your business setbacks don’t negatively affect your

personal credit.

How is business credit determined?

How is business credit determined?

Most business credit scores are

expressed on a scale from 1-100;

the higher the score, the lower

the risk you are for lenders.

Demographic Data

There are over 100 individual factors that could influence

your business credit score, but the primary ones include:

Trade Experiences& Payment Habits

CreditUtilization

Number of creditInquiries

Derogatory Public Records

CLICK HERE TO GET THE ENTIRE JOURNAL FOR FREE!

Business Credit Scores

Volume 2

Q&A with

Tina Chan ReichCredibly’s

Chief Data Scientistand Chief Risk Officer

Meeting your payment obligations

has a direct impact on building up

your business credit score and

borrowing power — as long as your

vendors and business relationships

are reporting your payment activity

back to credit bureaus like

Experian. Not everyone provides

that service for their customers,

but Credibly does. We want to make

sure that business owners are

rewarded for demonstrating

financial responsibility.

How is yourbusiness credit score different from your personal credit score?

How is yourbusiness credit score different from your personal credit score?

Remember:

Your business credit score and

personal credit score have no

impact on each other, so it’s

important to build them separately.

Anyone can view your business credit.

The scales are different.

Late payments areweighted, differently.

Early payments areweighted, differently.

including your customers, rival companies, and potential partners.

The scales are different.

Late payments areweighted, differently.

Early payments areweighted, differently.

Anyone can view your business credit.

1-100 for business credit (with 75+ being considered “good”)300-850 for personal credit (with 680+ being considered “good”).

Late payments are weighted, differently.

Early payments areweighted, differently.

Anyone can view your business credit.

The scales are different.

Business credit takes “days beyond term” (DBT) into account, which reflects the exact number of days that a payment is past due. With personal credit, late payments don’t affect your score until you’re 30 days late.

Early payments are weighted, differently too.

Anyone can view your business credit.

The scales are different.

You can improve your business credit score by consistently making payments before the due date. With personal credit, early payments have no effect on your score whatsoever.

Late payments areweighted, differently.

How can youbuild your business credit score?

How can youbuild your business credit score?

Checking your business credit

report multiple times does not affect

your business credit score.

Act like a business. Get a tax ID number and start separating your personal and business expenses.

Be visible. Make sure your business’s suppliers and lenders are reporting your trade activity to Experian.

Borrow and pay on time.Paying off financial obligations according to the agreed-upon terms demonstrates responsibility.

Monitor your profile by subscribing to Experian’s Business Credit Advantage service.

How does business credit fit into lending decisions?

How does business credit fit into lending decisions?

Download the Credibly Business Journal

Vol. 2: Building Business Credit to learn

about the “five C’s of credit” that lenders

use when making lending decisions.

Businesses with “thin”

credit reports — showing

little or no credit activity —

are less attractive to lenders.

Small business owners

who understand their

business credit score are

41% more likely

to be accepted when they

apply for a business loan. (source)

Businesses with good

credit often qualify for

loans with better

payment terms than

those with poor credit.

Click any issue to download for free!