May 8, 2017
WHAT BUSINESS CREDIT ISi
A company’s business credit is its perceived ability to make good on obligations according to the terms of its contracts.
This is often expressed as a collection of scores and ratings found in a business’s credit file. When a company is said to have good business credit, it usually means the organization has a record of responsible financial behavior. Poor business credit is often the result of late payments, defaults, liens, or other financial woes. Business credit bureaus compile payment information and public records into various scores and ratings. Taken together, these comprise the business’s credit file.
How to Build Business Credit
Whether you’re new to building your business credit or looking for ways to improve your profile after having been denied a contract or loan, there a few steps you can take to help impact your scores and ratings.
Starting a Business
Scores and Ratings
An organization’s business credit file is a collection of scores and ratings that allude to an organization’s ability to make good on contractual obligations. These scores and ratings, which are outlined below, can help a business in numerous ways: a business can use these metrics when deciding to contract with a supplier, a bank can use the information in a credit report when deciding to offer a loan, and business owners can use the scores themselves in an attempt to improve their credibility. Whether you know what’s in your business credit file or not, it is important to understand that other businesses may be using the information to make critical decisions that could help or possibly hinder your business.
i The opinions, information and advice provided by Program Design Solutions and its Credit Advisors during business credit counseling sessions, events, tradeshows, podcasts, webinars and in articles and blog posts (collectively the “Information”) are provided “as-is”. Such Information may be authored by a third party and do not necessarily reflect the views or opinions of Program Design Solutions. Nothing stated or implied in the Information should be construed to be legal, tax, or professional advice. Program Design Solutions makes no representations or warranties, express or implied, with respect to such Information and the results of the use of such Information, including but not limited to implied warranty of merchantability and fitness for a particular purpose. Neither Program Design Solutions nor any of its parents, subsidiaries, affiliates or their respective partners, officers, directors, employees or agents shall be held liable for any damages, whether direct, indirect, incidental, special or consequential, including but not limited to lost revenues or lost profits, arising from or in connection with a business’s use or reliance on the Information. Program Design Solutions provides the information within as a courtesy. Please consult an attorney, tax accountant or credit counselor for specific information that addresses your specific situation.