Sponsor Robert Siciliano as he runs the Boston Marathon for Miles for Miracles, Children's Hospital Boston
ROBERT SICILIANO is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds.

FREE EBOOK

Check here if you're human

Sponsors

Business Credit Scores 101

0
Pin It

Are you a small business? Do you know your business’s credit score? The range is zero to 100 for most credit reporting agencies, with at least 75 being desirable if you want to be approved for financing and trade credit (business loan or line of credit), says a report at NAV.com and from Gerri Detweiler’s new book, Finance Your Own Business.

1SWhat determines credit score of a business?

  • Size of business
  • Payment history
  • Outstanding debts
  • Credit history length
  • Credit utilization ratio
  • Industry risk
  • Public records (which the credit agencies are always inspecting)

The credit score of your business may be different among the different credit reporting bureaus. The nav.com article summarizes the three most common bureaus below.

Dun & Bradstreet PAYDEX (zero to 100)

  • Based on the total number of payment experiences in D & B’s file, this is a dollar weighted indicator of the company’s payment performance.
  • Vendors and suppliers favor the PAYDEX.

Intelliscore PlusSM from Experian (zero to 100)

  • This credit risk score is statistically based and predicts the likelihood of payment delinquency in the subsequent 12 months.
  • This score incorporates multiple factors and is quite reliable.

FICO® LiquidCredit® Small Business Scoring Service (zero to 300)

  • The SBSS rates applicants by their odds of making payment deadlines.
  • The SBSS score is used for credit line and loan applications (up to 350K from the Small Business Administration).
  • 140 is the minimum score to pass the Small Business Administration’s pre-screen process.

Using Business Credit Scores

  • Lenders want to know how well your company pays debts. They won’t want to lend to you if your credit score is low.
  • When is the last time that you reviewed your business’s financial information? This should be done on a recurring basis.
  • Credit scores fluctuate and are not immune to calculation error. Contact the credit agency if you spot an error or it seems that your score is lower than it should be.

Improving the Credit Score

  • Companies can raise their score by avoiding late payments, among other actions. Improving the score won’t happen overnight.
  • Credit utilization should be about 25 percent.
  • Open several credit accounts.

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing identity theft prevention.

About the Author
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.

Similar Posts

  • 10 Credit Score Truths and Myths
    If your personal information gets compromised, a thief will open up financial accounts in your name. However, they will not pay the bills, and this will ruin your credit. Whether bad credit results from the legitimate credit holder’s irresponsibility or from identity theft, your ability to buy a car, rent a nice place, purchase a home
  • Protect from Personal Loan Scam
    Are you thinking of getting a personal loan? Hopefully you have a high credit score, as this will give you a better chance of getting the loan through a legitimate company. But even if your credit is excellent, you need to be aware of the personal loan scams out there. Not Respecting Your Limit You don’t want
  • How to build up or rebuild your Credit
    After taking all the necessary steps to Fixing a Credit Report after being hacked, it is then tome to rebuild your credit. Bad credit is bad credit no matter how it happens. No matter how responsible you are with your money, you won’t get a loan if there’s no evidence of this. The evidence comes
  • Ghosting Identity Theft Scams
    There are generally 2 types of financial identity theft. New account fraud and account takeover. New account fraud Identity theft can occur when someone opens a new credit card in your name, maxes it out, and doesn’t pay the bill. Account takeover Identity theft can also occur when a bad guy gets your information, uses it to
  • 9 Warning Signs Your Identity Has Been Stolen
    The Federal Trade Commission (FTC) provides the following list of warning signs that your identity may have been stolen: Accounts you didn’t open and debts on your accounts that you can’t explain Fraudulent or inaccurate information on your credit reports, including accounts and personal information, such as your Social Security Number, address, name or initials, or employer Failing

Comments are closed.

Xtreme School

Featured in

Anderson Cooper John Stossel Robert Siciliano Featured in
Browse by Month

Browse by Category