Three simple steps to increasing your business credit score

Improve your credit score - Maya on MoneyMany small business owners are unaware that they have a business credit score. This number is separate from your personal credit score and is used by lenders to determine whether or not to extend financing to your business. In this blog post, we’ll show you how to use business credit to your advantage with The Business Cowboy so you can get approved for the financing you need to grow your business.


What is business credit? 

Business credit is a three-digit number that lenders use to evaluate your creditworthiness. This number is based on your payment history, public records, and other factors. Just like your personal credit score, a higher number means you’re a lower-risk borrower and are more likely to be approved for financing. 


How do I get started? 

The first step is to find out what your business credit score is. You can request a free report from one of the major credit bureaus (Experian, Equifax, or Dun & Bradstreet). Once you have your score, you can begin working on improving it. 


What if my score is low? 

There are a few things you can do to improve your score:

  1. Make sure that all of your payments are being made on time and in full.
  2. Keep accurate records so that the information being reported about your business is accurate.
  3. Consider using a business credit card to help build up your payment history. 


How to check your business credit score for free


There are a few different ways to check your business credit score for free. The most common way is to request a report from one of the three major credit bureaus: Experian, Equifax, or Dun & Bradstreet.


You can also use a business credit monitoring service like Nav or CreditSignal. These services will provide you with ongoing updates about your business credit score and report any changes so you can stay on top of your finances. 


What is a good business credit score? 

A good business credit score is anything above 700—however, the higher your score, the better. A score of 750 or above is considered excellent and will give you the best chance of being approved for financing. 


How to use business credit to get approved for financing


Once you have a good business credit score, you can start using it to your advantage. When you apply for financing, lenders will pull your business credit report and use your score to help them make a decision. A high score shows that you’re a responsible borrower and are more likely to repay your loan, so you’re more likely to be approved. 


If you’re not sure where to start, consider applying for a business credit card. This is an easy way to build up your payment history and improve your score. Once you have a good history with one lender, you can begin applying for other types of financing, such as loans or lines of credit.


Using business credit to get approved for financing is a great way to grow your business. By following the tips above, you can improve your chances of being approved and get the funding you need to take your business to the next level.

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