Breaking Down a Business Credit Score

Business Credit Bureaus collect three types of information on your business:

  1. Credit obligation information from your suppliers and lenders

  2. Legal filings from local, county and state courts

  3. Company background information from independent sources, including state filing offices, public records, credit card companies, collection agencies, corporate financial information and marketing databases

This information is then combined with information from other sources such as:

  • Payments reported by vendors
  • Information in Public records
  • Information from collection agencies
  • Company demographic information compared to others in the industry

All of this information is then combined and turned into a score by an algorithm. Understanding how the inputs affect the outputs is crucial to building a strong business credit score. 

LEARN HOW TO BUILD BUSINESS CREDIT

OR

Read Part 6 of The Small Business Credit Blog

 

Small Business Finance, Small Business CreditOusmane ToureComment