Is your business score a mystery to you?
Business credit scores right now are where personal credit scores were a decade ago; they are still very much a mystery to most small companies. But like your personal score, your business credit score must be cultivated and nurtured if you expect it to be a useful tool when you want to borrow money.
A fast and easy way to build your business credit score is to establish relationships with companies that report payment history. Companies that issue business credit cards and commercial credit agencies (like Experian or D&B) need to hear from you.
Another way to help build your business credit score is to establish ‘trade’ credit with vendors who report. For example, if you buy supplies on terms (where the invoice is due in 30, 60 or 90 days), and the vendor reports that account history to a credit agency, it can help you build business credit. We have great relationships with our paper vendors and we buy on terms.
Building and protecting your business credit score is an important step in securing your business’ future.