If you are just starting your new business, there is a lot to learn. One thing that is usually top of every entrepreneur’s list of things to understand is finances.

There are many factors to consider in the business financial world. One that often comes up is a company’s business credit score. 
 

1. What Is a Business Credit Score?

In the United States, all adult consumers have credit scores that list their credit and financial histories. Similarly, many businesses do, too. Just as an individual having a high credit score can help them receive approval for a home or vehicle loan. A company that has a solid credit score is better qualified to take out credit cards, small business loans, and lines of credit. 
 
2. What Are the Scoring Criteria?
 
When it comes to building a strong credit score, there are numerous factors that the three major business credit reporting agencies – Equifax, Experian, and Dun & Bradstreet – take into consideration. The credit score criteria include:
 

• Total years in business
• Number of credit lines you apply for within the past 9 months
• Number of credit lines you have opened within the past 6 months
• 12 months of payment history
• Late payment history 

3. What Are the Benefits of Having a Strong Credit Score?

Because having a high score can help you obtain funding, one of the biggest benefits of maintaining a strong core is the security it can bring your business. For example, what would you do in the event of an emergency? If you have a good credit score, you have a better chance of approval if you ever need to cover unforeseen costs outside of your control. 

4. How Can I Increase My Number?

If your business credit score is low, it can be discouraging, but the good news is, there are several things that you can do to bring it up. First things first: Make timely payments. When the money is available, there is no easier way to keep your credit clean than to pay bills on time. In addition, scheduling bill paying can also be helpful. If you run into trouble, contact your lenders as soon as possible to see if they can work with you rather than trying to ignore it.

Business credit scores, like personal credit scores, can help or hurt business owners’ chances of securing funding for their companies. With a little bit of planning and careful money management, you can improve your chances of having a strong score.