Understanding Your Business Credit Score

Understanding Your Business Credit Score

Business credit score plays a fundamental role in determining the terms of securing financing for lenders. A good business credit score places you at a vantage point when negotiating interest rates for loans. To enjoy the benefits of having a healthy business score, it is prudent to understand what it entails. Below is an insight into all you need to know about business credit.

What Does Business Credit Score Mean?

A business credit score refers to your business credit report’s numerical data. The scores are often generated by bureaus such as FICO, Equifax, Experian, Dun, and Bradstreet. Each bureau has different business credit score ranges. For instance, FICO has a scale between 0 and 300.

Determinants of Business Credit Scores

Unlike personal credit scores, business credit scores are guaranteed based on various factors. For instance, you have to show lenders the amount of debt your business carries. Also, you have to provide information about the length of your company’s credit history. A lengthy business credit score history gives you a better chance of securing a loan.

Thirdly, you must indicate the type of goods and services your company handles. This should go hand-in-hand with the company’s size. Large-sized companies are likely to receive more funding compared to small businesses. Furthermore, you are expected to provide ownership details to lenders and risk factors involved in your business.

Importance of Business Credit Report

Commercial lenders such as banks and Small Business Administration (SBA) lending firms have to prove that your business is viable. With a business credit report, you can negotiate for favorite interest rates. Business credit scores also determine the amount of money you can secure from financing institutions. If your business has a good business credit score, you stand a chance of expanding your loan amount over time.


As a business owner, you cannot afford to neglect your business credit score, as it will help you assess your business venture’s position. Get in touch with Diamond Capital Financing for business credit score services.