Your Business Credit Score

Start building your business credit scores

In today's economy there are new underwriting guide lines for small business success. Creating and establishing a strong corporate foundation is one of those new guidelines. Banks and lending institutions want to see that your business has been built over a solid foundation expressing to them that you are a low risk business.

Your business credit score is one very large part of this corporate foundation. Today, lenders, creditors, and vendors are taking a deeper look into your business before offering any kind of service whatsoever. Having a good business credit score can be the difference between receiving business funding, interest rates on that funding, payback terms, and other business operational issues. Not having a good business credit score will leave your business without funding and with a weak corporate foundation.

Your business credit score is a large part of an overall solid corporate foundation

There are three business credit reporting agencies that all give you a business credit score. These agencies are Dun & Bradstreet, Experian, and Equifax. The most popular business credit score that most banks and lending institutions are going to look at is your Dun & Bradstreet PADEX Score. It is important however to make sure that you have a good business credit score with all three of the credit reporting agencies as they all focus on different data.

Your PADEX score is quite simple to understand. The score goes for 0 to 100. If you pay your bills on time, your PADEX score will go up. If you do not pay your bills on time, your PAYDEX score will go down. Banks and lending institutions want to see a PAYDEX score of 75 or better. This expresses to lenders that you pay your bills on time. If you want to have a PADEX score higher than 75 then you need to pay your bills before the due date.

See a PADEX score chart below:

 

PADEX Score Payments

100                 Very Early
90                         Early
80                     Prompt
70             14 days late
60             21 days late
50             30 days late
40             60 days late
30             90 days late
20          120 days late

 

Check all three of your business credit scores

SmallBusinessLoans.com has a dynamic business credit score builder where the end goal is to assist you in creating a solid corporate foundation and to approve your business for financing without utilizing a personal guarantee. 

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