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Factors That Determine Business Credit Scores:

The following factors may be used to calculate business credit scores. Each scoring model is different, though, so some of these factors may not carry much weight, or may not be used at all.

• Payment history
• Age of credit history
• Debt and debt usage
• Industry risk
• Company size
• Payment Paid on Time

How Business Credit Scores Are Used

Lenders and other creditors need a means of determining how well your business repays debts before they will approve you for financing. This is where business credit scores can come in. Higher scores indicate to creditors that your business is more likely to pay bills on time, thereby improving the odds that you can obtain financing. Lenders can check your company’s business credit reports to get more detailed information about your business’s financial history, and business credit scores serve as shorthand evaluations.

Here are three other ways your business credit scores may be used:

1. Determine your borrowing power.
2. Determine your rates on business insurance.
3. Get more time to pay.

* All information is taken and copied from NAV.com, No alteration is done. Information is only used for educational purposes only.