Are you looking to get working capital for your business? Whether you’re considering a loan, line of credit, credit card or other forms of financing, your business credit score could significantly impact your approval odds. Furthermore, your company’s credit health could determine if you qualify for the most competitive terms the lender offers or if your borrowing costs will be steep.
What are the Most Popular Business Credit Scoring Models?
Dun & Bradstreet PAYDEX
The Dun & Bradstreet PAYDEX score sheds light on the company’s payment performance on past and current debts. It ranges from 0 to 100 – the higher, the better – and is calculated by using payment data that vendors and suppliers (limited to 875) provide to Dun & Bradstreet.
FICO LiquidCredit Small Business Scoring Service
The FICO LiquidCredit Small Business Scoring Service provides scores that span from 0 to 300. As the name suggests, it’s available through FICO, the leading assessor of risk posed by US small business owners actively seeking credit.
Intelliscore℠ Plus from Experian
The Intelliscore℠ Plus score from Experian also spans between 0 and 100 and offers an in-depth look into a company’s background data, payment trends, collection accounts and public records (if applicable). Experian relies on data reported by third parties to generate this score, unlike some models that allow self-reporting by the business owner.
Equifax Business Delinquency Risk Score
The Equifax Business Delinquency Score ranges from 224 to 580. It predicts the likelihood of a company becoming 90 or more days delinquent on its debt obligations within the next 24 months. This score is used by lenders, collections analysts and credit portfolio managers.
5 Reasons to Monitor Your Business Credit Score
1. Prevent Fraud
You can stay on top of your company’s credit health by monitoring your business credit score. Any sudden changes in your score can indicate that your business is a victim of identity theft or fraud.
2. Assess Business Health
Your business credit score also sheds light on how your company is performing. If your score is on the higher end, you likely have a healthy cash flow level and are current on your debt obligations. Even better, if you apply for credit, you will probably qualify for the most competitive terms offered by the lender. But if your business credit score is low, your company could be in financial trouble and borrowing funds to get back on track may be a bit more challenging.
3. Safeguards Your Personal Assets
Many lenders require personal guarantees for credit extended to companies with lower business credit scores. Unfortunately, this puts your personal assets at risk as you become personally liable for the funds your company borrows. But by monitoring your business credit, knowing where you stand and applying when it’s up to par, you can safeguard your personal assets by not having to personally guarantee business loans.
4. Rectify Credit Errors and Mistakes
Did your business credit score drop unexpectedly? The only way to know is by monitoring it for changes and promptly reviewing your entire profile. If this happens, there’s a possibility that your report contains erroneous information that needs to be rectified.
5. Get Better Financing
Have you been holding out on applying for financing until your business credit score improved? If you monitor it, you’ll know when it increases and can apply for the capital you need immediately.
How to Check Your Business Credit Score
Nav Business Credit Reports
Visit Nav.com and complete the online questionnaire in its entirety to view your free business credit scores.
Dun & Bradstreet Business Information Report
You can purchase this document, which provides a collection of business credit scores and ratings, for $139.99 directly from DNB’s website.
FICO Small Business Scoring Service
Navigate to FICO’s Small Business Scoring Service landing page and select the Contact Us button to request a demo from a member of the FICO team.
Equifax Business Credit Reports
Submit an online request online to be connected with a member of the sales team to discuss this product and how it can benefit you in more detail.
Experian Business Credit Reports
You can access your Experian Business Credit report in minutes directly from the website. Simply enter your company’s name, city and state into the online form, and select the “Get your report now” button.
A list of companies that have information matching the information you provided on the prior page will appear. If you spot your company’s name, select the “Proceed” button (or refine your search if there are no hits).
On the next page, you’ll find four business credit report options:
- CreditScore Report: view your business credit report, a one-time view of your company’s credit score, a summary of credit data, financial payment info and your Intelliscore and Financial Stability Risk Rating with this cost-efficient option (Cost: $39.95 per report)
- ProfilePlus Report: includes a one-time review of your business credit score and report that features credit, business, tradeline history and financial payment data (Cost: $49.95 per report)
- Valuation Report: features an assessment of your business value, fair market value, and key performance indicators in a multi-page report based on the information you provide about your company’s revenue, payroll, assets, liabilities and other expenses over the past one to three years (Cost: $99 per report)
- Business Credit Advantage: this holistic solution includes real-time updates, disputing and tracking capabilities, dark web surveillance, access to lending data viewed by banks and your Intelliscore and Financial Stability Risk Rating (Cost: $189 per year)
Choose the one you’d like to access, input your payment information and view your company’s credit report.
While you’re visiting Experian’s website, be sure to get a copy of your free credit report and view your FICO score. When you sign up for a free account, you’ll also get the following:
- Monthly Experian credit score and report updates
- Experian credit report monitoring for new credit inquiries, new accounts, changes in account balances or credit utilization, positive account activity and dormant accounts
- Real-time alerts any time activity takes place in your Experian credit profile
- FICO score monitoring of Experian data
- A free personal privacy scan and dark web surveillance report
- Customized credit card and loan offers (if you qualify) from Experian’s lending partners
- Access to Experian Boost that could instantly improve your Experian FICO score
Or you can explore other more in-depth offerings from Experian that come at a price but feature added benefits to help you improve your credit health and protect your financial data. They include three-bureau credit report monitoring, three-bureau credit reports and scores (updated monthly), industry-specific FICO scores (i.e., auto, bankcard and mortgage scores), access to the FICO Score Simulator, Experian CreditLock and identity theft insurance of up to $1,000,000.
Sign up today for a free account to stay on top of your personal credit health. It’s fast and easy, and you don’t have to put a credit card on file to get started.
