A good business credit score can help secure loans and otherwise finance your business. That means it’s important to monitor this figure on a regular basis. Just as with personal credit, you can gain access to your business credit report for free. However, you will likely need to pay for an upgrade or subscription to get all of the information you seek.
Why You Should Check Your Business Credit Score
If you’re just starting a business, you might not yet be aware of how important this number is. According to business credit expert Marco Carbajo, on the U.S. Small Business Administration’s blog, study results indicate that 20 percent of small business loans are not granted because of poor business credit.
When you are in the beginning stage of creating a business, your business won’t have a credit score. Later, a higher business credit score could open the door to more loan options, lower insurance premiums, and lower interest rates. As you progress at improving your credit, you will need to check it periodically.
Where to Go
One resource to check out is Dun and Bradstreet’s CreditSignal, which is a free service that alerts you when your reports or scores change. However, you are required to pay for an upgrade beyond the limited information provided at no charge. Another option is to register for a credit monitoring service, which will give you some access to Experian reports, as well as and Dun and Bradstreet reports. Such services generally require subscriptions or fees for more detailed reports.
Improving Your Score
If reports have revealed that you need to improve your business credit score, you can take a few useful steps: Start by paying off any outstanding balances. As you do this, you can open new lines of credit when they become available to your business. Always adhere to the terms of credit to which you have agreed.
Building good credit may involve patience and diligence. When your business credit score is not desirable, you can improve it over time. If you need help financing your business and don’t qualify for a traditional loan, there are other options. Contact Monstera Lending Group, so you can explore the possibilities.