check your business credit score

In today’s business landscape, having a strong credit score is crucial for small businesses. Your business credit score can impact your ability to secure loans and credit cards, negotiate favorable payment terms with vendors, and even secure a lease for commercial property. However, the process of checking your business credit score is different from checking your personal credit score. In this article, we’ll explore why it’s important to check your business credit score and how you can go about doing so with the three major business credit bureaus.

Why check your business credit score?

There are several reasons why it’s important to check your business credit score:

1. Terms on a business loan: Just like a personal credit score, your business credit score can impact your approval odds for a business loan and the terms of that loan. A higher business score can lead to a lower interest rate, saving you money in the long run.

2. Payment terms with vendors: Your business credit score can also influence the payment terms that vendors offer you. A strong credit score can give you more time to pay back vendors, improving your cash flow.

3. Lease for commercial property: Landlords often ask for your business credit score when you’re applying for a lease on commercial property. A low score could lead to rejection, so it’s important to know where you stand.

Considering the cost

Before jumping into checking your business credit score, it’s important to do a cost-benefit analysis. Determine how important it is to have your score at this moment and whether it’s worth spending the money. Some businesses that heavily rely on credit may need to check their score frequently to monitor their progress in building strong credit. Others may only need to check once a year.

It’s important to note that building a business credit score takes time, usually around three years. If your business is still young, you may not have a credit score yet. Additionally, not all credit scores may be accurate, so it’s important to take that into consideration as well.

Do you need to check all three credit scores?

When it comes to checking your business credit score, you may wonder if you need to check all three credit bureaus. If you simply want to gauge the health of your credit, checking with one bureau may be sufficient. However, if you’re applying for a loan or credit product that’s critical to your business, it may be worth checking all three scores and credit reports.

How to check your business credit score

Now that we’ve covered the importance of checking your business credit score, let’s dive into how you can do so with the three major business credit bureaus:

Dun & Bradstreet (D&B): To get a credit score from D&B, you’ll need to apply for a D-U-N-S number. Once you have that, you can choose from D&B’s different subscription tiers. Their free option, CreditSignal, provides four credit scores and ratings for 14 days on their website. You can also pay to see your complete credit report with their CreditMonitor service, which offers continuous online access to all your credit scores and reports.

Experian: Experian offers several options to check your business credit score. The least expensive option is the CreditScore Report, which costs $39.95 for one-time access. It provides your business’s credit score, banking and leasing information, and other key elements of your credit profile. Experian also offers more robust sets of data, such as the ProfilePlus Report, Business Credit Advantage, and Business CreditScore Pro.

Equifax: Equifax offers its Business Credit Report for $99.95, allowing you to check your business’s credit or that of another company. They also offer a Business Credit Report multi-pack, which includes five reports for the price of four. Equifax provides features like payment trend and payment index reports, which allow you to compare your business to others in your industry.

In conclusion, knowing your business credit score is essential for small business owners. It can impact your ability to secure loans, negotiate favorable payment terms, and secure leases for commercial property. While there may be costs associated with checking your business credit score, the information you gain can be invaluable when making important financial decisions for your business.