You may be familiar with your personal credit score, but do you know what factors drive a business credit score? The top three are trade, trade, and more trade information. You see, the number and percentage of trade credit lines that are considered delinquent or severely delinquent can have a major impact on your business’ credit score. High utilization of trade credit lines can also have a negative impact. The next most important factor affecting your business credit score to look out for would be the presence of derogatory information, such as your account being placed for collection or having a public filing on your record (liens and judgments).
So how do you keep your business credit score in good standing? It’s easy. Pay those bills on time and settle disputes with creditors and the government before they turn into negatives on you report and cause your business big problems.