How do I get my business credit score?

How do I get my business credit score?

Turn on the TV, read the newspaper or browse the Web and you're sure to find countless ways to obtain your personal credit scores. However, being a business owner also means you have another whole set of credit scores that need monitoring.

So what's in your business credit score? As with personal credit, payment history has the largest impact on your business credit scores. Public records and company reputation affect your credit scores, too.

This is where your merchant account plays a significant role in determining your credit scores. Fraud is looked at very closely and will trump a good payment history where business partners and lenders are concerned. If your business has been flagged frequently for your credit card processing, your credibility will be brought into question. Fraud, in regards to handling customer data and theft of information, is the leading cause of FTC lawsuits against credit card processing companies. This type of fraud by you or your employees not only jeopardizes your merchant account, it also hurts your business credit scores.

The major business credit reporting agencies
The dominant agency for business credit information is Dun & Bradstreet (D&B). When most businesses get started, they sign up for a "D-U-N-S" number -- a nine-digit number that others can use to get information about your company through D&B. Dun & Bradstreet not only receives data from credit and loan accounts, but also from trade accounts. These are accounts your company has with others that you do business with such as shipping companies. You can obtain your credit scores by visiting D&B's Web site. There you will find two options:

1. DNBi Self Monitor: This provides a more comprehensive view of your credit profile with D&B, in addition to receiving your D&B credit scores and rating. You will also receive e-mail alerts when significant changes to your credit scores occur.
2. CreditBuilder: This assigns your business a D-U-N-S number, if you do not have one already, and builds a credit profile for you. You also get a basic set of D&B credit scores and ratings.

Another company, Experian, is the premier credit agency for personal credit scores; it also handles business credit scores. Not much reporting of trade accounts occurs with Experian for the moment, but utility providers and suppliers are increasing their reporting to this agency. Experian offers three paid ways to obtain your business credit scores:

1. One-time check of your basic credit scores and report.
2. One-time check of a more detailed report including registration info on your company, liens and judgments, plus credit scores.
3. A subscription plan with your complete report. Experian claims to provide updated credit scores each time you log on.

Your business credit scores are as important to the financial solvency of your business as your personal credit scores are to your individual financial survival. Unfortunately, your business credit scores are not free, and anyone can obtain a copy of them without your permission. Invest in monitoring your business credit scores and your company's future will be brighter because of it.

Published: July 3,2023