What Are Your Digits?

Sure, it’s one of those questions that makes you squirm a bit, but knowing your business credit score is important. Those fickle numerals offer many benefits beyond just helping to obtain a loan. Let’s break down what a business (or trade) credit score is all about.

The basics:

1.     What credit agencies look at: Amounts owed to suppliers and lenders, legal filings from courts and company information from state filing offices, public records, credit card companies, collection agencies, corporate financial information and marketing databases.

2.     Where you should be: Business credit scores fall somewhere between 0 – 100 (75 or more is considered ideal) and are based on a company’s creditworthiness.

3.     Why it’s important: Generally speaking, strong business scores help protect personal credit scores and limit personal liability. You’re also more likely to receive higher credit limits with lower interest rates.

While building business credit may not have been top of mind when you were writing your business plan, keeping your digits in pristine order will be valuable when you want to grow or need to make major changes.

Source: http://www.manta.com/resources/tip-of-the-day/what-are-your-digits/?su=hq344mgu9vl41l&utm_medium=Email_Marketing&utm_source=Newsletter&utm_campaign=TOTD&utm_content=TOTD_ReDesign_LM_Test&utm_term=15816