Do you know what your business credit score is, and how it can impact your finances?
Your business credit score is a numerical representation of the company’s creditworthiness. In other words, how financially reliable do the big credit agencies believe your company to be?
In essence, your credit score is a measure of your risk to lenders. It’s calculated based on your company’s credit history, payment patterns, outstanding debts, and other financial data. A higher business credit score indicates lower credit risk, making it more likely for the company to secure favourable financing terms, loans, and partnerships.
How Does a Business Credit Score Affect Your Business?
Lenders, suppliers, and potential business partners use your credit score to assess your company’s financial stability. The higher your credit score, the more likely it is that you’ll be able to meet your financial obligations, honour your credit and repay any loans.
So, having a good credit score isn’t just an arbitrary financial metric – it helps you borrow money, fund your growth, and find the best customers and suppliers.