When you’re running a business, you need a business credit score to ensure that your finances are in order and stay separate from your personal finance details. However, managing a business credit score isn’t always the same as managing your personal credit score and finances. At Credithub, we’re here to help business owners like you manage credit and finances with top-quality solutions. Read more about what may impact your business credit score and get started with us online today.
Number of Years in Business
One of the biggest factors that affect your business credit score is how many years you’ve been in business. If you’re just starting out with your business, your score will be lower because there isn’t as much history that credit bureaus can use to help determine your creditworthiness. The more years you’re in business and utilize a business credit line, the higher your score can grow.
How Many Applications You’ve Submitted
When you’re trying to build credit and get financing for your business, you may think that getting as much help as possible is a better plan. However, the more applications you submit, the more inquiries there are against your business credit. Each of these inquiries has the potential to bring down your credit score, so it’s important to only apply for financing if you need it.
Lines of Credit
Of course, the number of credit lines you have open in your business name will affect your credit score in the same way that having many credit cards affects your personal credit score. By opening fewer lines of credit with higher limits or financing amounts, you can improve your business credit score more easily and pay down debts while paying less in interest.
Payments, Collections, & Liens
Of course, everyone knows that paying your credit bills on time consistently will boost your credit score. This also goes for any collections or liens placed against your business, and either of those two actions may negatively impact your business credit score.
Learn more about business credit, financing solutions for your business that will help you create a great business credit score, and so much more from Credithub! Contact us today to get started with your business credit needs.
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