Page 7 - Everything You Need To Know About Personal and Business Credit by Adrean Yancy

Everything You Need To Know About Personal and Business Credit
Factors Affecting Business Credit Score

The following factors are used to determine your business credit score. However,
some factors are weightier than others. Also, the factors are di erent based on
di erent scoring models.

Business Age: How old is your business? Whether your business is new or some years
old, the age of your business will contribute to some of the factors used to score your
business credit.

Payment History: This is one of the most critical factors that determine your score.
How regularly do you pay back loans? Does your business delay payment, or do you
pay on time? Some credit bureaus have used payment history as the single and only
factor to determine a credit score. So, timely payment helps improve your score.

However, the best way to go about this is to ensure your business pays before time.

Revenues: How much does your business generate yearly? Businesses that generate
high revenue can score higher than businesses with low revenue.

Assets: Do you have an asset? Do you have a property? If yes, then this could increase
your credit score.

The Risk Attached to your Business Niche: Is the industry of your business involved
in high risk or less? Lenders often look up the data on your industry.

Business Stability: If your business growth is stable, then that's a plus for you. Banks
and other lenders often put this into consideration before awarding any loan.

Company Size: How big or small is your company? Your business size plays a vital role
in your score evaluation.

Public Record: Yes, though it is a business credit score, most lenders often look at

your public records like UCC, bankruptcy, lien, or any judgment against you.

# 4