Your Business Credit Score

Does your business have its own credit score? You bet your sweet EIN it does!

While your personal credit score is tied to your Social Security number, your business credit score is tied to an Employer Identification Number — or EIN. This helps you keep your personal financial information private while you build and maintain your business credit score.

Why is it important to know your business credit score?

Having a higher business credit score makes financing more accessible & lowers the interest rate on borrowing. You may avoid being required to sign a personal guarantee that makes you personally liable. It can also help lower your insurance premiums for Workers Compensation, General Liability, Property Insurance, Professional Liability, D&O and Cyber Insurance.

How is your business credit score determined?

Timeliness of payments, the length of your credit history, and the amount of debt outstanding are the major components. Sometimes the size of the company and the industry can factor in as well.

How can you improve your business credit score?

Pay your bills and expenses on time, apply for a business credit card to build credit, use credit regularly and responsibly, monitor your score, and keep the credit utilization below 30% of your max limits.

Other important things to keep in mind:

· Keep personal and business expenses separate, so you can deduct business expenses against business income, and lower your taxes.

· Business credit scores are ranked on a scale of 0 to 100, while business scores using the FICO Small Business Scoring Service (FICO SBSS) range from 0 to 300.

· Anyone can check a business credit score to see how a business ranks!!