Resource
Basics of Business Credit
What You Need to Know About Business Credit
Business credit refers to the collection of scores, ratings, and other indicators commonly used by lenders, suppliers, customers, and other partners to help quantify the potential risk of working with a company. To help you better understand business credit, we’ll walk you through the basics and how you can use business credit to help grow your business.
How Business Credit Scores and Ratings Are Calculated
Dun & Bradstreet compiles payment information and public records into various scores and ratings. Government filings, financial documents, loan defaults, legal judgments, and liens are just some of the data points that can be considered. Trade references – —suppliers and vendors who report of payment experiences – —are another important factor. Taken together, this information is part of what comprises the business’s credit file, which is part of a company’s Live Business Identity in the Dun & Bradstreet Data Cloud.
Good vs. Poor Business Credit
When a company is said to have good business credit, it usually means the organization has a record of responsible financial behavior. While past performance is no guarantee of future success, potential partners often check a business’s credit file to assess the potential risk of working with that company. Here are some possible benefits of good business credit:
- Higher trade credit limits from suppliers
- More favorable interest rates on loans from banks
- Lower premiums on insurance policies
- Better lease terms for equipment and real estate
Poor business credit is often the result of late payments, loan defaults, liens, or other financial woes. Possible consequences may include:
- Losing out on new contracts
- Difficulty accessing capital from financial institutions
- Higher insurance premiums
- More expensive leasing and rental costs
If your business credit file is not up-to-date, companies viewing your information may not get a complete picture of your business’s credibility.
How to Establish and Seek to Build Business Credit
Establish and seek to build your company’s business credit file.
Inquiries on Your Business Credit File
Learn about the industries that may be interested in your business credit scores and ratings.
What’s the Difference Between Personal and Business Credit?
Personal and business credit share similarities, but also have fundamental differences.
Business Credit for Every Stage
From startups to multinational corporations, here’s how business credit can affect different companies.
What Is a Trade Reference & Its Potential Impact on Business Credit Scores and Ratings?
Past payment experiences may potentially impact your business credit scores and ratings.
Build Your Business Credit File
Take Steps to Potentially Help Build Your Business Credit File
A Guide to Financial Statements
Read our guide on what financial statements are, how they can be used, how they are prepared, and how you can share your financial statements with Dun & Bradstreet.
Why Did I Get a Business Credit Notification?
There are several reasons Dun & Bradstreet reaches out to business owners about their business credit files. Here are some of the most common.
Benchmarking for Small Business
Benchmarking is an important tool to help you set goals for your business. Read our introductory guide to the different types of benchmarking.
Top 5 Mistakes When Trying to Build Business Credit
Tips and pointers to help you avoid missteps when trying to establish a business credit file.
Business Credit Report
A business credit report can provide key information about a company's financial health, yet many companies aren’t fully aware of what it is, how it works, or how it can be leveraged to help win contracts, prove your company's creditworthiness, or help reduce costs associated with interest rates and insurance premiums.