Top 5 Ways To Boost Your Business Credit Score Quickly

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Top 5 Ways To Boost Your Business Credit Score Quickly

Figuring out how to finance a business is a common problem for new and existing business owners. Establishing business credit isn’t necessarily difficult, but it’s not simple either. Building a good business credit profile can be a long-term process, that requires planning and execution, but there are several things that a Business Owner can do to help speed up the process and help ensure they are building a good business credit profile. The benefits of having a good business credit score are well worth it. Not only does it help with obtaining financing when your business could use some additional capital, but it can also help cut down on unnecessary finance charges, and get your business access to more favorable funding terms. In this article we are going to cover the top 5 ways to boost your business credit score quickly.  

Business Credit Basics

Like individuals, businesses have credit scores and credit profiles. There are several different Business Credit Bureaus that gather information to help determine the credit worthiness of a business. The most common include Dun & Bradstreet, Equifax, and Experian. Unlike personal credit, there isn’t a uniform scoring model. Each Business Credit Bureau has their own criteria and data that they use, and each uses their own scoring model. These Business Credit Bureaus provide business credit reports that are used by lenders, suppliers, insurance providers, and other organizations to help them determine the risk of working with a business. In order to build a strong good business credit profile, it is important to be familiar with the different reporting agencies, and the factors that they take into consideration. 

Your business credit score and profile is not only used to determine the credit worthiness of a business, but it can also have an impact on other things such as; insurance rates, lease agreements, and other services where the credit profile of a business can be used as an indicator of how risky it is to work with a business. Having a good business credit score not only helps with obtaining financing, but it also puts the business in a better position for future growth and success. There are many factors that can be taken into consideration for a business credit score, including: payment history, time in business, judgements or liens, SIC Codes (industry codes), previous bankruptcies, and much more. Some of which are out of the Business Owner’s control. Below are some things that every Business Owner can do to start building and improving their business credit score.

5 Ways To Boost Your Business Credit Score

Use A Business Bank Account

This may seem obvious, but there are a significant amount of business owners that use their personal bank account for the business transactions. Having a separate business bank account, not only allows a business owner to more easily separate their personal finances from the business, but for a lot of small business loans it is required that the business has a business bank account.  

Some Lenders offer “Bank Statement Business Loans” where the approvals are primarily based on the monthly deposits into the business bank account.

Establish Relationships And Credit With Vendors

Establishing credit from your vendors, typically on a net 30-90 terms, can help a business owner take on new opportunities to grow and expand their business. By paying Vendors for materials and/or services provided after a business has had an opportunity to receive payment from their customers, can help with the overall cashflow of the business. Not all vendors will report to the Business Credit Bureaus, but establishing a relationship with those that do report, it can help build a payment history and improve the credit profile of the business.  

Open A Business Credit Card

Just like a personal credit card, a business credit card is a revolving credit line for the business, and can be a great tool for short-term financing needs. Unlike a personal credit card, a business credit card is associated to the business name and Tax ID of the business. Having a business credit card can help provide peace of mind for a business owner, and can help prevent the business owner from using their personal funds/credit to cover business related expenses. A business credit card typically reports to the business credit profile, and can help boost a business credit score.  

Build A Positive Payment History For The Business

One of the main indicators on whether a business or individual is credit worthy, is their payment history. Paying your bills on time is the number one rule for any person or business that is looking to build good credit and improve their scores. Having a positive payment history shows the Business Owner’s ability to manage their finances and honor their debt obligations. Having a positive payment history not only improves the business credit score, but it also lowers the risk from a lending standpoint, and can open up new business funding opportunities with more favorable terms. 

For more information about small business loans, read our article “Small Business Loans – What You Need To Know”

Monitor Business Credit Reports And Scores

One of the most important things that a business owner can do when trying to build a strong business credit profile, is monitor their business credit reports and scores. According to a report by, The Wall Street Journal found that nearly 25% of business credit reports have errors. These errors can range anywhere from having the wrong business start date, to not reporting the correct payment history. Without monitoring the business credit reports, it would be almost impossible for a business owner to be aware of these errors until they tried applying for credit. If an error is found, it is important to work with the business credit bureaus to have the information corrected. These types of errors can cost a business a significant amount in unnecessary financing charges, or in some instances, can prevent a business from being able to access credit.  

In Conclusion

Having a good business credit score can be key to a business’ success. It can help provide business funding when needed, cut down on interest and fees, and even lower insurance rates and premiums. As a Business Owner it is important to understand how business credit works, the different factors taken into consideration, and what can be done to help improve the business’ credit score. It typically takes time to establish a strong business credit profile, but there are things that can be done now to increase your odds of success. To take your business to the next level, start by making a plan and taking action today.  

Compare Business Loan Options

There are many different types of business credit available, depending on the qualifications of the business and business owner. Compare your business loan options today, and decide what will work best for your business.  

For more in-depth information about business credit, read our article “Business Credit – Everything You Need To Know”


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