Not all credit bureaus specialize in consumer credit reporting services. Some of them offer services to businesses. Dun & Bradstreet, Experian and Equifax, for instance, all offer credit reporting services for businesses. If you’re trying to obtain a loan or any other form of debt-based financing, you should be conscious of your business credit score. Making any of the following wrong moves could result in a lower score that lowers your chance of securing financing.
5 Things That Can Hurt Your Business Credit Score
#1) Hard Inqueries
Like consumer credit scores, business credit scores are affected by hard inqueries. A hard inquery is a request from a creditor, such as a bank, to check your credit score. Credit reporting bureaus allow hard inqueries, but they may come at the cost of a lower score. The more hard inqueries your business has, the greater the risk of its credit score dropping.
#2) Late Payments
It shouldn’t come as a surprise to learn that late payments can hurt your business credit score.
#3) Closing Credit Accounts
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#4) High Debt-to-Credit Ratio
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#5) Victim of Fraud
Your business credit score may suffer if you’re the target of fraud.
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