Credit

Business Credit Scores

small business

In addition to your personal credit score, did you know you also have a business credit score?

Although we’re talking about business credit scores, if you’re a small business owner, you should know your personal credit score is every bit as important as your business credit score—particularly when we’re talking about early-stage small businesses. In fact, most lenders will require a personal guarantee on any small business loan they offer an early-stage small business owner on any business loan.

It’s important to monitor your personal credit score, and you can do that with any one of the three major credit bureaus: Experian, Transunion, and Equifax.  For a very small fee, you can access the same information every creditor uses to evaluate your credit.

What might be confusing to many small business owners are the reporting bureaus for your business credit. With the exception of Dunn & Bradstreet, there are some familiar faces on the list, Experian and Equifax. In other words, as a small business owner it’s likely that you’ll have two Experian and Equifax reports. A report for your business as well as a report for your personal credit. Ignoring either report could potentially cost you when looking for a small business loan.

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