The Complete Guide to Understanding Business Credit

Oct 8, 2019

The Complete Guide to Understanding Business Credit

Just like people have credit, so do businesses. If you own a business, your business may already have its own credit score—particularly if you’ve ever borrowed money for your business. 

Your business credit measures creditworthiness, or how risky you are as a borrower. It’s used by lenders and financial institutions to determine whether or not they’ll lend to you and at what rates. Established businesses typically have both a business credit report, which details the history of your business’s relationship with credit, and a business credit score, which is a number that’s meant to indicate how positive or negative your business’s credit history is. Newer businesses might not have either yet.

Read on to learn how your business credit score is calculated, where you can check your business credit, and how to build business credit.

About the Author

Elizabeth Aldrich

Elizabeth Aldrich

Elizabeth is a freelance writer covering personal finance, business, and travel. Her writing has appeared in The Motley Fool, Business Insider, Yahoo! Finance, LendingTree, Student Loan Hero, FOX Business, and more.

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