Business Credit Scores
A business credit score is a numerical representation of a company's creditworthiness, similar to a personal credit score. It helps lenders and suppliers assess the risk of extending credit or doing business with a company. Factors influencing this score include payment history, credit utilization, and the length of credit history.
These scores typically range from 0 to 100, with higher scores indicating lower risk. Various agencies, such as Dun & Bradstreet and Experian, calculate these scores using different criteria. Maintaining a good business credit score can lead to better financing options and favorable terms with suppliers.