CAPITAL GROUNDWORK
What Is Business Credit?
Business credit is credit information associated with a business rather than an individual consumer. Commercial reporting organizations can maintain business reports, scores, ratings, and payment information.
How business credit works
Creditors, suppliers, public records, and other data sources may contribute information used in commercial credit files. Different bureaus can have different information and scoring systems.
Does every business have a score?
No. A newly formed business may have little or no commercial credit activity. Registering a company or obtaining an EIN does not automatically create a mature business credit profile.
Business credit vs. personal credit
Business and consumer credit are separate reporting concepts, but some business financing can still involve owner credit or a personal guarantee.
How do you start?
Start by organizing the business foundation, checking what commercial credit information exists, verifying reporting relationships, managing obligations, and monitoring the results.
FREE CHECKLIST
Building business credit? Start with the groundwork.
Use the free Business Credit Starter Checklist to organize your business identity, reporting accounts, monitoring, and next steps.
Get the Free Checklist