5 Factors That Affect Your Business Credit
What makes up your business credit score? What gives you the best chances
of getting a loan? Here are a few factors that play into your business credit
picture, and how you can make the most of them:
- Payment History: This is an important part of your business credit profile. It
is the basis of your D&B PAYDEX score. Vendors will look at your whole credit
picture and your PAYDEX is a part of that.
- Blanket UCC Filings: Pay attention to the order
in which you get certain types of loans, and which
UCC filings the lenders will file. Some lenders may
file a blanket UCC filing. This essentially says they
have an interest in ALL your assets. These blanket
UCC filings will then take precedence over any
later ones. This drastically reduces your ability
to get credit elsewhere. What you can do: plan
your credit with care and negotiate UCC filings according to your needs. For
example, if you need particular assets excluded from a UCC
filing to use as security for another loan, explain that in advance. That way,
you can get those items excluded from any blanket filings. Or get the loan
or account with the more specific UCC filing first. Some experts recommend
opening accounts with competing UCC filings at the same time. And negotiate
the details with each party simultaneously.
- Company Financials: With D&B, it’s important to make sure your financials
in your credit file are up to date. If they are not, it could negatively reflect on
your company when the lender compares available data. What you can do:
update your financials on your credit reports. Make sure they reflect your
current circumstances. And plan to update often.
- Company Legal Structure: having an LLC or corporation versus partnership,
etc. can also affect business credit. Lenders are less likely to loan money to sole
proprietorships and partnerships. They prefer corporations and limited liability
companies. So, if you aren’t incorporated, you should be. The advantages go far
past your ability to get credit.
There are other factors affecting your ability to get credit, like the amount of
debt you already have, and how heavily invested you are in your companyEven your personal credit can play a role in your approval or denial. Here we’ve
covered five of them. The better the all-around picture you can paint, the better
your chances of getting loan approvals.
About the Author
Brian J. Small is currently the CEO of TB HUB LLC.
At TB FINANCIAL HUB LLC, he specializes in helping business owners
establish excellent business credit scores and then leverage those scores to
access cash and credit for their businesses.
Brian J. Small is also the mastermind behind the
release of the exclusive Business Funding Suite. The Business Credit and
Funding Suite is the leading business cash and credit access system in the
For more information on business credit scoring, business credit, visit tbfinancialhub.com or