1300 760 930 Customer Login
Login
Blog
Aug 2016

What is a business credit score?

August 11, 2016
Capify Australia

How much  do you know about your business’s credit score? If the answer is “not a lot,” you’re not alone. Entrepreneur magazine reports that less than 10% of all business owners understand how their business credit score is established. If you want to access business funding – be it a small business loan or line of credit or more flexible payment terms, it’s important to understand your business credit score.

What is a business credit score?

Creditors are increasingly using business credit scores as part of their assessment process when making lending and credit decisions. As your business applies for and receives credit, a business credit score is established. That score will then act as a tool for credit providers to use when assessing whether or not you are approved for business credit.

A good business credit score can lead to lower financing costs on loans and enable your business to qualify for better credit terms. Similarly, a negative business credit score can potentially result in higher interest rates and lower credit limits for business funding.

A business credit score is established by the information in a business credit report. The information in the report is gathered from a variety of public and private sources by credit bureau agencies such as Veda and Dunn & Bradstreet. The report may include:

  • A Business summary
  • Payment history
  • Public filings such as judgments and bankruptcies
  • Financial statements
  • Small business owner relationships and/or guarantors associated with the business
  • Credit limit recommendations
  • Scores predicting likely business failure or late payments
  • Industry payment benchmarks

Remember, it’s important to understand what a business credit score is. This information may boost your ability to obtain business funding, increase credit limits and receive more favourable finance terms. In our next bog we will discuss the role business credit scores play in the business funding application process.

 

Or call 1300 760 930 to speak with one of our friendly Lending Consultants now.

More like this

Feb 2019

Failure to lodge BAS on time penalty

February 27, 2019
Capify Australia

Running a small business requires owners to juggle numerous balls in the air. This brings great reward but also significant responsibility. Every now and again, a ball gets overlooked and this can be a costly exercise for SME owners when that ball is BAS lodgment. The next BAS lodgement date […]

More
Sep 2018

How to survive your peak trading season without burning out

September 18, 2018
Capify Australia

Every SME has its busy season. That time when you make bumper sales and have hoards of customers pouring through your doors. It could be Valentine’s Day, Easter, Christmas or another industry-specific spike in customer demand. Some SMEs even have a steady flow of business all year around. No matter […]

More
Sep 2018

Top tips for starting your pre-marketing strategy for the festive season

September 12, 2018
Capify Australia

Now is a terrific time to get your pre-marketing drive for the festive season all wrapped up. Get your customer base well worded up on the hot products and offers coming their way this Christmas – and get them excited about it. Kicking off your festive pre-marketing strategy means smart […]

More
Blog

Apply anytime, anywhere

  • No application fee
  • No obligation
  • See how much you qualify for

Still have questions?

See our FAQs

Chances are someone else has had the same question and the answer will be in our FAQs.

Call us

Call us between
8:00am – 6:00pm (AEST) Monday – Friday

1300 760 930

Copyright © 2019 AUSvance LLC trading as Capify. All Rights Reserved.