Steps to Improve Your Business Credit

A business credit score is the metric many financing companies and even prospective clients will use to gauge a business’ trustworthiness and fiscal responsibility. At every stage in any business’ cycle having as high a FICO as possible is essential. Achieving and maintaining a healthy credit rating can make qualifying for financing at better rates as well as being accepted by your industry’s best suppliers easier. In the beginning, some business owners may take a somewhat creative approach to financing, extending their personal credit too far to get their business off the ground. Those decisions can sometimes come back and haunt a business owner down the road.

It is very common for successful businesses to have had a rocky financial start. According to the Federal Reserve Bank, about 45% of small business borrowers are turned down by banks because of their credit scores. National Business Capital, a leading alternative financing company, however, has an over 90% acceptance rate and financial underwriting that is not solely based on FICO. Realizing that it is important for business owners to maintain their upward momentum, National Business Capital offers these steps for improving their business credit score and to increase their chances to obtain small business financing:

  1. An established credit history weighs favorably with potential financiers so it is important to demonstrate responsible spending habits. Use your credit cards and lines of credit, but do not max these out. Limit spending to within 20% to 30%.
  2. Another aspect to establishing a positive credit history is to make certain to make payments on time. Those who pay their bills earlier than expected also find favor with lenders.
  3. For vendors, use companies that report to credit bureaus. This will boost your business credit just by making timely payments.
  4. Do not repeat the financial mistakes of the past. A business’ financial history is a public document, and bankruptcies, liens or other judgements remain on a financial report for up to 10 years.

Sound Advice to Build Your Business’ Credit

Building solid business credit will assist companies to qualify for lower-interest small business financing, business credit cards and better terms with favored suppliers. So here is a quick recap of the steps to take to improve your business’ credit:

  • Keep your credit information current via credit bureaus
  • Establish solid trade lines
  • Make payments on time, early if possible
  • Do not repeat prior credit mistakes

If you have questions about how to improve your business credit to qualify for small business financing, please call National Business Capital’s Business Consultants at (888) 888-9124 for a confidential consultation.

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.