Good credit is essential for running a successful business, not only on a day-to-day basis but also for the long-term growth of your business. A good credit score will help you receive more favorable terms for loans and lines of credit, in addition to establishing good relationships with your vendors and suppliers. GNEC takes pride in helping small businesses understand the importance of having good business credit. Join us in person on May 18th at 6 pm, 211 Warren St, Newark, NJ, as we partner with PNC to help small businesses understand the value of credit, how to build a good credit history, and small business financing.

Click here to register.

What is a Good Business Credit Score?

Business credit scores, just like personal credit scores, are calculated using multiple factors, such as payment history, length of credit history, number of open accounts, and the amount of debt. There are multiple credit scoring models used to assess businesses, with Experian and Dun & Bradstreet’s Credit Score being the most widely used. Lenders and other service providers use the same credit scoring model when determining your business’s creditworthiness. The most heavily weighted factor when calculating your credit score is payment history, followed by a combination of length of credit history, type of accounts, and balance owed. Generally, the higher your score, the better terms you will be offered for financing, as well as reduced interest rates on your loans. 

GNEC provides fixed, low-interest rate loan funds for qualifying small businesses. We offer support and financial assistance to small businesses who may not qualify through traditional means. We have a holistic approach and take the time to understand the factors that impact your credit score before we make a decision on your eligibility. Click here to review our loan programs and to apply.

Why is a Good Business Credit Score Important?

A good business credit score will demonstrate to potential creditors, vendors, and other service providers that your business is financially sound and capable of meeting its obligations. This is essential when seeking to finance growth, large purchases, or expand your business, as lenders and suppliers need to be certain that you are capable of repaying the loan and honoring the terms of payment you have agreed upon.

Having a good credit score will result in more favorable terms for payment, including lower interest rates, reduced late fees, and more lenient payment terms. A good business credit score will open the door to additional financing options, including more traditional forms of financing, such as bank loans, and nontraditional forms of financing, such as credit lines from vendors and suppliers.

Finally, having a good business credit score will help you gain access to credit cards for your business. This is beneficial for start-ups and small businesses, as separate credit cards for business expenses and purchases can provide you with more accurate bookkeeping and tax preparation. GNEC’s BackStop program provides small businesses with support for bookkeeping and managing their finances.

Tips to Improve Your Business Credit Score

Improving your business credit score is an ongoing process, and good credit must be maintained to reap the most benefits. Here are some tips to help you improve your credit score.

  • Pay your bills on time and in full. Late or delinquent payments can be reported to the credit bureaus and can lower your business credit score.
  • Monitor your credit report – Monitoring your business credit report is essential to help ensure accuracy. Business credit reports are not as readily available as personal credit reports, so it is essential to do your due diligence and correct mistakes as soon as possible.
  • Have a good mix of accounts – It is important to have a mix of account types on your credit report, such as short-term and long-term accounts, revolving accounts, and installment accounts. This will help demonstrate to potential lenders and creditors the different aspects of your business.
  • Maintain good relationships with lenders, vendors, and suppliers. Your payment history with your creditors, vendors, and suppliers will be a key factor in determining your company’s credit score. Maintaining good relationships with them can also be key to gaining access to more favorable terms and conditions.
  • Limit the number of credit inquiries – Every time you apply for credit, it will be reported to the credit bureaus and can have a negative impact on your credit score. It is important to ensure that when you apply for credit, there are specific needs for which you are applying.

As part of our effort to help you grow, we’ve joined forces with Dun & Bradstreet to help you acquire the funding you need to be successful. Our website contains many tools to help you reach your goals.  

Please visit and use our credit resources tool to help you on your journey to success.

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