Understanding Business Credit Scores and Improvement Strategies for Small Enterprises

A financial counsellor, Rosemary Steinfort, explains that a business credit score is a numerical rating used by lenders and suppliers to assess a company's creditworthiness and risk level. It is derived from credit reports containing details like borrowing history, credit applications, and payment timeliness over the past two years, with overdue payments of $150 or more remaining on record for five years. A good score facilitates easier access to loans and better terms, while a poor one can lead to higher interest rates or credit denial. To improve credit, recommendations include paying bills on time, reducing credit card limits, and limiting credit applications. Errors on reports can be corrected directly with providers, and financial counsellors offer free assistance for debt management.