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What Is The Business Credit Scoring System Based Upon?

2. July 2016

Business Credit Scores typically range from 0 to 100 with anything over 80 being excellent.

With personal credit payments can be made 29 days late for months and months with never having any impact on personal credit scores. That is because only 30 day lates are tracked with no one reporting or tracking late payments of 29 days or less. Not true with business credit scores.

Business credit reporting tracks down to the day the payment is made. Therefore if the payment was due on the 15th but is paid on the 5th it is reporting as being paid 10 days early. The same it true if the payment due on the 15th is paid on the 25th, that payment is reported as 10 days late.

Having business credit scores of 70 means that the payments due on the 15th are for the most part being paid ontime on the 15th of each month. While business credit scores of 60 let everyone know that the business in question typically pays its' debts 10 days late. The reverse is true of business credit scores of 80 which lets everyone know the business typically pays its' debts 10 days early.

For a small business to be viewed by lenders as low or very low risk of default, then that business should maintain business credit scores of 80 or higher. 

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