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Business Credit Scores

A business credit score is called to assess your business’ creditworthiness and evaluate its ability to pay back a business loan and debt-related obligations. It’s like your personal credit score.

If you’re looking for business funding, turn to First American Merchant is an award-winning business loan provider and a high risk processor that offers the best possible rates in the industry. Low credit scores are not a problem for FAM.

Business credit scores are granted by 3 major agencies:

  1. Dun and Bradstreet Paydex Score

The agency issues the Paydex score based on a scale of 0 to 100. The score is assigned taking into account how you pay vendors. If you pay your bill, you’ll get 80, and it’s a good score. You’ll get 100 if you pay your bill 30 days in advance.

  1. Experian Intelliscore plus

Experian Intelliscore Plus is also issued on a scale from 0 to 100. In this case, business evaluation is based on the following metrics:

  • Payment history
  • Frequency of derogatory marks like liens, bankruptcy, and more
  • Company profile like age of your business, the number of people employed, industry, and more
  • Credit utilization

Low risk businesses get 76 or more, which is considered excellent.

  1. Equifax Business Credit Report

Equifax Business Credit Report is based on 3 different scores:

  • A credit risk score that ranges from 100 to 992
  • Payment index that ranges from 0 to 100
  • Business failure score that ranges from 1.000 to 1.880. It measures whether it’s possible or not for your business to go bankrupt or whether it may close in the upcoming 12 months.

The higher the number, the better it is for all 3 scores. The scores are issued based on your payment and credit history.

  1. FICO LiquidCredit Small Business Scoring Service (SBSS)

The score was launched in 1993. It began to be widely used after the US Small Business Administration (SBA) began using it in 2014. A FICO SBSS score is issued from 0 to 300. When issuing you the score, FICO takes into account the information provided by the other credit reporting agencies, your personal credit history, and business’s financials. The majority of lenders will require minimum 140.