HOW IT WORKS

Steps to Building Business Credit

• Apply for a Credgrow business credit line in minutes!
• Gain access to Cregrow’s marketplace; full of exclusive ecommerce vendors, business products and top-tier professional development courses. (Members only)
• CredGrow reports your payments.
• Start building business credit! 

OFFICE PRODUCTS

BUSINESS LINE OF CREDIT

ELECTRONICS

BUSINESS CREDIT SCORE CALCULATIONS

DUN & BRADSTREET

PaydexScore
•Range (0 –100)•Based on payment data reported either to the bureau or to data-gathering companies that partner with the bureau
•Requires DUNS number
•Payments history from at least four vendors

Commercial Credit Score
•Range (101 –670)
•Predicts the likelihood of a delinquent payment on bills within the next year

Financial Stress Score
•Range (1001 –1610)
•Predicts the likelihood of business failure over the next 12 months

EQUIFAX

Payment Index (0 –100)
•Based on payment history with vendors and creditors

Credit Risk Score (101 –992)
•Indicator of likelihood of your business becoming severely delinquent on payments
•Factors company size, available credit, age of oldest account, evidence of nonfinancial transactions

Business Failure Score (1,000 to 1,610)
•Measures the likelihood of your business closing within a 12-month period
•Factors age of oldest account, credit usage, late payments, nonfinancial transactions

EXPERIAN

•Business Credit Scores (0 –100)

•Take into account multiple factors, not just payment histories    –Collecting credit information from your suppliers and lenders–Legal filings from local, county and state courts     –Public records and collection agencies

•Even small businesses that use credit responsibly will be assigned medium-low risk, while well-established businesses with a solid credit history will have an easier time attaining the low-risk rating

*Credgrow reports to multiple business credit agencies. 
Every bureau Credgrow reports to is not listed on this page,
this is not representation of every agency or credit provider CredGrow has a partnership with. 

What is Business Credit?

When applying for business credit, it's important to build a strong foundation of legitimacy. The perception of your business in the eyes of creditors, vendors, and lenders is critical to your ability to obtain goods and services with ease. Before creating any lines of credit, you must understand the importance of meeting or exceeding all lender legitimacy standards. There are over 20 points necessary for a business to have a strong foundation of credibility.

It is crucial that you use your exact legal business name on all applications. Your full company name should match what is on your corporation papers, licenses and bank statements. You can build a strong business credit profile even if you are not incorporated by establishing one on a sole proprietorship or partnership entity type.

Your business is not a true business unless it has a dedicated Federal Tax ID number (EIN). When you are operating your company with an EIN you are showing that you understand legally and have taken the steps to separate your personal financials from those of the business entity. An EIN also opens up more ways to build credit for your business, and have more credibility when dealing with other companies.

A business credit can be started much the same as a consumer credit commonly is, with small credit lines. The business can get approval for small credit lines to help build an initial credit profile. 

Business credit lines are designed to assist businesses in building their credit profile. Owners can get the business approval for small credit lines that help build the initial credit profile, which is a positive way to begin establishing business credit.

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