How are small business credit scores determined?

Credit scores are a vital part of your business; this includes your business and personal credit scores. Your credit scores will determine if your loan gets approved or not. It will also govern the terms and rates of your loans. There are 5 factors that are taken into account when determining your FICO score.

  • Payment history: 35% (Do you pay your bills on time? If not, how late were the payments? Just one late payment can decrease your credit score by as much as 100 points!)
  • Credit utilization: 30% (How much of your available credit do you use? This is portrayed as a percentage.)
  • Credit history Age: 15% (How long have you accessed credit?)
  • New credit: 10% (How many credit cards or loans have you recently applied for? How many times has your credit score been accessed?)
  • Credit mix: 10% (What kinds of credit is in your credit history, such as utilities, phone bills, line of credits and mortgages?)

Marcadis Singer PA are debt collection attorneys, our practice is focused exclusively on all matters concerning the collection of money that is owed to individuals and businesses.   An often forgotten source of financing, is the rapid collection of receivables.  If your small business is in need of collection services to help grow your business, don’t hesitate to call.

 

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