What is a business credit score?

We speak to credit score expert Paul Ryan to discover what a business credit score is and how you develop, maintain, and use your score

A business credit score is very similar to a personal credit score. Just like a personal credit score, your business credit score is an official measure of whether your business is likely to repay its credit, loan, or debt. Companies, including Equifax, Dun and Bradstreet, and Experian, create and update these scores based on your business payment history and cash flow. With a good business credit score, you can fund your business growth and operations far more easily. 

“Credit score companies look at the business’s payment history. They check if you are paying on time and confirm whether your business might be a little late in paying its credit or, worst case, delinquent. That’s the number one check credit agencies check,” said Paul Ryan, Business Solution Architect, ProSource. “I advise organizations to ensure that any type of credit you use is provided to the credit agencies. These include credit, leases, credit cards, and any other vendors or other payments that may not be applied to a credit score automatically.”  

Establishing a line of credit is

7 Tips for Building a Great Business Credit Score

7 Tips for Building a Great Business Credit Score

We’ve explained why your business credit score matters — it can help you secure financing, receive better insurance rates, and negotiate the terms of your lease. Now we’re focusing on the ways you can improve your business credit score, so you can enjoy those benefits and more.

Basics for Building Business Credit

To build positive business credit history, you should follow many of the same principles for building personal credit. We’ll go over them here, along with business-specific tips.

  1. Make sure your personal credit is separate from your business credit. 

To establish good business credit, you’ll first want to make sure your business credit profile is actually established. That means opening a commercial banking account to keep your business’s funds separate from your personal funds. From there, you can apply for and receive business funding separate from your personal credit.

  1. Pay early or on time.

Once you’ve been approved for business credit, it’s critical that you make all payments for your outstanding debts on time. This will be the most impactful part of your business credit score. Not only will you improve your credit score by paying on time, but you won’t have

How to Increase Security at Your Small Business

How to Increase Security at Your Small Business

Whether you have a dedicated IT team, sell your products online or simply use a computer for work tasks, it’s important to follow the latest security guidelines to help protect your data. Although security threats are ever changing, you can help safeguard information with a few solid tactics. Read these everyday tips we follow at The Business Backer to help keep your business more secure.

 

Follow Password Safety Best Practices

Weak passwords are one of the biggest security vulnerabilities when it comes to cyberattacks and account takeovers. In order to avoid password-related breaches, you may want to set up network guidelines to require a new password every couple of months, or talk to an IT professional to help set up password regulations for your work computers. Ideally, all computer users should regularly update all passwords used with a combination of letters, symbols and numbers. You can make managing passwords easier and more secure with the following technology:

  • Two-Factor Authorization: This option requires an additional step, like entering a code from a trusted device, to verify the identity of the user upon login.
  • Password Manager: You can use an encrypted password manager to

What Is an EBS? – The Business Backer

What Is an EBS?

When you apply for a small business loan, you may be asked to provide an EBS, or electronic bank statement. Generally, a special type of software is used to interpret and transmit data from an EBS file to other financial technology. This software, sometimes referred to as a data transfer service, helps provide a safe way to send information across financial institutions, lenders and other services. The Business Backer uses Plaid, a secure data transfer service that can quickly connect to your bank account for fast and easy transmission.

 

Why Was I Asked To Provide an EBS?

Lenders generally ask you to provide bank statements, financial data and/or link to a data transfer service in order to verify the information provided on loan applications, as well as to make sure that you can reasonably afford to take out the loan. Using an electronic bank statement can help save time when you apply for a loan when compared to other document submission methods.

 

What Is Plaid?

Plaid is a popular data transfer service that safely and securely transmits data from your bank account when needed, like when you apply for a loan or

How to Choose the Right Type of Loan for Your Needs

How to Choose the Right Type of Loan for Your Needs

Funding your business with outside capital is often necessary to help it grow and realize its full potential. If you’re in the market for small business capital, you may quickly realize there are many funding methods available. Read our guide to learn what to look for when choosing the right financing method for your company.

 

Determine Your Funding Needs

There are a few different types of business financing available to suit your funding needs. One of the main differences is whether you need ongoing capital from some type of revolving credit, or a larger lump sum from a small business loan.

Additionally, the funding timeline varies widely by lender. Small business creditors like The Business Backer work hard to make the funding process as easy and efficient as possible. Other business lenders, including banks and credit unions, can take much longer to review applications and fund approved borrowers.

 

Assess the Available Business Funding Options

You may qualify for more than one type of loan to help fund your business. Some businesses choose to leverage more than one financing method to manage larger business expenses and pay for everyday costs. Some business funding