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To determine the credit worthiness of a small business, lenders can obtain a business credit score through business credit reporting agencies, like Experian. With this information and a copy of the small business credit report, the company risk can be assessed. Small business owners should review their business credit history regularly to make sure all information is accurate when they go to apply for additional credit.
It is not only banks that are reviewing the credit information for a business. Suppliers and subcontractors also have an interest in the financial viability of a company before agreeing to do business. After all, a supplier does not want to provide goods before payment if a small business makes it a habit to pay invoices seriously late.