What is Business Credit?

When a business issues another business credit, it is known as trade credit. Trade, or business, credit is the single largest source of lending in the world.

Information about trade credit transactions is gathered by business credit bureaus. The credit bureaus receive their information from businesses that issue other businesses credit. Unfortunately, a large percentage of businesses issuing business credit never report their information to the bureaus. This means a business can go for years without having anything listed with the credit bureaus.

The business credit bureaus use this compiled data about your company to generate a report and score (similar to personal credit). Business credit scores range from 0 to 100 with 75+ being considered excellent credit,

These bureaus also perform many checks on your business. If you are not in compliance with the credit market, it can cause red flags with credit bureaus and grantors.

Our online 4 Tier Business Financing System will help you to understand this process and help you prevent the common mistakes most business owners make in their attempts to establish and search for business credit.

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