Updated: Jan 26

One of the driving forces that determine your ability to achieve business credit is the rating generated for your company by business credit bureaus. Contrary to what most frustrated business owners believe, there is no mystery formula, no secret algorithm, and no personal influence being weighed to produce this deciding factor. Your commercial credit rating is based upon information gathered about your business from trusted sources, and primary among those sources is you – as an active participant in your own business.

To better understand how you can impact your credit approvals, you first must participate in the ongoing management of your business credit report and the ratings that will be established.

There is a never-ending flow of data between D&B, for example, and various lenders, creditors, vendors, suppliers, government agencies and business owners to provide data into their system. This data will have a positive or negative impact on your various scores, overall composite credit appraisal, and your actual D&B rating. Be that what it may, there are ways that you can impact your rating simply by providing “real-time” information about your company to D&B. The lack of viable information is the main reason why a company will lose their rating or have it downgraded to the point where they can no longer achieve credit.

D&B rates businesses in one of two ways, either by a company’s net worth or its employee count, combined with an overall composite credit appraisal.