Updated: Jan 26

There is more to celebrate this week than just the upcoming New Year. Each January 1, your business is officially one year older. For many, this means increased access to capital.

In the corporate credit world, the age of your business is not measured by the date of its incorporation, but rather by the year in which it started. This translates to lower risk ratings with every December 31st your small business puts behind it. This could lower interest rates and improve access to funding, giving you much more reason to celebrate in the new year.

Your young business will officially be one year older at the end of this week, when every business with a Dun & Bradstreet profile will get one more year added to their history. If today your business is seven years old, on January 1 you will eight years old, no matter what month you opened your doors. Businesses who started two years ago will be now be fully two years old, and those who were two will now be three years old — considered by most lenders to have reached mid-maturity.

With major banks and creditors recently acknowledging a loosening of their stronghold on small business credit, there has never been a better time to get your business qualified to receive approvals, especially if you are a young business struggling to meet a lender’s tough criteria. While many are drearily taking down holiday decorations, few realize they could actually be in a better position to celebrate more AFTER the holidays are over.