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IMPORTANT NOTICE:  NEW PPP AND EIDL LOANS WILL SOON BE AVAILABLE.  Make sure your company qualifies by updating the corporate details in your D&B report, disputing slow payments, and adding positive payment history.

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What does January 1st mean to your business credit?

Happy Holidays everyone!

Christmas is almost here, and New Years is right around the corner. For many of us, celebrating January 1st will involve watching the ball drop from Times Square or welcoming a new year with friends and family.

But deep inside D&B's computer, hidden far away from prying eyes, an algorithm will be hard at work, updating the credit reports of more than 200 million businesses to show they are now one year older, and that can make a world of difference for small business owners everywhere.


Less than 1 year old

You are now considered to have been in business for one year. Even if you just recently set up shop, you have just crossed the threshold to being a year old. If you already have full scores and ratings in your D&B file, those scores could achieve a slight boost, making you more qualified for basic funding opportunities not previously available. The SBA has wobbled a few times, but they still say 30% of new businesses will fail in their first year.

Two years old

You are now considered to be three years old and what is often referred to as "aged". For many lenders and creditors, this means you have passed some tough tests and are a survivor. You are now eligible for even higher levels of business funding. If you have a D&B file, you will likely be contacted by companies who want your business. According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months.

Four years old

You are now considered to be a five year old business, and that will likely earn you a slight boost in your credit scores and ratings. If D&B has previously verified your business and you have payment history in your file, your risk ratings will indicate a higher creditworthiness and lower risk to your suppliers. D&B's data shows that only 50% of small businesses can hold on to survive their first 5 years.

Nine years old

Just like a business transitioning from four to five years old, climbing from the nine years old to ten will provide you with a significant boost to your scores and ratings, primarily because, by now, most of your worst mistakes are behind you. You have survived the test of time. 96% of small businesses don't make it to the ten year mark. "If your company is a decade or more old, then congratulations, you’re one of the 4%!" - INC Money, 8/12/2015

Fourteen or more years old

You're a champ! If you have reached this level of business ownership and your head is still above water, you really know what you're doing and have proven you are a survivor. By now, you should have a firm grasp on your business credit and be able to achieve anything you want, and usually can do so without having to provide a personal guaranty. Your scores and ratings should prove your strength and consistency.

But even if your business is in those in-between years, you are likely to see a slight boost to your ratings simply because your business has added another year to its history. That's why I always recommend that business owners add payment history and make any necessary updates to their D&B data now, before that ball drops and a new year kicks in.

If you have questions about what January 1st is going to mean to your business, or would like to review your current business credit report, call 800-918-7505 (ext 2) or request a free consultation by clicking here:

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Starpoint Credit Solutions LLC
11504 Joy Street   |   Austin, TX 78748
Phone / Fax  (800) 918-7505
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