What are business credit scores?
Your business credit score is a number that shows how reliable you are as a borrower. It’s the same as a personal credit score but is based on the finances of a business rather than a person.
It’s important information for lenders, suppliers and other businesses you may be dealing with. Knowing your credit score can help you save money on interest rates or business loan fees or open up new opportunities to acquire the products and services your business needs.
Find out more on our full page about what a business credit score is and how it’s calculated.
How to check your business credit score for free
You can check your business credit rating for free with OnDeck’s Know Your Score tool. The service uses Equifax to pull information, data, and analytics to compile into a single, easy-to-read report that shows your business credit score at a glance. Credit reporting agencies advise that a good business credit score sits around 600 or above.
It’s easy to check your score, here’s how:
Step 1: Visit https://www.ondeck.com.au/know-your-score/ and hit “get your score now”.
Step 2: Input your business and personal details.
Step 3: Get your score instantaneously.
How to improve business credit score
Most lenders have a required minimum credit score to be eligible to take out loans. OnDeck requires a minimum credit score of 500, while many traditional loan providers ask for 700. Much like personal credit scores, having a low business credit score is a sign that your business is a credit risk and not likely to be approved for loans.
Once you know your business credit score, you may want to improve it. Here are some quick tips:
- Pay all invoices on time.
- Make sure the contact information for your business is up to date.
- Ensure that all financial information reported about the company is accurate.
- Try to build a good relationship with suppliers.
Following these steps will steadily increase your score as transactions are recorded in the company credit report.
Business credit reports
Your business credit report is a detailed view of all the information used to generate your score. It will show any overdue payments, loan amounts taken out and any defaults that could have impacted your score. It’s important to check for errors in this report as even a single mistake can impact your rating.
It’s also helpful to analyse patterns in these reports as you may be able to identify trends in your financing decisions and how they’ve impacted your credit score.
Business Credit History FAQ
How is a business credit score calculated?
Business credit scores are typically calculated using data from a credit bureau such as Equifax. This information includes financial transactions, payment history and public records associated with the business. The score is then presented as a single number that represents the overall riskiness of the company as a borrower.
Does business credit look at personal credit?
While calculated in much the same way, your business credit file is completely separate from your personal credit file. A business’s credit score is based on the financial health of the business as an organisation, not their owner or employees.
What do I need to check my business credit score?
All you need to be able to check how your businesses financial health appears to lenders is some personal information, and the following basic business information: Your ABN, time in business and revenue.
Are there any fees or charges associated with requesting my business credit score?
The Equifax business free credit score is provided to you free of charge. There are no hidden fees or charges. Using Know Your Score also leaves no footprint and won’t affect your score.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at May 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.