Commercial Credit Scores, along with your PAYDEX® score, are an important measure of how your business is perceived as a credit risk. Specifically, the CCS is used to help potential lenders determine how likely a particular business is to be delinquent on its payments, meaning 90 days or more late, or to fail to pay creditors entirely, by either obtaining relief through legal means or ceasing operations.
In other words, it gives potential lenders a good idea of whether or not they should invest in you, so it’s important to know your options, and what to expect.
Commercial Credit Scores and Risk Class
Commercial Credit Scores range from 101 to 670, with 670 being the safest, and 101 being the highest likelihood of delinquency. Commercial Credit Scores are further divided into 1 to 5 risk classes, with 1 being the lowest risk class, and 5 being the highest. However, businesses that are Open Bankrupt, Discontinued at This Location, or Higher Risk, receive a default 0 score.
Commercial Credit Score Options
If you are concerned about your Commercial Credit Score, then your first step should be to obtain your Comprehensive Report. This will give you a complete assessment of your company’s financial stability. You will be able to determine where your business stands with respect to risk class, and able to take the necessary action.
If you are not happy with your Comprehensive Report, your best course of action will probably be to make sure all your bill payments are up to date, and to pay future bills promptly. Once you get your report back in shape, signing up for regular credit monitoring can make sure it stays that way, by alerting you to significant changes to your business credit report when they happen.