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The Modern Business Credit Score

October 1, 2021
Credit score

Business credit scores have traditionally taken into account various factors. These factors include the payment history, how much access you have to credit, how much your credit is currently being used, how many tradelines you have open, as well as any liens or court judgements.

This information is reported to the credit bureaus from various creditors, including banks, suppliers, and credit card companies. 

The modern business credit score, however, is emerging as distinct from these traditional business credit scores. The modern business credit score starts with the information that the traditional credit score uses, and then enhances it with an entire new universe of data. Data that the business itself provides. This new data set is often referred to as “alternative data.”

Why would credit bureaus want to collect information from the business itself? Credit bureaus realize that there is a limited amount of  information that is conveyed by the traditional sources. While credit fundamentals like loan payment history and credit utilization remain essential, there are so many other factors to consider in order to build a more robust understanding of your credit profile.

This data can include the timeliness of rental payments, utility bills, and other types of payments that are traditionally not captured by credit bureaus. Bank transactions are also considered. As this is a new frontier in the world of credit, all sorts of data may be considered and the universe of alternative data has not yet been fully defined. 

When you work with Scorico to improve your business credit scores, you have the opportunity to connect 150+ apps. These integrations include CRM, social media, accounting, payroll, and marketing apps. This helps credit bureaus get a robust understanding of your credit profile, and as a result, your credit score could go up! 

It makes sense to be concerned about whether providing this extra data to credit bureaus could also negatively impact your scores. When providing this data through Scorico, you can rest assured that your credit scores NEVER go down.  In addition to potentially increasing your credit score, by integrating your favorite business apps with Scorico, you will access powerful actionable insights to enable better business decisions. You will be able to analyze the impact of events, like a new loan or new employee, on your business’s  financial performance. Additionally, you will get alerted about issues ahead of time, so that you can mitigate risks and avoid losses.

Has your business taken advantage of the opportunity to modernize and increase its credit score by providing alternative data? With Scorico, you have the opportunity to do this for free. Sign up to be a beta tester for Scorico today.

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