Posted on VBM, 3/15/17
It’s no secret that personal credit scores are a barometer of financial strength. The better your score, the easier (and cheaper) it is to get things like a mortgage or car loan. But, did you know small business owners have a separate business credit score (link is external) for their company? The two scores share commonalities, both impact a business owner’s ability to get financing, but they also have surprising differences. But either way, Vermont is a leader in both. Vermont finished first on the business credit score and second in personal.
While personal and business credit scores are both influenced by region, new data from Nav.com (link is external)reveals other factors, like local policy climate, can impact business credit scores. Nav used data from 15,500 of its small business customers to calculate the average business credit score for each state to find the top 10.
Business Credit Score 2017 Rankings
So, what is a solid business score? Unlike personal credit scores, the business credit score range is much smaller. Most models range from 0 to 100. The higher the score, the better. Each of the 10 states with the best business credit scores have scores of 45 or above — putting them in the low- to medium-risk range. Business owners with scores in this range will find it easier to qualify for loans (link is external) and trade credit with more favorable terms.
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