Intro to "Commercial Credit Score"
Calculate a business' credit score and average delay payment shown publicly on the commercial credit bureau report
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The credit rating of a company shown on the commercial credit report is calculated using several criteria. These criteria are based on references given by suppliers, banks, financial institutions and the justice institution. The commercial credit score is affected by the length of the activities, the late payments, the number of references, and the number, importance, and delay of the derogatory items (non sufficient funds cheques, collection claims, legal suits, judgments and bankruptcies). Those factors are used to calculate the ratings, because they are good indicators of what would be a relationship with that specific company.
In most cases, a business must pay in less then 30 days after being billed, but it can be the case that the current period, i.e. the period where the bill is not running late, last 60 days, 90 days or even 120 days from the billing day, depending on the agreement between the business and its suppliers. The past due period are divided in 30 days. The first 30 days following the current period is considered as the first past due period, 31 to 60 days the second past due period and 61 to 90 days the third. The amounts counted in the 91 days late and more are often considered as lost money.
There are many different ratings coming from different commercial credit reports, but the criteria used to calculate the score on a credit file is universal. Check this calculator that evaluates what would be the commercial credit score and the average delay payment of a company shown publicly on the commercial credit report.
If you don't have the exact numbers to the questions, be approximate, the objective is to get a good idea of what the company shows publicly on the credit bureau.
How can you improve your ratings on the credit bureau?
- Keep your account in the current account and avoid as much as possible having amounts in the third past due period
- Avoid bounced checks and being put in collection
- Settle any legal suits
- Verify that the settled legal suits are not shown on the credit bureau anymore
- Keep an important amount of references, in preference good, reported to the credit bureau
Try the calculator Commercial Credit Score >
