Business Credit Score
A business credit score is the credit score of your business, very similar to a personal score...with some key differences. The business credit score can be calculated by three agencies (Dun and Bradstreet, Equifax, and Experian) and can vary quite a bit from one to the next, as there is no standard system to calculate it.
As a theoretical small business owner, you are not entitled to a free copy of said report every year like you are with a personal report.
The score itself will range from 0 to 100. Generally, it is determined by just the business accounts, although if you're a small business owner and don't have much business credit yet, you might be able to use your personal credit as well.
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Finance: What is a Credit Limit?39 Views
Finance, a la shmoop. What is a credit limit? Alright people well simply put the
maximum amount you get to charge or use on a loan or credit account, that's a [Credit limit definition written on a 100 dollar bill]
credit limit. So yeah it's that thing that keeps toddler Joey from ordering
two hundred thousand dollars worth of Snickers bars. [Toddler looking at the snickers bar]
If you accidentally you know leave out your Amex. (Illustrative example time) If you have a ten thousand
dollar line of credit or credit card you can't spend $20,000 on a trip to Vegas,
sorry. You might be able to go on a smaller trip to Atlantic City but once [Picture of Atlantic City]
you hit that 10 grand well the party's over until you pay some of that money [$10,000 flashing in red]
back, and by the way taking that smaller trip and then putting everything on red [Chips landing on a roulette table]
22 in hopes of funding your next trip to Vegas? Probably not the soundest
financial planning... sorry, let's keep it real. [Guy putting on a serious face]
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