A company’s business credit score is essential if the organization is looking to expand with the purchase of equipment, inventory, or other high cost items. In order to afford these large purchases, credit lines and loan approval are important to buy such things. Business credit score is the primary standard banks and alternative lenders decide which company’s qualify and at what rate.
Unlike personal credit, business credit score ranges from 0 to 100 and is linked to your business performance, generally your ability to pay credit and debts on time. In taking a look at the Nav Business Credit Snapshot by State, entrepreneurs can get a sense of where the top companies are in the country in terms of score. “For a small business owner, a state with a high business credit score is a good indicator of how easy it is to get funding, hire workers, and get through periods of low cash flow because of the available credit.”
This is only the second annual Business Credit Snapshot by State from Nav, but one that I believe will be very important as it grows. “Using the Experian Intelliscore Plus scale of 0 to 100,” only five states (when rounded) achieved at least a 50 score. These states include Hawaii (54.6), New Jersey (53), Washington (52.6), Illinois (50.0) and Oregon (49.7)
States with the lowest credit rating at 40 or lower (when rounded) included Alaska (38.7), Kansas (39.7), and Indiana (40.0).