So who provides credit to a small business? A relative will often help, but what about the bank in town or a supplier that is separated by a continent? How can someone who doesn’t know you and has never met you determine your creditworthiness?

These companies would do exactly what you would do: they go to a reputable credit risk management agency in order to get a credit report. Through a comprehensive small business credit report, these companies can learn about all aspects of your business including your financial condition, credit history, top management and other important information. All of this is determined by your small business credit score. This single number can tell a potential lender whether or not you are a good risk. Often this score is a number on a scale, but can include alphabet letters. This score allows banks, lenders, suppliers or other creditors to determine whether or not you are likely to pay your bills on time.