A credit report gives a snapshot of an individual’s credit accounts, repayment history and various other financial dealings. The credit score is calculated based on the above factors. Creditors check the credit score before taking a decision to extend credit to their customers.

The credit score in the case of self-employed individuals also gives a picture of how well that individual manages the business. A business credit health report gives the lender an idea at glance as to how a business functions.

What Is a Business Credit Health Check?

It is very important for business owners to monitor their businesses and keep track of it regularly. Keeping track of loans already availed for buying equipment or expanding the business. A Business credit health check helps in evaluating financial health of a business. A Business credit health takes into account your past credit behaviour i.e. how you have performed on previous loans and how it affects your creditworthiness. 

Lenders submit the individual/self-employed credit activities to the credit bureaus who calculate the business credit score. Default in payments, high credit utilisation ratio on your business credit card, applying for multiple loans at a time will affect your credit score.

Importance of Business Credit Health Check

 It is highly important to do a regular business credit health check to analyse the promoter’s credit standing to be eligible for future credit. Moreover, it can help the business people find out where they stand with respect to their loans and plan for their future

Benefits of Business Credit Health Check

A business credit health check is more than getting business credit score and company credit report. It provides following benefits to the business owners.

·         Useful in developing strategies

·         Keep track of past and present loans

·         Helpful in analysing the business risks and controlling them

How to Improve Business Credit Health?

A good business credit score is not just a ticket to avail good loans from lenders. It also plays a major role in attracting new business and it is a proof of your credibility. Hence it is an utmost important to build a good business credit.

1.       Pay off the past dues: If you have failed to pay your past dues, it can affect your business credit. Clear the debts and maintain a low credit utilisation ratio to build a good business credit score.

2.       Pay your bills on time: This is the most important aspect of building good credit. Any late payment will be reported to the bureaus and it will remain for a long time on your credit report. Never miss a payment to get a good credit score.

3.       Monitor your Business credit report regularly: Any small error on your credit report could hurt the score. Hence, keep tabs on your credit frequently.

By following the points mentioned-above, you will be able to build a good business credit.


Business credit health is important for a number of reasons; keep track of your business, future loan eligibility, to attract new business etc. Monitor your business report regularly to improve your business and credibility as well.