Small-business credit scores become available

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FICO, one of the major bureaus that provides credit scores, will be partnering with credit management companies to make small-business scores available to founders. These are usually reserved for the eyes of loan officers, though Dun & Bradstreet's Paydex small-business credit score is already available. Certain online services will monitor scores from one or two of the three major credit bureaus for business owners, along with their personal credit.

What does this mean for small-business owners? According to CNN Money, those with more than a few employees should know their business credit score, as this can help them know what to expect when they pursue business financing. Very small businesses often get financing on the basis of the owner's personal credit score, which is information available to every consumer. However, past a certain size, small-business owners may wish to know the score of their company itself.

Of course, how important a credit score is will vary with circumstances and depend on which lender a founder chooses to work with. However, it is usually a good guideline to consider when seeking business financing - and knowing about any problems can help a small-business owner begin to resolve them.

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