Is a Business Credit Score of 58 Good? What It Means and How to Improve It

When it comes to business success, creditworthiness is a key factor. Whether you're seeking financing, negotiating vendor terms, or planning for long-term growth, your business credit score plays a vital role. But what if your score is 58? Is that considered good? And if not, how can you improve it? Let's break it down.

Understanding Business Credit Scores

Unlike personal credit scores, which typically range from 300 to 850, business credit scores operate on different scales, depending on the credit bureau. Here are the most common ones:

• Dun & Bradstreet PAYDEX Score (1-100): Measures a company’s payment performance.
• Experian Intelliscore (1-100): Assesses credit risk based on business and owner data.
• FICO Small Business Scoring Service (SBSS) (0-300): Used by lenders to evaluate risk.
• Equifax Business Credit Score (101-992): Gauges business credit risk.

Since business credit scores vary by model, a score of 58 means different things depending on the bureau. Generally, it falls in the medium-risk category, which may raise concerns for lenders and suppliers.

What a Business Credit Score of 58 Means

A business credit score of 58 suggests moderate credit risk. Here’s what that means in practical terms:

• Loan Approvals: You may face challenges securing financing or higher interest rates.
• Vendor Relationships: Suppliers might require prepayments or shorter terms.
• Business Growth: A lower score can limit your ability to expand and secure better financial opportunities.

Factors Affecting Your Business Credit Score

Several factors contribute to your business credit score, including:

1. Payment History: Late or missed payments negatively impact your score.
2. Credit Utilization: High credit usage can indicate financial stress.
3. Company Age: Newer businesses often have lower scores due to limited credit history.
4. Public Records: Bankruptcies, liens, or judgments lower credit scores.
5. Business Revenue & Financials: Strong financials improve your creditworthiness.

How to Improve a Business Credit Score of 58

If your business credit score is 58, don’t panic! Here are practical steps to improve it:

1. Pay Bills on Time

On-time payments are one of the most critical factors. Consider setting up automatic payments or reminders to ensure you never miss due dates.

2. Reduce Credit Utilization

Aim to keep your credit utilization below 30%. If possible, increase credit limits while keeping balances low.

3. Establish Strong Vendor Relationships

Work with vendors that report to credit bureaus. Timely payments to these vendors can help boost your score.

4. Monitor Your Credit Report

Regularly check your business credit reports from Dun & Bradstreet, Experian, and Equifax to identify errors or discrepancies that may be negatively affecting your score.

5. Build a Credit History

If your business is new, consider opening a business credit card or small trade account to build a solid credit history.

6. Manage Public Records

If your business has judgments or liens, work on resolving them as quickly as possible to improve your score.

7. Increase Business Revenue and Profitability

While it’s not a direct factor, strong financials improve lender confidence and can contribute to better credit terms.

The Bottom Line

A business credit score of 58 isn’t ideal, but it’s not the end of the world. With consistent effort, you can improve your score, unlock better financial opportunities, and build a stronger foundation for business growth. Focus on timely payments, responsible credit use, and strategic financial management, and you’ll be on your way to a healthier credit profile.