Thriday Launches Free Business Credit Score Check

February 20, 2024
minutes to read
Michael Nuciforo
Table of Contents

Running a successful small business goes beyond profit margins; it's about managing financial health. One crucial metric is your business credit score. Today, I'm excited to introduce Thriday's latest game-changing feature - the Free Business Credit Score Check. In this blog, we'll delve into the importance of this often-overlooked number and why Thriday stands out in helping you unlock its secrets.

What is a Business Credit Score?  

Your business credit score is the financial heartbeat of your company. Much like a personal credit score, it reflects your business's creditworthiness. Lenders use your business credit score to evaluate how creditworthy your enterprise is. The higher your score, the more favourable terms and conditions you can secure for loans or credit. It's not just a number; it reflects your business's financial integrity and reliability. According to recent studies, businesses with higher credit scores are 20% more likely to secure favourable loan terms, underscoring its significance in financial dealings.  

Business Credit Score
What's your Business Credit Score?

How is a Business Credit Score Calculated?  

Understanding the mechanics behind your business credit score is important. Multiple factors come into play, each with a different degree of significance. While payment history is a significant contributor, credit utilisation, public records, repayment history and other financial behaviours also play a role. Notably, payment punctuality holds the biggest weight, contributing to approximately 35% of the score. By comprehending this formula, you gain actionable insights into areas of improvement.  

How to Check Your Business Credit Score for Free?  

The road to financial improvement begins with tracking, and Thriday makes it easy for you to do that. Regularly checking your business credit score is essential, yet many entrepreneurs fail to pay regular attention to it. Thriday's free service offers a seamless experience, allowing you to promptly monitor changes and address issues. Stay in control of your business's financial destiny with Thriday's user-friendly platform.  

Why Thriday is the Best Free Business Credit Score App

Thriday is a popular tool for small businesses, as besides providing your business credit score, it includes a range of features designed to eliminate the time business owners waste on financial admin. Thriday's key features include bill manager – which automates bill payments to ensure your suppliers are paid on time. Thriday also has BAS and tax lodgment, ensuring you keep up with your taxes when they are due. Finally, Thriday generates detailed accounting reports, ensuring you know exactly how your business performs to avoid cash flow shortfalls. These features make your life easier and can help you maintain a good credit rating.  

What is a Good Business Credit Score?  

With services like CreditorWatch, business credit scores are ranked A to F and 0 to 800 in Australia, and anything above 700 is considered excellent. Businesses in this bracket enjoy preferential terms from lenders. Thriday helps you understand your current score and provides insights on maintaining or reaching that coveted fantastic range, ensuring your business stands on solid financial ground.  

How to Improve Your Business Credit Score?

Thriday not only diagnoses your business credit health but also helps you understand the reasons behind it. To support your business, Thriday will highlight where you rank currently and what you need to do to improve your score, providing a roadmap to boost your creditworthiness.  

To improve your score, the basics matter. Timely payments play a pivotal role, so ensure you consistently meet all financial obligations, from vendor payments to loans. Strategically manage your credit utilisation by keeping balances low relative to your available credit. Establishing a diverse credit mix, incorporating instalment and revolving credit, can positively impact your score. Additionally, foster positive relationships with creditors and suppliers, as their positive reports can enhance your creditworthiness.

Thriday offers valuable resources and tools to guide your improvement efforts, providing personalised insights and actionable steps to boost your business credit score over time.

Thriday customer
Small business owner and Thriday customer

What Happens If You Have a Low Business Credit Score?  

A low credit score can be particularly detrimental to a small business, impacting its financial health and growth prospects. One immediate consequence is limited access to financing, as lenders often use credit scores to evaluate the risk associated with providing loans or lines of credit. A low credit score may result in higher interest rates and less favourable loan terms, making it more expensive for the business to borrow capital. Additionally, securing vendor partnerships and negotiating good terms may become challenging, as suppliers often review credit scores before establishing business relationships. The inability to access credit can hinder small businesses' ability to invest in essential resources, expand operations, or navigate unexpected financial challenges.

Furthermore, a low credit score can affect the business owner's personal liability, as they may need to guarantee loans or face difficulties obtaining business credit cards personally. Overall, the impact of a low credit score on a small business extends beyond immediate financial constraints, influencing its capacity for growth, stability, and resilience in a competitive market.  

Does Your Personal Credit Score Impact Your Business Credit Score?  

Yes, there can be a connection between your personal and business credit scores. While they are distinct entities, many lenders consider the personal credit history of business owners, especially small businesses or startups. Your personal credit score can influence the terms and conditions of business loans, lines of credit, and even vendor partnerships. A solid personal credit score often translates to increased trust from lenders, potentially resulting in better terms for your business. Conversely, a low personal credit score may raise concerns about financial responsibility, impacting the business's creditworthiness. It underscores the importance of maintaining a healthy personal credit profile, as it can indirectly affect your business's ability to secure financing and thrive in the competitive market.  

Thriday's Partnership with CreditorWatch  

Thriday has established an alliance with CreditorWatch, a leading credit reporting agency, to deliver precise and reliable business credit scores to its clients. This collaboration ensures Thriday users access the most accurate and up-to-date credit information, empowering them to make well-informed financial decisions. Leveraging CreditorWatch's comprehensive database and sophisticated credit scoring algorithms, Thriday can present a detailed and nuanced analysis of a business's creditworthiness. This collaboration enhances credit reporting accuracy and reinforces Thriday's commitment to transparency and reliability in providing valuable insights to businesses seeking to understand and optimise their credit scores. The relationship between Thriday and CreditorWatch exemplifies a dedication to offering cutting-edge solutions for businesses navigating the complexities of financial management.  

Business Credit Score FAQs  

Q: What is a business credit score, and why does it matter?

A business credit score is a numerical representation of your company's creditworthiness. Lenders use it to assess the risk of extending credit to your business. A higher score can lead to better loan terms and increased borrowing power, making it crucial for financial health and growth.  

Q: How does a business credit score differ from a personal one?

While similar, a business credit score focuses on your company's credit history, payment behaviours, and financial responsibility. It influences your business's ability to secure financing, favourable terms, and vendor partnerships, distinct from personal credit scores.  

Q: How often should I check my business credit score?

Regular monitoring is crucial. Thriday's recommendation is to check it monthly or quarterly, especially during periods of financial changes or before applying for credit. This way, you can ensure your score is strong before obtaining a loan.

Q: How does Thriday's Free Business Credit Score Check differ from other services?

Thriday stands out with its user-friendly interface, comprehensive reporting, and insightful analysis. Unlike other services, Thriday goes beyond providing a number with its helpful features that can help you improve your score.  

Q: Can I improve my business credit score, and how?

Absolutely. Thriday provides resources and tools to help you strategically improve your credit score. Key factors include timely payments, responsible debt management, and a positive credit history.  

Q: How does a low business credit score impact loan approvals?

A low business credit score may lead to higher interest rates and less favourable loan terms. It can also limit your access to credit, making it challenging to secure financing for business growth or operational needs.  

Q7: Does my credit score influence my business credit score?

Yes, there's a connection. Especially for small businesses, lenders may consider the personal credit history of business owners. Maintaining a healthy personal credit score indirectly contributes to a favourable business credit profile.  

Q: What role do the major credit bureaus play in business credit scores?

Thriday collaborates with major credit bureaus, including Experian, Equifax, and TransUnion, to ensure accurate reporting. These bureaus play a pivotal role in calculating business credit scores and contribute to the reliability of the information.  

Q: How does Thriday ensure the accuracy of business credit scores?

Thriday has partnered with CreditorWatch, a leading credit reporting agency, to obtain accurate and reliable business credit scores. This collaboration enhances the precision of credit reporting, offering clients trustworthy insights.  

Q: Is Thriday's Free Business Credit Score Check free?

Thriday is committed to transparency, and you can access your Free Business Credit Score Check for the first month you sign up to Thriday - no questions asked. To see your Business Credit Score on an ongoing basis, you must subscribe to a monthly or annual plan, which starts at only $29.95 per month. It's a valuable resource for businesses looking to understand and optimise their creditworthiness without any cost.

Key Takeaways

Thriday's introduction of the Free Business Credit Score Check empowers small business owners with the insights they need to navigate their financial journey. Remember, your business credit score is more than a number; it reflects your financial health and resilience. Thriday's user-friendly interface, comprehensive reporting, and insightful analysis go beyond the conventional credit score check, offering a holistic view that empowers you to make informed decisions. As you begin running your business with Thriday, seize the opportunity to understand your current credit standing and actively shape a future of robust creditworthiness.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360  AFSL 241167 (Regional Australia Bank).  Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you.

Why waste time on financial admin when Thriday can do it for you?

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