Credit agencies calculate Business Credit scores in order to assess a company’s creditworthiness. The main question that a small business lender wants to know is whether or not the borrower will be able to repay the money that has been lent.

Credit scores take into account outstanding balances on credit cards, payment history (including amounts paid and the timeliness of those payments), credit utilizations and other factors. Naturally, the better your credit score, the higher the likelihood...