Definition

Listing what you owe suppliers and vendors for goods and services received. Staying on top of these bills builds trust and avoids late fees.

What to consider

  • Pay bills promptly to build a strong score.
  • Maintain low credit utilization.
  • Regularly review credit reports for errors.

Real world scenarios

  • A startup in Seattle regularly checks its credit score to secure favorable loan terms.
  • An entrepreneur works to improve the credit score by ensuring all bills are paid on time.
  • A small business monitors its score as part of its financial health review.

Related terms

Entrepreneurial Finances