A business credit score, much like a personal credit score, is a way for lenders to view your likelihood of repayment. If you don't pay attention to your business's borrowing power, it could impact its growth.

According to the National Small Business Association (NSBA), 31 percent of companies experience financial obstructions and were not able to obtain the financing they needed, and Nav (a resource for small business tools, financing and credit profiles) says 23 percent don't understand why they're being turned down.

As a contractor, these financial obstacles could mean you are unable to cover expenses associated with seasonal downtime and could result in layoffs. The NSBA says 16 percent of businesses were forced to lay off workers because they couldn't secure a loan.

These financial hurdles could also lead to growth failure and your inability to access the cash flow needed to tackle larger long-term projects. Nav says 26 percent of businesses either didn't or couldn't expand and add workers because they couldn't obtain sufficient funds.
So if you're in need of a business credit score transformation, then you first need to understand how your business credit works. Doing this means that you're 41 percent more likely to be approved for a bank loan, according to Nav.

You can also increase your score by establishing trade accounts with suppliers, using business credit cards and staying current. This shows a potential lender that you have a good track record and you know how to use credit properly, which is vital to good business health.