Running a business is a challenge no matter where you are, but in some states operating a company is relatively easier.
According to a new report by Nav, a financial services company for small businesses, examining the average business credit scores in each state might be one way to determine which states have the best atmosphere for business growth.
A post announcing results of the study on Nav.com’s official blog explains:
“While personal and business credit scores are both influenced by region, new data from Nav.com reveals other factors, like local policy climate, can impact business credit scores.”
Higher Business Credit Score Trends Signal Growth and Better Prospects
Unlike personal credit scores, business credit scores have a much narrower range, from only 0 to 100.
But as with personal credit scores, the higher the number the easier for business owners to obtain funds to buy equipment and hire people.
The study found Vermont (52), Nevada (49) and Iowa (49) have the best average business credit scores.
Other states that fare well include Alabama (49), Oregon (47), Utah (46), Alaska (46), Wisconsin (46), Maine (46) and Michigan (45).
Unfortunately most small business owners don’t even know their business credit score according to one survey and those who do may not be aware of the outside factors might have upon it.
States with Lowest Business Credit Scores
States like Nebraska (34), Montana (37) and West Virginia (38) on the other hand have the lowest business credit scores, the study finds.
South Dakota (39), Kansas (40), Oklahoma (40), New Mexico (40), Indiana (41), Tennessee (41) and South Carolina (41) are also lagging behind.
For the report, Nav examined Experian’s Intelliscore Plus business credit score from 15,500 of its small business customers. Each credit score was grouped together by state and Nav averaged together each business’ credit in each state.
Montpelier Photo via Shutterstock
This article, “Business Credit Scores Suggest These 10 States Are Best Positioned for Growth” was first published on Small Business Trends