Understanding Credote Score

Your Credote Score reflects your business's payment reliability and creditworthiness. Learn how it's calculated, what influences it, and proven strategies to build a strong payment reputation.

Credote Score Ranges

0-24
Very Poor
25-39
Poor
40-54
Fair
55-69
OK
70-84
Good
85-100
Excellent

What is Credote Score?

Credote Score is a comprehensive business credit rating that measures your company's payment reliability and creditworthiness. Unlike traditional credit scores that focus on borrowing, Credote Score evaluates how well you pay your suppliers, vendors, and service providers.

Key Principles

What It Measures

  • Payment timeliness and reliability
  • Business verification and legitimacy
  • Financial transparency and integration
  • Commercial activity and engagement

What It Doesn't Measure

  • Personal credit or guarantees
  • Bank loan or financing history
  • Revenue or profitability
  • Industry or market conditions

How Credote Score is Calculated

Your Credote Score is built from multiple factors that demonstrate your business's reliability and transparency. Here's what influences your score:

Business Foundation (Base Score)

Every business starts with a foundation score based on verification and legitimacy:

Verified Businesses

  • • Start with 60 points
  • • Confirmed business registration
  • • Valid contact information
  • • Legitimate business address

Unverified Businesses

  • • Start with 50 points
  • • Basic business information
  • • Opportunity to verify later
  • • Can improve through activity

Payment History (Biggest Impact)

Your track record of paying suppliers and vendors on time:

Positive Factors

  • • Perfect payment history: +15 points
  • • Consistent on-time payments
  • • Quick resolution of disputes
  • • Good relationships with vendors

Negative Factors

  • • Each overdue payment: -10 points
  • • Resolved defaults: -15 points
  • • Unpaid defaults: -25 points
  • • Pattern of late payments

Business Enhancements

Additional factors that demonstrate transparency and professionalism:

Verification Bonuses

  • • Business verification: +5 points
  • • Bank account integration: +5 points
  • • Accounting system integration: +5 points
  • • Active Credote platform use: +3-5 points

Activity Bonuses

  • • High invoice volume: +10 points
  • • Regular commercial activity
  • • Established trading relationships
  • • Consistent business operations

Time and Activity Factors

How business age and activity levels affect your score:

New Businesses

  • • Neutral treatment (no penalties)
  • • Start in "OK" tier (55-69 points)
  • • Build score through good practices
  • • No inactivity penalties initially

Established Businesses

  • • Expected to maintain activity
  • • Inactivity penalty: -10 points
  • • Higher expectations for performance
  • • More opportunities for bonuses

When Your Credote Score Improves

Your Credote Score can improve through consistent good practices and business growth. Here are the key ways to boost your rating:

Immediate Improvements

Verification Steps

  • Complete business verification (+5 points)
  • Connect your bank account (+5 points)
  • Integrate accounting software (+5 points)
  • Use Credote platform actively (+3-5 points)

Quick Wins

  • Pay all current invoices on time
  • Resolve any outstanding disputes
  • Update business information
  • Maintain regular business activity

Long-term Score Building

Payment Excellence

  • Maintain 100% on-time payment rate
  • Build consistent payment history
  • Establish long-term vendor relationships
  • Increase invoice volume and frequency

Business Growth

  • Scale up commercial operations
  • Diversify supplier relationships
  • Demonstrate business stability
  • Engage with the business community

When Your Credote Score Goes Down

Understanding what can hurt your score helps you avoid common pitfalls and maintain a strong payment reputation:

Payment Issues (Major Impact)

Late Payments

  • Each overdue invoice: -10 points
  • Pattern of late payments
  • Ignoring payment terms
  • Poor communication with vendors

Serious Defaults

  • Resolved defaults: -15 points each
  • Unpaid defaults: -25 points each
  • Public registry listings
  • Legal action for collection

Business Inactivity

What Counts as Inactive

  • No commercial activity for 6+ months
  • No invoice processing or payments
  • Dormant business operations
  • Unresponsive to communications

Impact

  • Inactivity penalty: -10 points
  • Only applies to established businesses
  • Can be reversed by resuming activity
  • New businesses are exempt initially

How to Be a Good Payer

Building and maintaining an excellent Credote Score requires consistent good payment practices. Here's your roadmap to payment excellence:

Payment Best Practices

Timing Excellence

  • Pay invoices before the due date
  • Set up automated payment reminders
  • Process payments weekly, not monthly
  • Maintain consistent payment schedules

Communication Excellence

  • Respond to vendor inquiries promptly
  • Communicate payment delays in advance
  • Resolve disputes quickly and fairly
  • Maintain professional relationships

System Setup for Success

Financial Organization

  • Use accounting software for tracking
  • Set up automated payment workflows
  • Maintain adequate cash flow buffers
  • Review and approve invoices quickly

Relationship Management

  • Negotiate realistic payment terms
  • Build long-term vendor partnerships
  • Provide clear payment contact information
  • Honor all contractual agreements

Handling Payment Challenges

When Cash Flow is Tight

  • Contact vendors before missing payments
  • Negotiate payment plans or extensions
  • Prioritize critical supplier payments
  • Provide realistic timelines for resolution

Dispute Resolution

  • Address disputes promptly and professionally
  • Provide documentation to support your position
  • Work toward mutually acceptable solutions
  • Pay undisputed portions while resolving issues

Check Your Credote Score Today

See how your business's payment reputation looks to potential partners and suppliers. Get your Credote Score and detailed payment history report in seconds.

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Key Takeaways

Remember This

  • New businesses start with neutral "OK" ratings
  • Payment history has the biggest impact on your score
  • Verification and transparency boost your rating
  • Consistent good practices compound over time

Action Steps

  • Check your current Credote Score
  • Complete business verification if needed
  • Set up systems for on-time payments
  • Monitor your score regularly for changes