Bad credit in businesses is a result of previous failures to make payments to creditors on time as agreed upon. These creditors can include banks from which they borrowed loans from, suppliers from where they bought inventory, utility companies which provide water, electricity etc. and/or others. These creditors all report payment histories and patterns to credit bureaus (Equifax, TransUnion, Experian etc.), which then assign the business a credit score between 0 and 100. When seeking to raise capital, businesses with poor credit scores have a comparably more difficult task convincing lenders than businesses with good credit.