I walked into the bank feeling confident about getting a loan to expand my business. I had my plan, financials, and a solid pitch ready. But the loan officer shook her head — denied. The problem? My business credit score.
I didn’t even know I had one. A business credit score shows lenders, vendors, and insurers how dependable your business is. Factors like late vendor payments and limited credit activity were pulling my score down. That rejection was a wake-up call.
A business credit score can affect your chances of getting a loan, supplier terms, or partnerships. In this guide, I’ll explain what a business credit score is, why it matters, and how you can improve it.
Table of Contents
- What is a business credit score?
- What is a good business credit score?
- Why do business credit scores matter?
- How to Check a Business’s Credit Score
- Tips for Managing and Improving Your Business Credit Score
What is a business credit score?
A business credit score tells lenders, vendors, and insurers how trustworthy your business is when it comes to paying debts on time. I like to think of it as the financial reputation for your company.
Business credit scores don’t follow a single model. Each reporting agency uses its own system, but they all rely on a few key factors to assess risk.
Key Factors That Affect Your Business Credit Score
- Payment history. Late or missed payments to vendors, creditors, and suppliers can lower your score significantly. Consistent on-time payments help build trust.
- Company age and financial history. Older businesses with a long financial track record tend to have higher scores.
- Tradelines and credit use. I found that keeping tradelines active and balances low reassures lenders that your business can manage debt responsibly.
- Industry risk. Businesses in industries with high failure rates are seen as riskier, which can impact their scores.
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The 4 Major Business Credit Scoring Agencies
Here are the four agencies to keep an eye on to know your business’s credit score:
- Dun & Bradstreet (D&B). They created the Paydex Score (1 to 100) that focuses on payment history with vendors. A score above 80 indicates low risk.
- Experian. Scores businesses on a scale of 1 to 100. Their reports also include data on payment trends, public records, and risk factors.
- Equifax. Provides three key scores: Payment Index (0 to 100), Credit Risk Score, and Business Failure Score. These scores give lenders a detailed view of payment reliability and financial stability.
- FICO Small Business Scoring Service (SBSS). Used by the Small Business Administration (SBA) for loan approval. Scores range from 0 to 300, combining both business and personal credit history. Most SBA loans require a minimum score of 155.
A 2024 FDIC study found that 58% of lenders review business credit reports before making lending decisions. Tracking your score helps you stay prepared and better positioned for favorable financing options.
What is a good business credit score?
Each bureau uses a different system to calculate business credit scores. Knowing what counts as a good score depends on the bureau you’re dealing with. Below are general benchmarks that indicate low, moderate, or high risk.
Score Ranges by Major Bureaus
Dun & Bradstreet Paydex Score
- 80+ signals low risk with consistent, on-time vendor payments.
- 50-79 indicates moderate risk with occasional late payments.
- Below 50 shows high risk due to frequent late or missed payments.
Equifax Payment Index
- 90+ represents low risk and timely payment history.
- Below 80 points to higher risk from delayed payments or high debt levels.
FICO SBSS
- 155+ is required for SBA loan eligibility, although higher scores improve approval odds and loan terms.
Lenders often look at these scores to understand how dependable your business is when it comes to paying off debts. Higher scores can improve loan terms, lower interest rates, and extend payment periods with suppliers. Low scores, on the other hand, may lead to higher borrowing costs or loan denials.
If you have a low business credit score or you’re just starting out, read about the best unsecured business loans.
Why do business credit scores matter?
A business credit score impacts several key aspects of your company’s operations. It can influence loan approvals, insurance premiums, and supplier payment terms. A strong credit score has helped me secure supplier payment terms that gave my business more breathing room for cash flow.
Other key benefits of a good business credit score include:
- Access to better loan terms and higher approval chances. Lenders tend to approve businesses with strong credit more quickly and offer lower interest rates.
- Lower business insurance premiums. Insurance providers use credit scores to assess financial stability. A high score can reduce premiums, saving money over time.
- Favorable supplier payment terms. Suppliers may offer extended payment terms (e.g., net 60 or 90 days) to businesses with higher scores, improving cash flow.
- Higher credibility with partners. Business partners and investors may review your credit score as part of their decision-making process. A strong score demonstrates financial reliability.
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How to Check a Business’s Credit Score
After that first experience in the bank, keeping track of my business credit score has saved me from further unpleasant surprises. I’ve learned that even a small error in a report can derail financing or negotiation plans. Here’s my personal process for checking and monitoring my business credit score.
Step 1: Gather your business details.
Having all the necessary information upfront makes the process faster and smoother. I’ve had applications delayed before simply because I couldn’t find the right documentation. Here’s what I always keep on hand:
- Employer Identification Number (EIN)
- DUNS Number (if using Dun & Bradstreet)
- Business registration details (official name, address, and incorporation documents)
These details help verify your business identity and ensure the credit bureaus can pull accurate data.
Step 2: Choose your preferred bureau.
Different bureaus offer various services, and their pricing and report formats vary. I’ve explored all the major bureaus, and here’s what you can expect:
Dun & Bradstreet
D&B focuses heavily on payment history through its Paydex Score. I first registered for a DUNS Number, which gave me access to a free, basic report. When I wanted more details, I subscribed to their paid service, starting at $15/month.
- I logged in to the Dun & Bradstreet website.
- I searched for my business using my DUNS Number or name.
- I viewed my report summary and decided if I needed to upgrade for a deeper look at risk scores and payment trends.
I’ve found the paid report valuable when applying for larger loans or vendor contracts.
Experian
Experian charges $49.95 for a single report, or $199/year for unlimited access. I opted for the annual plan since I prefer monitoring my score regularly.
- I created an account on Experian’s business portal.
- I purchased a report and reviewed key metrics like payment history, risk factors, and financial stability ratings.
- I downloaded a copy to reference later.
Experian’s data helped me understand long-term payment trends that could affect vendor negotiations.
Equifax
Equifax provides multiple scores, including a Payment Index and Credit Risk Score. Accessing their report required me to show proof of a recent business credit application.
- I contacted Equifax and requested a business credit report.
- I sent documentation from a recent credit application (e.g., loan or credit card request).
- Once my information was processed, Equifax emailed me the report.
I appreciated that this service was free, but it took extra time to gather and submit the required documents.
FICO Small Business Scoring Service (SBSS)
The FICO SBSS score combines business and personal credit data and is crucial for SBA loans. Reports aren’t publicly available, so I worked directly with my lender to understand my score.
- I contacted the lender handling my SBA loan application.
- They explained how my FICO SBSS score factored into their decision-making.
- I cross-checked my business credit reports from D&B, Experian, and Equifax, since these agencies contribute to the FICO score.
This extra step gave me confidence that both my business and personal credit were aligned with loan requirements.
Step 3: Monitor regularly and correct errors.
Credit reports can change frequently as new payments or inquiries are added. I’ve made it a habit to check for updates regularly to catch any errors before they become a problem.
- I learned that if I don’t check my score regularly, errors like missing payment records could slip through and cost me during a loan application. Now, I set quarterly reminders, and they’ve saved me from surprises.
- If I spot errors — like missing payments or incorrect account details — I contact the reporting agency.
Most agencies ask for proof, like bank statements or invoices, to update the report. Staying on top of these changes has helped me avoid issues during loan applications and vendor negotiations.
Monitoring my business credit has paid off with lower interest rates and better supplier terms. It’s an easy routine that keeps my financial reputation strong.
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Tips for Managing and Improving Your Business Credit Score
Small but consistent actions can raise your business credit score and keep it strong over time. These tips help build trust with lenders, vendors, and partners.
1. Formalize your business.
Establishing your business as a legal entity gives it credibility. Register your business as an LLC or corporation.
- Apply for an EIN (Employer Identification Number) through the IRS for tax and credit purposes.
- Register for a DUNS number with Dun & Bradstreet to create a business credit profile.
This separation from personal credit allows your business to stand on its own and opens the door to more financing options.
2. Pay your creditors early or on time.
This might seem obvious, but I learned the hard way how much late payments can hurt your score. When even a single late vendor payment showed up on my report, it led to less favorable loan terms.
To stay on top of payments, I set up automatic payments and calendar reminders. If cash flow allows, I pay off debts early, which signals strong financial health to lenders. Making timely payments has given me better loan offers and even helped me negotiate payment extensions when needed.
3. Keep credit use low and open tradelines.
At one point, I noticed my score dipped despite paying bills on time. It turned out my credit utilization — how much credit I was using — was too high. Lowering this percentage made an immediate difference.
Here’s what worked:
- I aimed to use less than 30% of my available credit.
- I opened tradelines with reliable vendors who report to credit bureaus, which added more positive credit history to my profile.
- I avoided maxing out business credit cards or lines of credit, since that can signal financial trouble.
4. Keep business and personal finances separate.
When I started out, I mixed personal and business expenses without realizing the long-term impact. It created headaches during tax season and made it harder to track my business’s financial health.
Now, I keep everything separate. I remember how chaotic tax season used to be when I mixed expenses — sorting through hundreds of receipts was a nightmare. Since switching to dedicated business accounts, I’ve saved hours each year.
This separation has simplified bookkeeping and protected both my business and personal credit scores.
These habits have made managing my business credit much more predictable. Over time, I’ve seen how lenders and vendors trust businesses with solid financial practices. The effort you put in now can set you up for more opportunities in the future.
Knowing Your Number
When I first learned about business credit scores, I didn’t realize how much they impacted key opportunities. That loan rejection was a wake-up call. Since improving my score, I’ve secured better loan rates, supplier terms, and smoother negotiations.
Managing your credit doesn’t need to be complicated. Regular monitoring, timely payments, and low credit use can prevent setbacks. These habits show lenders and partners that your business is reliable and financially stable.
Don’t wait for a problem to take action. Start by checking your credit report and making small improvements. Those efforts can open the door to better growth opportunities down the road.
Free Business Startup Kit
9 templates to help you brainstorm a business name, develop your business plan, and pitch your idea to investors.
- Business Name Brainstorming Workbook
- Business Plan Template
- Business Startup Cost Calculator
- And more!
Download Free
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