Understanding Business Credit Scores
Many business owners know their personal credit score but have no idea whether their business has a credit score—or what that score is. Business credit is separate from personal credit, and it plays a major role in your ability to get funding, negotiate with vendors, and even win contracts.
This guide explains how business credit works, what factors affect your score, how to check and build your business credit, and how it impacts your financing options. Whether you're starting from scratch or trying to improve an existing score, understanding business credit puts you in control.
Strong business credit can mean the difference between getting approved or denied, and between paying 8% interest or 25%.
Business Credit vs Personal Credit
Your personal credit score (FICO) reflects your individual borrowing history. Business credit is completely separate—it tracks how your business handles its financial obligations.
| Factor | Personal Credit | Business Credit |
|---|---|---|
| Score Range | 300-850 (FICO) | 0-100 (most bureaus) |
| Who Reports | Banks, credit cards, lenders | Vendors, suppliers, some lenders |
| Privacy | Protected by law | Public information |
| SSN Required | Yes | No (uses EIN) |
| Build Time | Years of history | Can start in 30-90 days |
| Main Bureaus | Equifax, Experian, TransUnion | Dun & Bradstreet, Experian Business, Equifax Business |
Important: Most small business lenders look at both personal and business credit. Even if your business credit is excellent, poor personal credit can still affect your options.
The Major Business Credit Bureaus
Dun & Bradstreet (D&B)
The largest and most widely used business credit bureau. Issues the PAYDEX score (0-100), which measures how promptly you pay your bills compared to terms.
PAYDEX Score: 80+ is considered good. 80 means you pay on time. Higher scores mean you pay early.
Experian Business
Provides the Intelliscore Plus (1-100), which predicts the likelihood of serious delinquency. Also considers factors like business size, industry risk, and legal filings.
Intelliscore Plus: 76-100 is low risk. 51-75 is medium-low risk. Below 50 indicates higher risk.
Equifax Business
Offers multiple scores including the Business Credit Risk Score (101-992) and Payment Index (0-100). Draws from both trade credit data and public records.
Credit Risk Score: Higher is better. 550+ is generally considered low to medium risk.
What Affects Your Business Credit Score
Business credit scores are calculated differently than personal scores, but the core principle is similar: they measure how reliably you pay your bills.
Payment History
The biggest factor. Do you pay on time, early, or late? Payments to vendors, suppliers, and lenders all count when reported.
Credit Utilization
How much of your available credit are you using? Lower utilization is better. Try to stay below 30% of limits.
Credit History Length
How long have you had credit accounts? Longer histories demonstrate track record. This builds over time.
Company Size & Revenue
Larger, more established companies are seen as lower risk. Time in business and number of employees matter.
Public Records
Bankruptcies, liens, judgments, and collections severely damage your score. These can stay on record for years.
Industry Risk
Some industries have higher failure rates. Restaurants, construction, and retail may face stricter evaluation.
How to Build Business Credit
Building business credit takes intentional effort. Unlike personal credit that builds automatically, you need to set up accounts that report to business bureaus.
Incorporate and Get an EIN
Form an LLC or corporation to separate your business identity. Get an Employer Identification Number (EIN) from the IRS—this is your business's "social security number."
Register with Dun & Bradstreet
Get your free D-U-N-S Number at dnb.com. This unique 9-digit identifier is required for many government contracts and business credit accounts.
Open Trade Accounts That Report
Not all vendors report to business credit bureaus. Prioritize suppliers like Grainger, Uline, Quill, and office supply companies that do report. Start with 3-5 accounts.
Get a Business Credit Card
Business credit cards that report to business bureaus (not just personal bureaus) help build your profile. Use it regularly and pay in full or on time.
Pay Early or On Time—Always
Payment history is the biggest factor. Set up autopay or calendar reminders. If possible, pay early to boost your PAYDEX score above 80.
Monitor Your Reports
Check your business credit reports regularly. Look for errors, outdated information, or accounts you don't recognize. Dispute anything incorrect.
How to Check Your Business Credit
Unlike personal credit, business credit reports aren't free. Here's how to access them:
Dun & Bradstreet
dnb.com - Free D-U-N-S lookup, paid full reports
Experian Business
experian.com/business - Single reports or monitoring plans
Equifax Business
equifax.com/business - Reports available for purchase
Nav
nav.com - Free basic access to business credit from multiple bureaus
Tip: Your business credit is public information. Customers, vendors, and competitors can view it. This is why building strong credit matters—it affects how others perceive your business.
What Hurts Your Business Credit
- Late payments: Even one late payment can damage your score. The later and more frequent, the worse the impact.
- Collections and charge-offs: Unpaid accounts that go to collections or get written off stay on your record for years.
- Tax liens: Unpaid federal or state taxes that result in liens are public record and severely damage your score.
- Judgments and lawsuits: Legal actions against your business appear in public records and affect your credit.
- High credit utilization: Maxing out credit lines signals financial stress, even if you pay on time.
- Bankruptcy: A business bankruptcy is the most severe negative mark and stays on record for 7-10 years.
How Business Credit Affects Your Funding Options
Strong business credit opens doors that are closed to businesses without it. Here's how it impacts your financing:
With Good Business Credit
- • Qualify for lower interest rates
- • Access larger loan amounts
- • Faster approvals with less documentation
- • More lender options to choose from
- • Better terms on vendor accounts
- • May avoid personal guarantees
With Poor/No Business Credit
- • Higher interest rates and fees
- • Smaller approved amounts
- • More documentation required
- • Fewer lenders willing to work with you
- • Net-0 or prepayment terms with vendors
- • Personal guarantee always required
Common Business Credit Mistakes
- Assuming personal credit is enough: Many business owners don't realize business credit is separate. Building it takes intentional action.
- Not checking which vendors report: Many vendor accounts don't report to credit bureaus. If they don't report, they don't help build your credit.
- Mixing personal and business expenses: Keeping finances separate makes bookkeeping cleaner and protects your personal credit from business issues.
- Ignoring errors on reports: Business credit reports can have mistakes. Check yours regularly and dispute any inaccuracies.
- Waiting until you need credit to build it: Start building business credit now, even if you don't need financing. It takes time to establish.
How Goodlane Group Helps
Goodlane Group works with lenders who evaluate the whole picture—not just credit scores. We help businesses at all credit levels find funding options that make sense.
For businesses with strong credit, we can help you leverage that profile to access the best rates and terms. For businesses still building credit, we connect you with lenders who weight revenue and time in business more heavily than credit scores.
Our team can also advise on strategies to improve your business credit over time, so your options get better with each funding cycle.
Business Credit Building Checklist
- Incorporate your business and get an EIN
- Register for a D-U-N-S Number with Dun & Bradstreet
- Open 3-5 trade accounts that report to business bureaus
- Get a business credit card that reports to business bureaus
- Pay all accounts on time or early
- Monitor your business credit reports regularly
- Keep credit utilization below 30%
Ready to See Your Funding Options?
We work with businesses at all credit levels. Apply to see what you qualify for—it won't affect your credit score.