Business Credit Score Guide: How It Works (2025)

What Is a Business Credit Score?

A business credit score is a numerical rating of your company's creditworthiness, separate from your personal credit. It's used by lenders, suppliers, and insurance companies to assess the financial risk of doing business with you. Unlike personal FICO scores (300–850), business credit scores vary by bureau: Dun & Bradstreet uses a PAYDEX score (0–100), Experian Business scores range 0–100, and Equifax Business Credit Risk scores range 101–992.

The Major Business Credit Bureaus

Dun & Bradstreet is the largest business credit bureau. Their PAYDEX score is entirely payment-history based — pay early and you'll score 100; pay 30 days late and you're in the 50s. You need a D-U-N-S number to establish a D&B file. Experian Business Credit pulls data from lenders, suppliers, and public records. Their score considers payment history, outstanding balances, years in business, and industry risk. Equifax Business Credit is used heavily by traditional banks and factors in payment history, credit utilization, and derogatory marks. LexisNexis Risk is less commonly known but increasingly used by fintech lenders who pull from public records, business filings, and alternative data.

How to Build Business Credit (If You're Starting From Zero)

First, establish your business as a separate legal entity (LLC or corporation), obtain an EIN from the IRS, open a dedicated business bank account, and get a D-U-N-S number (free from Dun & Bradstreet). Next, open trade lines with vendors that report to business credit bureaus. Uline, Quill, and Grainger are popular starter options — they often extend net-30 accounts without a credit check. Make sure to pay early or on time. Then apply for a secured business credit card or a business card through a bank where you have an existing relationship. Spend on it regularly and pay in full each month. After 6–12 months of on-time payments, you'll have a foundation for a real business credit file that lenders can assess.

How to Improve an Existing Business Credit Score

Review your reports at all three bureaus annually and dispute any inaccurate information. Negative marks fall off after 7 years, but you can't wait that long if you need funding now. The fastest lever is payment history. Even a few early payments to suppliers who report to D&B will move your PAYDEX score up quickly. Reduce credit utilization on any existing business credit cards below 30%. If you carry high balances, paying them down is a priority. If you've had derogatory marks due to a cash flow crisis, a goodwill letter to the creditor asking them to remove the mark (especially if it was a one-time occurrence and you've otherwise been on time) sometimes works.

Frequently asked questions

Does my personal credit affect my business loan?

For most small business loans — especially if your business is less than 3 years old or revenue is under $1M — yes. Lenders use your personal credit as a proxy for how you manage financial obligations. As your business credit history matures, personal credit becomes less important.

How long does it take to build business credit?

With the right actions, you can establish an initial business credit file in 3–6 months. Building a strong profile that qualifies you for prime lending terms typically takes 2–3 years of consistent on-time payments and responsible credit use.

What business credit score do I need to get a loan?

It depends on the lender and product. For bank term loans and SBA loans, a PAYDEX of 75+ and personal FICO above 680 is typical. Alternative lenders and online platforms often work with much lower scores, placing more weight on cash flow and revenue consistency.