Business Credit Scores: The Basics

Most owners know their personal FICO score down to the digit and have no idea whether their company has a credit file at all. Then a funding application asks for your EIN and D-U-N-S number, and the question comes up: what is my business credit score, and does it even matter?

It matters, but usually less than people fear and in different ways than they expect. This guide covers the three main bureaus, how their scores are built, how business and personal credit overlap for small companies, and what to do with the information when you are looking at funding.

Business credit is a separate file, with separate rules

A business credit report is tied to your company, usually through its EIN and a D-U-N-S number, not to your Social Security number. It collects data from suppliers, vendors, lenders and public records: how fast you pay invoices, how much credit you use, whether liens or judgments exist, and how long you have been operating.

Unlike consumer credit, there is no single universal score and no law that guarantees you can see every report for free. Each bureau runs its own model, uses its own scale, and gets its own slice of data. A company can look excellent at one bureau and thin at another simply because its suppliers report to only one of them.

The three bureaus and how their scores read

Dun & Bradstreet is the best-known name. Its PAYDEX score runs from 0 to 100 and is based almost entirely on payment behavior reported by trade references. Scores in the 80s and above generally indicate bills are paid on or before terms, while lower numbers indicate slow payment. D&B also issues risk and failure-style ratings that look at financial strength and the likelihood of delinquency.

Experian offers an Intelliscore Plus score on a 1 to 100 scale, with higher meaning lower predicted risk. It draws on payment history, credit utilization, company size and age, public records and industry data. Equifax runs a Business Credit Risk Score on a much wider range, plus a Payment Index from 0 to 100 that focuses on payment timing. Exact scales, names and cutoffs change over time, so check each bureau's current documentation instead of relying on a number you read years ago.

• Dun & Bradstreet: PAYDEX (0-100) built on trade payment data
• Experian: Intelliscore Plus (1-100) blending payments, utilization and public records
• Equifax: Business Credit Risk Score plus a Payment Index (0-100)
• SBA small-loan programs may also use the FICO SBSS score, which blends business and personal data

What actually moves the number

Payment history dominates. Paying a supplier on day 10 of net-30 terms looks very different from paying on day 45, even though both are technically in good standing at your own bank. Beyond that, the common inputs are how much of your available credit you are using, how many years the business has existed, how many trade lines are reporting, and whether tax liens, judgments or collections show up in public records.

Size and industry also play a part. A two-person landscaping company and a regional distributor are measured against different peer groups, so a score that looks mediocre in the abstract may be perfectly normal for your category.

Where your personal credit still shows up

For most small businesses, especially sole proprietorships, single-member LLCs and companies under a few years old, the business file is thin or empty. In that case funders lean on the owner. A personal guarantee is common, and the owner's personal credit is often reviewed alongside the company's finances.

That is why keeping the two worlds clean matters. If business debts are paid from a personal card, or the company has no bank history of its own, there is little to build a business score from and the owner's profile carries everything.

How funders really use business credit

Different products weigh credit differently. Traditional bank and SBA loans usually care a great deal about scores, tax returns and time in business. Alternative products such as merchant cash advances and some short-term working capital are typically underwritten more heavily on bank deposits and revenue consistency, with credit as one input among several. Varies by funding partner and underwriting.

At Fidelity Funding, the initial review uses a soft credit pull, so looking at your options does not ding your score. A funding specialist can then explain which of your partners tend to focus on revenue and which look harder at credit, so you are not guessing.

A practical checklist for the next 30 days

You do not need a perfect score to move forward, but a few quick checks prevent surprises. Treat the list below as housekeeping rather than a project.

1. Confirm your legal business name, address and phone match across your state filing, bank account and tax records.
2. Look up or request a free D-U-N-S number if you do not have one.
3. Pull your reports from each bureau and look for errors, old addresses or accounts that are not yours.
4. Dispute anything wrong in writing and keep copies.
5. Pay current supplier invoices early where cash allows, and ask whether they report to the bureaus.
6. Resolve open liens or judgments before applying, or be ready to explain them.

This article is for general information only and isn’t financial, legal or tax advice. Funding approval, amounts and terms are set by funding partners and depend on underwriting.