Establishing business credit is essential for the financial health and growth of your company.

Here’s why:

  • Access to Financing – A strong business credit profile makes it easier to qualify for loans, credit lines, and business credit cards with better terms.
  • Separates Personal & Business Finances – Helps protect your personal credit and assets by keeping business debts separate from personal liabilities.
  • Better Supplier & Vendor Terms – Many suppliers offer net-30 or longer payment terms to businesses with good credit, improving cash flow.
  • Higher Credit Limits – Business credit lines are often larger than personal credit limits, allowing for more flexibility in scaling operations.
  • Lower Interest Rates & Insurance Costs – Good credit can lead to lower borrowing costs and reduced insurance premiums.
  • Increases Business Credibility – A strong credit profile signals financial responsibility, making your business more attractive to investors and partners.
  • Easier Approval for Leases & Contracts – Landlords and service providers often check business credit before approving leases, utility accounts, or government contracts.

Business credit scores differ from personal credit scores because they assess different types of financial behavior and risk.

Here’s why:

  • Different Scoring Models – Business credit scores typically range from 0 to 100, while personal credit scores (FICO, VantageScore) range from 300 to 850. Business scores are based on trade credit, payment history, and public records.
  • Public vs. Private Information – Business credit reports are publicly available, while personal credit reports are confidential and require permission to access.
  • Reporting Agencies – Personal credit is tracked by Experian, Equifax, and TransUnion, while business credit is monitored by Dun & Bradstreet, Experian Business, and Equifax Business.
  • Financial Data Sources – Business credit scores rely on trade lines, vendor payments, business credit cards, and public records (e.g., bankruptcies, liens). Personal scores consider credit card usage, loans, mortgages, and debt ratios.
  • Liability & Risk Assessment – Business credit assesses the company’s ability to meet obligations, whereas personal credit evaluates an individual’s financial habits. Lenders and vendors use business credit to determine trade terms, interest rates, and credit limits.

business credit score ranges for the major business credit bureaus

Here's the basics:

Dun & Bradstreet (D&B) PAYDEX Score
Range: 0 – 100
Good Score: 80+ (indicates prompt payments)
Factors: Payment history with vendors and suppliers

Experian Business Intelliscore Plus
Range: 1 – 100
Good Score: 76+ (low risk of default)
Factors: Business credit accounts, payment history, credit utilization, and public records

Equifax Business Credit Risk Score
Range: 1 - 100
Good Score: 90+ (low risk of delinquency)
Factors: Credit history, public records, payment trends

FICO Small Business Scoring Service (SBSS)
Range: 0 – 300
Good Score: 160+ (often required for SBA loans)
Factors: Business and personal credit, revenue, financials

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