Understanding Your Business Credit Score in the U.S.

In the U.S., business credit is tracked by several bureaus, mainly Dun & Bradstreet, Experian Business and Equifax Business. Unlike consumer credit, there is no single score everyone uses. Each bureau builds its own scoring model, and lenders choose which reports to pull and how much weight to give them.

For small loans, many lenders also use a blended score, such as the FICO SBSS score used in small business lending, which combines business data with the owner's personal credit. That is one reason your personal profile still matters even when you borrow in the company's name.

• Dun & Bradstreet PAYDEX: a 0 to 100 score based mainly on how quickly you pay suppliers. Paying invoices on or before the due date supports a high score.
• Experian Business Intelliscore: a 1 to 100 score that weighs payment history, credit utilization, public records and company size.
• Equifax Business: reports payment indexes and risk scores built from trade payment data and public filings.

You do not need to memorize the scales. What matters is that all of them reward the same behavior: paying on time, keeping balances modest and having an established file.

Payment history is the heaviest factor in nearly every model. Paying suppliers, utilities and lenders on or before the due date builds a strong foundation, and a pattern of late payments, even a few days late, can register on your commercial reports.

A practical habit: set up automatic payments for fixed bills and calendar the due dates for the rest. If you know cash will be tight, contact the creditor before the due date. Many will agree to a short extension, which is far better than a late mark.

Many small businesses have a thin or empty commercial file, which is common and fixable.

1. Make sure the business is properly set up: legal entity, EIN, a business bank account, a business phone number and a consistent name and address everywhere.
2. Register for a D-U-N-S number, which Dun & Bradstreet issues at no charge.
3. Open a business credit card and pay it in full each month.
4. Open trade accounts with suppliers that report to the bureaus, ideally ones offering net-30 terms, and pay them early.

These steps compound. Six to twelve months of clean activity usually produces a visible file.

For businesses under about three years old, lenders usually evaluate the owner as well as the company. A personal guarantee is common for small business loans, which means your personal credit is effectively part of the application.

Keep personal revolving utilization low, avoid opening several new accounts just before you apply, and resolve derogatory marks where possible. Keeping personal and business spending strictly separate also makes your statements easier for a lender to read.

Pull your business reports at least once a year. Errors are not rare, particularly for businesses with common names or those that have moved. A misattributed late payment or a closed account still showing as open can lower your standing without you knowing.

If something is wrong, file a dispute directly with the bureau and keep copies of what you send. Corrections often take weeks, so do this well before you need financing, not the week you apply.

A weak or thin file limits some options but not all. Equipment financing is secured by the asset itself, which makes it more accessible. Revenue-based and working capital products lean on bank deposits more than on credit scores. In every case a lender will want to see recent, consistent cash flow.

Improving your file while you borrow is possible: on-time payments on any new financing are typically reported and help future applications. lendfloCapital works with a range of credit profiles, and there is no cost to apply.