Your business credit score affects the rates and terms you are offered. Learn what goes into it, how to read it, and the steps you can take to improve it.
How American business credit works
In the U.S., your business credit profile is maintained primarily through Equifax Business and Dun & Bradstreet. Unlike consumer credit, business credit is less standardized — different lenders pull different sources and weight them differently.
Payment history above all else
Payment history is the most important factor. Consistently paying suppliers, utilities, and lenders on or before the due date builds a strong foundation. Late payments — even by a few days — can register negatively on your commercial credit report.
Building a file from scratch
Many small businesses have thin or non-existent commercial credit files. If that is you, start by opening a business credit card in your company name and paying it in full monthly. Establish a vendor or supplier line with net terms and pay on time. These small steps compound over time.
Your personal credit still matters
Your personal credit score still matters, especially for businesses under 3 years old. Lenders often look at both the business and personal profile when making decisions. Keep your personal credit utilization under 30% and resolve any derogatory marks where possible.
Monitor and dispute errors
Pull your business credit report at least annually. Errors are not uncommon — especially for businesses with similar names or addresses. Dispute anything that appears inaccurate directly with the credit bureau.
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