Your Business Credit Score: How It Works and How to Improve It
Financial Planning · 2026-01-01 · 6 min
Your business credit score affects loan terms, supplier relationships, and even client trust. Here is how the score is calculated and what you can do to improve it.
Business credit scores are calculated differently from personal scores. Dun and Bradstreet, Experian, and Equifax each maintain separate business credit databases with different scoring models. The most widely used is the D&B PAYDEX score, which ranges from 0 to 100 and is based entirely on your payment history with vendors who report to D&B.
The PAYDEX score rewards paying early. A score of 80 means you pay on time. A score of 100 means you pay 30 days early. The score penalizes late payments heavily — even one late payment can drop your score significantly. The practical takeaway: pay your bills on time, and pay early when you can.
Building business credit requires separation from personal credit. Incorporate or form an LLC, get an EIN, open a business bank account, and establish trade credit with vendors who report to business credit bureaus. Net-30 accounts with office supply companies and shipping carriers are the easiest starting point.
Monitor your business credit reports regularly. Errors are common — a vendor may report a payment as late when it was on time, or a debt may appear that belongs to a different company. Dispute errors promptly. Unlike personal credit, business credit reports are not subject to the same dispute resolution requirements, so persistent follow-up may be needed.
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