Understanding business credit scores

Business credit scores are an important aspect of your company’s financial health. They can impact everything from investor relationships to insurance costs and eligibility for funding. There are several ways you can establish and influence your company’s credit score, such as by using a business credit card responsibly and paying all your bills on time. Learn more about how to increase your company’s credit score to support its success and growth. 

Key takeaways

  • A business credit score is a number typically between 1 and 100 that reflects your business’s creditworthiness. 
  • When you apply for credit, lenders may review your business credit score to help evaluate your likelihood of borrowing and repaying funds responsibly.
  • Business credit scores can influence your eligibility for funding, insurance premium costs and more.

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What is a business credit score?

A business credit score is a measure of your business’s credit risk. Business credit scores are usually between 1 and 100, while personal credit scores range from 0 to 850. As with personal scores, the higher your business credit score, the better your creditworthiness in the eyes of lenders, investors and other key parties.

Many factors influence your business credit score, including payment history, credit utilization and the size of your company. Understanding the factors that influence your company’s credit score can help you improve its creditworthiness and access associated benefits. 

Types of business credit scores

Each credit bureau has its own scoring system to evaluate a business’s health and creditworthiness. The three main business credit scoring bureaus are Dun & Bradstreet, Equifax® and Experian®. Take a closer look at each.

Dun & Bradstreet business credit scores

Dun & Bradstreet calculates many different business credit scores, including: 

  • PAYDEX® score: With a range of 1-100, this score indicates a business’s likelihood of making on-time payments. Scores below 50 signal a high risk, scores of 50-79 signal a moderate risk and scores of 80-100 signal a low risk. 
  • Failure score: With a range of 1,001-1,875, this score indicates the risk of bankruptcy and business closure within a year. The lower the score, the higher the risk. 
  • Delinquency score: With a range of 1-5, this score indicates the risk of bankruptcy and payment deadlines missed by over three months. The lower the score, the lower the risk. 

Equifax business credit scores

Equifax provides three key business scores: 

  • Payment index: With a range of 0-100, this score indicates a business’s likelihood of making on-time payments. The higher the score, the lower the risk. 
  • Credit risk score: With a range of 101-992, this score indicates a high likelihood of delinquent payments. The higher the score, the lower the risk. 
  • Business failure score: With a range of 1,000-1,880, this score indicates the likelihood of business failure within a year. The higher the score, the lower the risk. 

Experian business credit scores

Experian leverages the following scores and ratings to pinpoint business creditworthiness and risk:

  • Business credit score: With a range of 1-100, this score represents the likelihood of severely late payments. The higher the score, the lower the risk.
  • Financial stability risk rating: With a range of 1-5, this score indicates the likelihood of bankruptcy or default within a year. The lower the score, the lower the risk. 

How business credit scores are calculated

Business credit bureaus calculate your company’s credit score and other ratings based on their own scoring models. As a result, your business’s credit score may differ depending on the company that calculated it and the scoring model used. However, most business credit scoring companies consider the following factors when determining your score:

  • Number of trade experiences
  • Outstanding account balances
  • Payment history and habits
  • Credit utilization
  • Public records related to liens, judgments or bankruptcies
  • Business age and size

By understanding what factors influence your business’s credit score, you can work to build a better credit profile and support your company’s health, financial standing and growth potential.

What is a good business credit score?

Different bureaus usually have their own scoring models with unique numerical ranges, so there’s no universal “good” business credit score. For models with ranges of 1-100, scores above 80 typically indicate low risk and a strong history of on-time payments. Refer to the table below for bureau-specific insights: 

Scoring model Score range

Dun & Bradstreet (PAYDEX score)

0-49: High risk
50-79: Moderate risk
80-100: Low risk

Equifax (Payment Index score)

1-19: Payments 120+ days overdue
20-39: Payments 91-120 days overdue
40-59: Payments 61-90 days overdue 
60-79: Payments 31-60 days overdue
80-89: Payments 1-30 days overdue
90-100: Payments are on time 
Experian (Intelliscore) 1-10: High risk 
11-25: Medium-to-high risk 
25-50: Medium risk 
51-75: Low-to-medium risk
76-100: Low risk 

 

How is your business credit score used?

Lenders, insurers, investors, vendors, suppliers and others may use a business’s credit scores to gauge how reliable a business may be as a borrower, client or partner. Good business credit scores may help your business obtain:

  • Better financing options
  • More negotiating power
  • Lower insurance premiums
  • Favorable contract rates and terms
  • Partnerships with other organizations

How to check your business's credit scores

You can access your business’s credit scores by getting your business credit reports from Experian, Equifax and Dun & Bradstreet:

Business credit score FAQ

Learn more about business credit scores with these frequently asked questions.

In most cases, you must purchase your business credit reports to view your credit scores. However, Dun & Bradstreet offers D&B Credit Insights Free. It doesn’t offer a full look at your business credit reports and scores. But you can see directional changes for three of your business credit scores, view a legal events summary and receive credit alerts.

Small business loans typically rely on your Small Business Scoring Service score or SBSS℠ score. To qualify for an SBA loan, you’ll need a minimum SBSS score of 155. Keep in mind that some small business lenders may review your personal credit score. 

Business credit scores are a reflection of your business’s financial health and credit risk, while personal credit scores only reflect your personal creditworthiness. While they are separate, your personal credit scores may help get you started as a new business owner.

You can take steps to improve your business credit scores by:

  • Responsibly managing credit accounts with companies that report trade information
  • Paying your bills on time or early
  • Keeping your credit use low
  • Disputing potential errors on your business credit reports 

Business credit scores in a nutshell

Your business credit scores show lenders and potential partners how you manage money. With healthy scores, your business has an essential tool to help it successfully grow.

It’s never too soon to take charge of your credit scores. Look through Capital One’s business credit cards to start building your credit while accessing other benefits to support your company’s growth.


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