What Is a Business Credit Score and Who’s Looking at It?
When most people think of credit scores, they picture their personal score. You know, the one that determines whether you get approved for a car loan, mortgage, or credit card.
But if you own a business, you have another score that matters just as much: your business credit score.
It’s one of the most overlooked tools in entrepreneurship. And it can open doors, or quietly close them behind your back.
Let’s break down what a business credit score is, how it works, and who’s actually checking it behind the scenes.
What Is a Business Credit Score?
A business credit score is a number that represents the creditworthiness of your business.
Just like your personal score, it helps lenders, vendors, and service providers decide how risky it is to do business with you.
But here’s the catch: unlike your personal credit score (which typically ranges from 300 to 850), business credit scores are reported by multiple agencies, and each one uses a different scale.
The Main Business Credit Bureaus
There are three major players in the business credit world:
- Dun & Bradstreet (D&B):
Score Range: 0 to 100
The higher the score, the lower the risk. You’ll need a D-U-N-S Number to get started. - Experian Business:
Score Range: 0 to 100
Based on your payment history, credit utilization, and public records. - Equifax Business:
Offers multiple scores, including a payment index, credit risk score, and business failure score.
Each of these agencies tracks your business activity separately. That means you might have different scores at different places, and not all vendors or lenders report to the same bureaus.
What Affects Your Business Credit Score?
- Payment history: Do you pay your vendors and creditors on time?
- Credit utilization: Are you maxing out credit lines or using credit responsibly?
- Company size and age: Older, stable businesses tend to score better.
- Public records: Bankruptcies, liens, and judgments hurt your score.
- Business structure: Incorporated businesses tend to be more credible than sole proprietors.
Who’s Looking at Your Business Credit?
You might think this only matters if you’re applying for a business loan, but the list is much longer than that.
Lenders
Banks, credit unions, and online lenders will absolutely check your business credit before approving funding, and may base your interest rate or terms on that score.
Vendors and Suppliers
Want net-30 terms or extended payment windows? Many suppliers check your score before deciding whether to offer credit terms or ask for cash up front.
Landlords and Commercial Lease Offices
Trying to lease a storefront or office? Landlords often check your business credit as part of the approval process.
Insurance Companies
Some insurers use your business credit score as part of their underwriting, which can affect your premiums.
Government Agencies and Large Clients
If you’re bidding on contracts, grants, or working with major corporations, your business credit might be reviewed as part of their due diligence.
Why It Matters (Even If You’re Just Starting Out)
- It protects your personal credit by giving your business its own financial identity.
- It makes it easier to qualify for funding, trade lines, and better terms.
- It builds trust with other businesses, and keeps your options open as you grow.
- It’s often free or low-cost to start building, especially with vendor credit and net-30 accounts.
Final Thought
If you’re running a business, even a small side hustle, your business credit score is already speaking for you. The question is: what is it saying?
Take control of it early. Build it with intention. And don’t wait until you’re desperate for funding to find out it’s not where it should be.
At CreditNerds.com, we help business owners clean up their personal credit while laying the groundwork for smart business credit growth. Because the two often work together, and you need both to succeed. Schedule your free consultation here.
