Understanding Your Business Credit Score
How business credit scores work, why they matter, and what you can do to improve yours.
Most business owners are familiar with personal credit scores, but business credit scores are a separate system — and many entrepreneurs don't realize their business has one until they apply for financing. Understanding how business credit works gives you a significant advantage when it comes to accessing capital on better terms.
What Is a Business Credit Score?
A business credit score is a numerical rating that reflects your company's creditworthiness — its history of paying suppliers, lenders, and creditors on time. In Canada, the main business credit bureaus are Equifax Business and Dun & Bradstreet. In the U.S., the major bureaus are Dun & Bradstreet (PAYDEX score), Experian Business, and Equifax Business. Unlike personal credit scores, which range from 300–900, business credit scores use different scales depending on the bureau — PAYDEX scores, for example, run from 0 to 100.
How Business Credit Scores Are Calculated
Business credit scores are based on several factors: your payment history with suppliers and creditors (the most important factor), the age of your business credit file, the number and types of credit accounts you have, your credit utilization on revolving facilities, and any public records such as liens, judgments, or bankruptcies. Unlike personal credit, business credit is not automatically built — you need to actively establish trade lines and ensure your suppliers are reporting your payment history to the bureaus.
Why Your Business Credit Score Matters
A strong business credit score can unlock better loan terms, higher credit limits, and lower interest rates. It can also affect your relationships with suppliers — businesses with strong credit profiles often qualify for net-30 or net-60 payment terms, which improves cash flow. Conversely, a weak or non-existent business credit file forces lenders to rely more heavily on your personal credit score and may limit the amount you can borrow or increase the cost of capital.
How to Build and Improve Your Business Credit
Start by ensuring your business is properly registered and has a dedicated business bank account and phone number — these are the foundations of a business credit file. Open trade accounts with suppliers who report to business credit bureaus, and pay them consistently on time or early. Apply for a business credit card and keep utilization below 30%. Register your business with Dun & Bradstreet to get a DUNS number if you haven't already. Every on-time payment builds your file; every late payment damages it.
Monitoring and Protecting Your Business Credit
Check your business credit reports at least once a year — errors are more common than you'd think, and an incorrect late payment or a fraudulent account can significantly damage your score. Both Equifax Business and Dun & Bradstreet offer monitoring services. If you find an error, dispute it directly with the bureau and provide documentation. Keeping your business credit file clean and accurate is one of the highest-return activities you can do to improve your access to capital over the long term.
Your Credit Score Doesn't Have to Hold You Back
We work with businesses across the credit spectrum. Find out what you qualify for today.
Check My Offer