Business Credit
What Is a Business Credit Score?
A business credit score measures the creditworthiness of a business. The scores range from 0–100. While the major business credit reporting agencies—Experian, Equifax, and Dun & Bradstreet—differ in the specific criteria they use, they use several common criteria to calculate business credit scores. Unlike personal credit scores, your business credit score is available to the public, so potential lenders, merchants, customers, and even your nosy neighbor, Michael, can see it.
Business credit score criteria
Experian, Equifax, and Dun & Bradstreet all use these common indicators in their reporting of business credit scores:
- Years in business
- Credit lines applied for in the last 9 months
- Credit lines opened in the last 6 months
- Payment history for the previous 12 months
- Number of late payments
- Benefits of strong business credit
A solid business credit score can help you:
- Qualify for small business loans, lines of credit, and credit cards
- Secure better rates and terms on financing
- Build a safety net that makes it easy to take out emergency loans or lines of credit if you fall on hard times
- Do business with new vendors and suppliers