What is a business credit score and how does it work?

What a business credit score is

A business credit score reflects how reliably your company pays its obligations — to suppliers, vendors, and lenders — and is tied to your business's identity (EIN and business profile) rather than your Social Security number. Lenders use it alongside your revenue and bank activity to gauge risk. Early on, many small-business lenders still weigh the owner's personal credit too, but as the business builds its own track record, the business score carries more weight.

The major business credit scores

• Dun & Bradstreet PAYDEX — a 1–100 score based on payment timeliness to suppliers; requires a D-U-N-S number
• Experian Business / Intelliscore — blends payment history, credit utilization, and public records
• Equifax Business — reports payment trends and credit utilization
• FICO SBSS — the Small Business Scoring Service score the SBA uses to pre-screen 7(a) applications

How to build it

Building business credit starts with the basics: register the business and get an EIN from the IRS, open a dedicated business bank account, and put recurring expenses on accounts that report to the business bureaus. Pay vendors and business cards on time (or early), keep utilization moderate, and add trade references that report. Separating business and personal finances this way is also what protects the liability shield of an LLC or corporation, per the SBA's guidance on business structure.