# Business Credit Score

> A business credit score is a number that rates how likely your company is to repay its debts, based on the business's own credit history rather than your personal credit.

## Key takeaways
- A business credit score rates how likely your company is to repay its debts, based on the business's own credit history rather than your personal credit.
- The best-known scores come from Dun & Bradstreet (PAYDEX), Experian, and Equifax, each using its own model and data, so your score can differ across bureaus.
- A stronger score can mean larger amounts, lower cost, and faster approvals, though many small-business lenders also check personal credit and require a personal guarantee.

## How a business credit score works

A business credit score summarizes your company's track record of paying
suppliers, lenders, and other obligations. Unlike a personal credit score, it's
linked to your business's identity — typically its **EIN, legal name, and
address** — and draws on data reported by commercial credit bureaus.

The best-known scores include **Dun & Bradstreet's PAYDEX** (a 1–100 scale based
heavily on payment timeliness), plus business scores from **Experian** and
**Equifax**. Each bureau uses its own model and data sources, so it's common to
have different scores in different places.

### What goes into the score

Models vary, but they generally weigh:

- **Payment history** — whether you pay vendors and lenders on time.
- **Credit utilization and outstanding balances.**
- **Length of credit history** and number of active trade accounts.
- **Public records** such as liens, judgments, or bankruptcies.
- **Company size and industry risk** in some models.

### Why it matters for funding

Lenders use your business credit score to gauge risk, set pricing, and decide
how much to offer. A stronger score can mean **larger amounts, lower cost, and
faster approvals**. That said, many small-business lenders also check the
owner's **personal credit** and often require a **personal guarantee**,
especially when the business is young or thinly established.

### What to watch for

- Scores differ by bureau — check more than one before assuming where you stand.
- Not every vendor reports payments, so paying bills alone may not build a file.
- Errors happen; review your reports and dispute inaccuracies.

If you're not sure where your business credit stands, Hoss Capital can help you
understand which funding options realistically fit your current profile.

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