- 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.
Frequently asked
Who calculates business credit scores? +
The main commercial bureaus are Dun & Bradstreet (PAYDEX), Experian Business, and Equifax Business. Each uses its own scale and data, so your score can differ across bureaus.
How is a business credit score different from a personal one? +
It's tied to your company's EIN and trade history rather than your Social Security number. Many lenders still check your personal credit too, especially for newer or smaller businesses.
How can I build business credit? +
Open accounts with vendors and lenders that report to the commercial bureaus, pay on or before the due date, and keep your business information consistent across filings.
Last updated: June 2026