You probably know your personal credit score and how it impacts your ability to get approved for loans and credit cards. But your business has its own credit score, one that similarly affects its eligibility for loans, business credit cards and other products.
If you're a small business owner, it's critical to understand how your business credit score is calculated and what you can do to improve it.
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What is a business credit score?
A business credit score is a numerical indicator of a company's creditworthiness and a major factor in whether it qualifies for financing and at what rates and terms. It also impacts insurance premiums, lease approvals and whether a company can buy items from suppliers on credit.
While personal scores are tabulated using FICO or VantageScore, business scores are calculated using scoring models designed by Dun & Bradstreet (D&B), Equifax or Experian.
And, instead of 300 to 850, scores can range between 0 and 100, 101 and 992 or 1000 and 1610, depending on the reporting bureau. Generally, a higher score means you're less of a risk to a lender.
How is a business credit score calculated?
Business credit scoring models are different than the consumer models you may be familiar with. To get a Dun and Bradstreet PAYDEX® score, for example, you need a D-U-N-S Number, which you can request for free. You also need at least two vendor accounts (tradelines) that report payment history to D&B and three payment records (trade experiences).
D&B will then calculate your score by looking at:
1. Payment history. The largest factor in your score, this incorporates:
- On-time vs. late payments
- How late (30, 60, 90+ days)
- Frequency of early and late payments
2. Credit utilization. How much of your available credit are you tapping? Using under 30% of your available credit is ideal, while a credit utilization ratio of 70% or more is a red flag for most lenders.
3. Length of credit history. How long has your business had credit? Having more well-managed, older accounts makes a business more attractive to lenders.
4. Negative events. Accounts that are delinquent or in collections can tank your chances of approval, as can judgments, tax liens, legal filings or bankruptcies.
5. Credit mix. This includes the types of credit you've used, such as revolving credit, installment loans, and trade lines. A good variety shows lenders you can manage different types of financing.
6. Company profile. Scoring models also look at how long you've been operating, the number of employees, annual revenue, whether there have been big recent changes to your business and other factors.
Dun and Bradstreet business credit score ranges
| Dun & Bradstreet Paydex score | Rating | Meaning |
|---|---|---|
| 80–100 | Good (low risk) | Payments made on time or early |
| 50–79 | Fair (moderate risk) | Payments made 15 to 30 days late |
| 0–49 | Bad (high risk) | Payments made more than 60 days late |
Scoring model companies get information from your business credit report. Like a personal credit report, this is a snapshot of your company's credit history. Information you'll typically find in a business credit report includes:
- Number of employees, sales, ownership and subsidiaries
- Business registration and operational information
- Industry classification
- Public filings (i.e. liens, judgments, etc. )
- Payment history and collections
Have you registered your business yet?
How to check your business credit score
While there are many ways to get your personal credit score for free, there are fewer options for business scores.
Getting your business credit score for free
Dun & Bradstreet Credit Insights Free will give you a general idea of what's on your business credit report and where your business credit score is heading. It includes:
- Basic company information and business operations summary
- Changes to your PAYDEX Score, Delinquency Score and Failure Score
- Legal events summary
Businesses registered in Bank of America's Business Advantage 360 small business platform can access their Dun & Bradstreet credit scores for free. Enrollment in Business Advantage 360 is included with BoA Business Advantage Fundamentals and Business Advantage Relationship accounts.
Bank of America Business Advantage Fundamentals™ Checking
Special offer
Tiered Offer: Earn $400 bonus when you deposit $5,000+ in New Money within 30 days of account opening, and maintain that balance for the next 60 days or earn $750 bonus when you deposit $15,000+ in New Money within 30 days of account opening, and maintain that balance for the next 60 days. Offer expires 12/31/2026*
Monthly maintenance fee
$16 with options to waive
Minimum deposit to open
$100
Minimum balance
$5,000 to waive the monthly fee
Annual Percentage Yield (APY)
None
Free ATM network
16,900 Bank of America ATMs
ATM fee reimbursement
No
Small business perks
Digital cashflow tools, mobile banking, account balance alerts
Overdraft fee
$10 per item (up to two fees per day). Accounts can be set to decline transactions when there are insufficient funds.
Mobile check deposit
Yes
Terms apply. Bank of America is a Member FDIC.
How to avoid the monthly fee:
Meet one of the following requirements each statement cycle.
- Maintain a $15,000 combined average monthly balance across your linked Bank of America accounts
- Qualify for and enroll in the Preferred Rewards for Business program (first four checking accounts per enrolled business)
* Offer is available only to applicants who apply for a new account online. This offer is intended for new customers only; your business is not eligible for this offer if you were an owner or signer on a Bank of America Business Advantage account within the last twelve (12) months. Bank of America employees are not eligible for this offer. Only one Business Advantage Banking bonus offer per business owner, regardless of the number of businesses owned or operated by the customer. Offer may not be combined with any other offers. Offer expires December 31, 2026. Bank of America may change or discontinue this offer at any time without notice. The value of this bonus may constitute taxable income; Bank of America may issue an IRS Form 1099 to reflect the value of the bonus. Bank of America, N.A. Member FDIC.
Paid access to your business credit score
If you want to see your business credit score with Dun & Bradstreet and aren't a Bank of America Business Advantage 360 client, you can get a paid Dun & Bradstreet account. A basic D&B Credit Insights subscription starts at $49 per month ($499 a year) and gives unlimited access to your Dun & Bradstreet credit file, including six D&B scores and ratings.
For $149.00 a month ($1,499 a year), CreditBuilder™ Plus allows you to get more detailed insights, submit financial statements and add up to a dozen trade accounts.
You can get access to your Experian business credit report with a one-time purchase of $39.95 for a CreditScore Report and $49.95 for a more detailed ProfilePlus Report. For more insights and alerts, you can get an Experian Business CreditAdvantage membership for $199 a year or the more detailed Business CreditScore Pro plan for $1,495.
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