Introduction
Your business credit score plays a crucial role in determining your company’s financial credibility. Whether you’re seeking a loan, a line of credit, or negotiating favorable payment terms with suppliers, a strong business credit score can open doors to numerous opportunities. However, many business owners overlook the importance of monitoring their credit score until they face difficulties securing funding.
In this guide, we’ll walk you through how to check your business credit score, why it matters, and steps you can take to improve it.
What Is a Business Credit Score?
A business credit score is a numerical representation of your company’s creditworthiness. It is based on factors such as payment history, credit utilization, company size, and industry risk. Unlike personal credit scores (which range from 300 to 850), business credit scores typically range from 0 to 100, depending on the reporting agency.
Major business credit bureaus include:
- Dun & Bradstreet (D&B PAYDEX Score) – Ranges from 0 to 100, with 80+ considered excellent.
- Experian Business Credit Score – Ranges from 1 to 100, with higher scores indicating lower risk.
- Equifax Business Credit Risk Score – Ranges from 101 to 992, with higher numbers being better.
- FICO Small Business Scoring Service (SBSS) – Ranges from 0 to 300, often used by lenders for loan approvals.
Understanding these scores helps businesses maintain financial health and secure better financing terms.
Why Checking Your Business Credit Score Is Important
Checking your business credit score regularly can provide several benefits, such as:
- Securing better financing options – Lenders prefer businesses with strong credit scores.
- Improving supplier relationships – Suppliers may offer better terms if your score is high.
- Detecting fraud or errors – Regular checks help you identify discrepancies that can impact your creditworthiness.
- Enhancing business growth opportunities – A strong score allows for expansion and investment with lower costs.
How to Check Your Business Credit Score
1. Identify the Right Credit Bureau
Different bureaus provide different types of business credit reports. To get a comprehensive view of your credit standing, check your score with multiple agencies.
2. Visit the Credit Bureau’s Website
Each credit bureau offers a service to check business credit scores:
- Dun & Bradstreet (D&B): Visit D&B’s website and request a D-U-N-S Number if you don’t already have one. This number is essential for tracking your business credit profile.
- Experian: Check your business credit score at Experian’s website.
- Equifax: Obtain a business credit report through Equifax’s website.
- FICO SBSS: This score is typically accessed by lenders, but you can check your eligibility through financing providers.
3. Request Your Credit Report
Most bureaus provide free or paid credit report services. Some offer basic credit summaries for free, while detailed reports with in-depth analysis may require a fee.
4. Review Your Credit Report for Accuracy
Once you obtain your credit report, check for:
- Incorrect payment history
- Outdated account details
- Fraudulent accounts or activities
- Errors in company information
If you find any discrepancies, dispute them with the credit bureau immediately to prevent negative impacts on your score.
How to Improve Your Business Credit Score
If your business credit score is lower than expected, here are actionable steps to improve it:
1. Pay Bills on Time
Payment history is one of the biggest factors affecting your score. Ensure all bills, including loans and vendor payments, are paid on or before their due dates.
2. Keep Credit Utilization Low
High credit utilization can indicate financial stress. Try to keep your credit utilization below 30% to maintain a strong score.
3. Establish Trade Credit Relationships
Building positive relationships with suppliers and vendors who report to credit bureaus can strengthen your credit profile.
4. Monitor Your Credit Report Regularly
Frequent monitoring helps you catch errors, fraud, and negative items before they cause significant damage.
5. Separate Business and Personal Finances
Use a business bank account and business credit cards instead of personal accounts to build a distinct credit profile for your company.
6. Reduce Outstanding Debt
Pay down existing debt and avoid taking on unnecessary credit obligations.
7. Register Your Business
Ensure your business is legally registered (LLC, Corporation, etc.) and has an EIN (Employer Identification Number) to establish credibility with credit bureaus.
Conclusion
Your business credit score is a vital component of your company’s financial health. Regularly checking your score, understanding what affects it, and taking proactive steps to improve it can open the door to better financing opportunities and business growth.
By following the steps outlined in this guide, you can ensure your business maintains a strong and reliable credit profile. Start today by checking your business credit score with major bureaus and making strategic improvements where necessary.
Have you checked your business credit score recently? Take control of your financial future today!
Josiah Sparks is a business writer and strategist, providing expert insights on management, leadership, and innovation at management-opleiding.org to help professionals thrive. His mission is to empower professionals with practical knowledge to excel in the ever-evolving business landscape.
