A good business credit score can unlock preferred rates on business loans and insurance. Learn how to check your reports with the main business credit bureaus.
Updated Feb 27, 2024 · 3 min read Written by Kelsey Sheehy Senior Writer Kelsey SheehyKelsey Sheehy is a senior writer and NerdWallet authority on small business. She started at NerdWallet in 2015 and spent six years as a personal finance writer and spokesperson before switching gears to cover the financial decisions and challenges faced by small-business owners. Kelsey’s work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. Kelsey has appeared on the "Today" show, NBC News and ABC’s "World News Tonight" and has been quoted by the Los Angeles Times, CNBC, American Banker, NPR and Vice, among other publications. Prior to joining NerdWallet, Kelsey covered college (and how to pay for it) for U.S. News & World Report. She is based in Washington, D.C.
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Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.
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A top-tier business credit score can allow you access to the most competitive rates and terms on financing and business insurance, and it can also open the door to potential partnerships and trade credit arrangements.
Unlike personal credit scores, which are standardized and available for free, each business credit bureau uses a different scoring system, and you often need to pay to view your report.
Monitoring your report is important because your business credit score is also available to the public — meaning potential investors, partners and lenders can use it to take stock of your company’s financial health.
A business credit report includes your credit score along with other insights into the financial health and creditworthiness of a business. It includes general information about a business like number of employees and ownership as well as details on credit accounts, payment history, collections and public filings, among other things.
Dun & Bradstreet, Experian and Equifax are the three main business credit bureaus that compile data on businesses. The information on their reports will typically be the same, although their collection and verification processes may be slightly different.
When you apply for a small-business loan or seek out another form of business financing, the lender will typically use your credit report to get your credit score and other information on your business.
Each credit bureau weighs different factors from your credit report when calculating your business credit score, but most look at a combination of the following:
Company size and age. Age of your oldest financial account. Available revolving credit limit. Established trade lines. Payment history to creditors and vendors. Public records for liens, judgments or bankruptcies.You can stay on top of your score, and check the financial health of other businesses, by pulling business credit reports from each of the main business credit bureaus.
Lenders may use different bureaus, so it's smart to check your business credit score with multiple agencies.
Businesses don’t automatically get a credit score from Dun & Bradstreet. You first need a DUNS number — it’s free to apply but can take up to 30 days to receive. Once established, Dun & Bradstreet rates your business’s financial health and assigns a Paydex score, a delinquency score and a failure score, along with several other ratings and predictors.
Paydex evaluates payment performance and companies are scored between 0 and 100, with a higher score indicating better payment history. The delinquency score (101 to 670) assesses the likelihood a business will pay late (91-plus days) in the next 12 months. A higher score translates to a lower risk.
The failure score, previously referred to as the financial stress score, ranges from 1,001 to 1,875 and predicts whether a business will file bankruptcy or shut down without paying its debts within the next 12 months. A low failure score equals a high risk.
You can check your Paydex score (and three other ratings) for free with Dun & Bradstreet’s CreditSignal package, which includes alerts for score changes and business credit inquiries. Upgraded subscriptions offer access to more ratings and deeper analysis, plus additional alerts and monitoring, for $15 or $39 per month.
Experian’s CreditScore report includes your business credit score, financial stability risk rating, payments trends and account histories.
The business credit score (ranging from 1 to 100) looks at payment behavior, primarily on commercial accounts, including the number of delinquent accounts and the number of accounts with payment terms beyond net 30 days. A higher score equals a lower risk for delinquent payments.
According to its website, Experian's financial stability risk rating (1 to 5) "predicts the likelihood of payment default and/or bankruptcy within the next 12 months," using factors like commercial collection accounts, credit utilization, and business and industry risk factors. A low score indicates low risk for serious financial distress.
You can purchase your CreditScore report through Experian’s website for $39.95 per report or subscribe to Business Credit Advantage for $189 per year for unlimited access, plus alerts, monitoring and additional analysis. Experian does not offer a free business credit report.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Equifax’s business credit report also includes multiple scores — credit risk, failure risk and payment index — to assess a business’s creditworthiness.
The credit risk score ranges from 101 to 992 and evaluates the likelihood of business failure or delinquent payments. A higher score equals lower risk. Payment index scores (1 to 100) evaluate payment history, with delinquent payments leading to a lower score. And the failure risk score (1,000 to 1,880) aims to predict the odds a business will shut down operations in the next 12 months. A lower score equals a higher risk of failure.
Owners can request their company’s report at no cost, but there are a few caveats. First, you can only get your own credit report if you’re applying for business credit, like a business line of credit or business credit card . Second, you have to contact an Equifax representative and provide proof of a business credit application.
Want to get insights on another business? You can contact Equifax to purchase a credit report for a competitor, partner or supplier. Unlike other business credit bureaus, Equifax does not publish pricing on its website.
Paydex score, delinquency score, failure scores and supplier evaluation risk rating. Alerts for business credit inquiries and changes to scores and ratings. Access for 14 days.CreditSignal Plus ($15 per month) and CreditMonitor ($39 per month) also available for unlimited access, additional scores and ratings, and credit monitoring and alerts.
CreditScore report: $39.95 per report.
Business credit score and financial stability risk rating. Payment trends, credit summary and score factors. Judgments, liens, bankruptcies and collection information.Business Credit Advantage ($189 per year) also available for unlimited access to your score and detailed business credit report.
Business credit report: Free when applying for business credit.
Credit risk score, business failure score and payment index score. Credit utilization and summary of credit accounts. Public records, such as bankruptcy or tax lien.Contact Equifax directly to purchase a business credit report.
A low business credit score — or no score at all — can make it difficult and more expensive to get business loans and payment agreements with suppliers.
You can build business credit in a number of ways:
Structure your business as a limited liability corporation (LLC), partnership or corporation instead of a sole proprietorship.
Opening a business bank account. Acquire and use a business credit card. Establish trade lines with suppliers. Work with creditors that report to the main business credit bureaus.Making on-time payments, correcting errors on your credit report and managing your business debt can be helpful in maintaining a solid business credit score.
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Kelsey Sheehy is a senior writer and NerdWallet authority on small business. She has appeared on the "Today" show and NBC News, and her work has been featured in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. See full bio.
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