Business credit score: How to check & improve it

Bootstrapping your business is an impressive accomplishment, but there comes a time when you need more than just your own funds to grow and expand.  

Maybe you wish to invest in a marketing campaign, expand your team, or upgrade your equipment. This is where financing options like loans and lines of credit come in. 

But before lenders open their wallets, they check one crucial thing: your business credit score.

Think of it like a financial report card.

‍A good score unlocks access to better offers for your business (favorable loan rates and repayment terms, quick approvals, and so on). 

Without one, you will get stuck on the sidelines, watching others access the necessary resources to grow.

Don’t worry though — we’ve got your back. In this guide, we will break down everything you need to know about your business credit score. 

We’ll explain what it is, how to check it, and, most importantly, how to build it up.

What is a business credit score

A business credit score, ranging from 1 to 100, reflects a company’s financial health to lenders and vendors. It tells them how trustworthy you (and your organization) are with money. 

The higher the number, the lower the risk you pose to lenders.

Just like a good personal credit score, a strong business credit rating (80 and above) unlocks a treasure chest of benefits for your company:

• Makes it easier to get approved for loans and lines of credit, often with lower interest rates. This translates to more funding for your business at a cheaper cost, freeing up cashflow for other areas.
  
• Helps you qualify for better loan terms, like longer repayment periods or flexible collateral requirements.
  
• Allows you to access special discounts and perks based on your business’s creditworthiness.
  
• Serves like a badge of honor, demonstrating responsible financial management to potential partners, investors, and customers. This boosts your overall business reputation.

In short, your business credit score is the key that unlocks doors to resources and opportunities.

Take charge and build a strong financial reputation to achieve sustainable growth.

👉 Learn what an export credit agency (ECA) is and how it can help you expand your brand across borders.

How are business credit scores calculated

The specific weight and calculation methods for business credit scores vary across each agency. 

But, in general, the key factors they consider include payment history, debt levels, credit utilization, credit history, industry risk, and public records.

Let’s take a closer look at what they mean:

Payment history

This is the salient factor, weighing heavily on your score. 

Do you consistently pay bills on time, or are you known for late payments? 

A history of prompt payments is a major green flag for lenders.

👉 Suggested read: 5 tips for securing the capital you need to scale your business

Debt levels

Credit reporting agencies prefer to see a well-maintained credit balance.

‍A high debt-to-assets ratio can be worrisome. 

Conversely, being debt-free also has its drawbacks. It suggests a lack of familiarity with managing credit.

Credit utilization

This refers to how much of your available credit you’re using.

‍Maxing out credit lines or constantly nearing your limit portrays your business as a risky borrower. 

So, keeping your credit utilization low for a healthier score is ideal.

👉 Also read: What is export finance and how can It help SMEs?

Length of credit history 

The longer your business has been around, the better.

‍A long credit history shows stability and experience in managing finances, which attracts lenders.

Types of credit used

The credit modes your business uses also matter.

Having a mix of credit products, like loans, credit cards, and lines of credit, demonstrates responsible credit management across different categories.

Industry risk

Some industries are inherently riskier than others from a financial standpoint. 

For example, a skydiving company will face a higher risk assessment compared to an accounting firm. 

Public records

The presence of legal troubles, bankruptcies, or outstanding judgments will negatively impact the rating. 

You must maintain a spotless record in terms of legality and finances to establish a strong business credit score.

Regardless of the factors at play, the bottom line is simple: the better your business score, the more attractive it looks to lenders and vendors, potentially unlocking favorable deals and opening doors to long-term success.

👉 If you’re looking for fast and flexible funding, we've got you. Download our free eBook: Fuel your eCommerce growth in 2025. 

How to check your business credit score

First things first: If you haven’t already, you’ll need to grab a DUNS number from Dun & Bradstreet.

It’s the first step to establishing a business credit profile. 

Once you’ve got that sorted, here’s where you can check your score: 

• Dun & Bradstreet: Their CreditSignal service offers a free peek at your Paydex score (0-100) and other ratings. You need to subscribe to one of the upgraded plans for more.
  
• Experian: You’ll need to purchase a one-time business credit report for $39.95 or consider their Business Credit Advantage subscription ($189/year) for unlimited access.
  
• Equifax: These guys play hard to get. You’ll get a free report when you’re applying for business credit. For everything else, you’ll need to contact them directly for purchase options.

That said, please keep in mind that there might be slight variations in scoring models and names across different credit bureaus. 

Don’t get hung up on the specifics; the overall message is what counts.

Our tip: Consider signing up for a paid credit monitoring service to get alerts on changes to your business credit profile. 

Make it a habit to review your reports periodically to check for errors or changes that impact your score and address them proactively. 

👉 Check out this guide on crowdfunding to understand if it’s the right choice to grow your brand.

What is a good business credit score?

Anything above 80 on a scale of 0 to 100 is a “good” business credit score. It signifies a low credit risk, which benefits businesses in several ways.

This includes easy access to loans and financing and the best terms and rates.

Here’s a breakdown of the score ranges, their implications, and how they affect different financing types:

• 80-100 (excellent): This golden score, equivalent to a personal score of 720+, indicates minimal credit risk.
  
• 50-79 (average): This falls in the “medium risk” category, equivalent to a personal score of 620–719.
  
• 0-49 (poor): This score, similar to a personal score below 620, signifies high credit risk. 

While the 0-100 scale is a common reference, we want to clarify that different credit bureaus might have slightly different scoring models and names:

• Dun & Bradstreet: They have a Paydex score (think overall payment habits), a failure score (risk of closure), and a delinquency score (how often you’re late on payments).
  
• Experian: Similar to Dun & Bradstreet, they have a business credit score, a risk rating, and track payment trends and public records.
  
• Equifax: They focus on payment history (payment index), risk of delinquency (credit risk score), and risk of closure (business failure score).
  
• FICO Small Business Scoring Service (SBSS): This score (0-300) is important for SBA loans under $500,000. A higher score means you’re a less risky borrower.

Our tip: By understanding what factors influence your business credit rating and how it translates into loan terms, you can take strategic steps to improve your standing and unlock the resources you deserve.

Is debt financing the right funding choice for your business? Learn how it works, its advantages and disadvantages, and more.

What credit score do you need for a business loan?

There’s no one-size-fits-all answer — different lenders have different requirements. 

If your company’s credit score falls between 80 and 100, you will have immediate access to a diverse selection of financing options. 

You and your organization will receive preferential treatment across borrowing costs and repayment structures. This covers high-value loans, adaptable credit lines, and Small Business Administration (SBA) loans.

If it’s hovering in the 50 to 79 range, you can still qualify for traditional financing, but the options will be more limited.

Short-term loans and lines of credit are still on the menu, but brace yourself for higher interest rates. 

SBA loans? Maybe, but don’t expect five-star treatment on the terms.

And if it’s below 50, there’s not much at your disposal.

Bank loans, government loans, and credit lines are pretty much beyond your reach. Personal lending services may throw you a lifeline, but be ready for sky-high rates and collateral demands that will make your eyes water.

Our suggestion: While it’s fantastic to have a solid credit score for your business, don’t worry if yours isn’t perfect.

There are still ways to get funding.

Try exploring alternative methods of financing, such as invoice factoring, revenue-based financing, and crowdfunding.

Need a business loan right away? Learn how you can get the funds you need even with a bad credit score.

How to improve your business’ credit score

Establishing a strong business credit score is like building muscle — it takes time and dedication, but the rewards are worth it.

Here are some powerful tips to get you started:

1. Pay bills on time

This is the golden rule! Consistent on-time payments are the most consequential factors influencing your score.

Set up automatic payments or reminders to avoid any accidental slips that can damage your credit history.

2. Establish business credit lines

Think of business credit lines as training wheels for larger loans. Open business credit cards or lines of credit and use them responsibly, paying off balances strategically.

This shows your ability to manage money while accumulating positive ratings for your business effectively.

3. Keep credit utilization low (but not too low)

Just like with personal credit, avoid maxing out your credit lines. Keep your credit utilization ratio (amount of credit used divided by total credit limit) below 30%.

This shows lenders that you’re not overextending yourself and that you know how to manage your debt.

4. Separate business and personal finances

Use separate bank accounts and credit cards to track business expenses accurately and avoid commingling funds.

This indicates that you’re financially responsible and makes it easier for lenders to assess your business’s creditworthiness.

👉 Starting a small business is no easy feat, and in the current financial climate, it may just be more difficult than ever. Learn how alternative financing can help you with the funds you need.

Consider a business credit card (or two)

The process of establishing a credit history for your business involves using credit strategically.

Consider applying for a business credit card and using it for specific expenditures. 

Then, pay your dues on time and in full.

Build relationships with vendors and suppliers

Reliable payment builds trust. Cultivate positive relationships with vendors and suppliers by paying invoices promptly.

Some vendors may even report your payment history to credit bureaus, giving your score a boost.

👉 Boost your supplier relationships. Check out our free guide to learn about the winning strategies for international trade.

Get listed on business directories

Increase your business visibility by getting listed on reputable online directories and business listings.

This helps establish your organization’s legitimacy and can positively impact your creditworthiness in the eyes of lenders.

Monitor your business credit reports regularly

Monitor your business credit reports the same way you do for your personal credit score.

Look for errors or discrepancies and swiftly dispute them with the credit bureaus to ensure accuracy.

Our tip: Stick to responsible financial practices and you’ll be well on your way to unlocking better loan options and propelling your business forward. 

After all, improving your credit score is a marathon, not a sprint. 

Credit score or not, we are here for your financing needs

Most, if not all, traditional lenders want to see your business credit score before they even think about approving your loan. It’s their way of checking if you’re a safe bet. 

This is great for established businesses, but what if you’re a small or medium-sized business just starting out? Or maybe you’re in a country where building credit isn’t as easy as it seems on paper?

Enter Stenn. We get it — traditional financing can be as flexible as a brick wall. That’s why we’ve devised solutions like invoice financing. 

It’s simple: You sell us your outstanding invoices for a small fee. Boom — instant cash flow. 

And the best part? 

We’re more interested in your customers’ ability to pay than your business’ credit score.

No hidden fees, no bureaucratic obstacle course, just quick approvals and clear terms — it’s business financing for the 21st century.

Apply for Stenn financing the next time your business needs a cash injection and keep soaring, no matter what number the credit agencies slap on your file.