Business Credit Score
Business Credit Score -
Your business credit score is just like your personal credit score as far as tracking your payments to creditors and vendors. The differences are that your business credit score is open to the public. You do not need a social security number or the businesses permission to pull a credit report on a business. Also, when you pull a business credit report on a business it does not hurt your business credit score. In order to get this business credit score you must have established business credit for your business. In order to establish business credit you need to have registered your business with Dun & Bradstreet. Once you have registered your business, you then need to seek out creditors and vendors that will report your payments negative or positive to the three main business credit reporting agencies. Dun & Bradstreet, Experian, and Equifax.
You must first establish business credit before you can have a business credit score
Start building your business credit today
Each business credit reporting agency will score your business a bit differently. Some agencies have more information then others. Some agencies focus on certain critical information then others. The main score however that most lenders and vendors are going to look at is your PAYDEX score. Your PAYDEX score is a score that Dun & Bradstreet gives your business based on how timely you make your business payments. The quicker you make your payments as a business, the higher your PAYDEX score is going to be. If you make all your business payments on the date that your payments are due, then you will have a PAYDEX score of about 80. A PAYDEX score between 75 and 80 is a pretty attractive score and expresses to the banks and vendors that you potentially deserve a business loan or a business line of credit. In order to get a PAYDEX score higher then 80 you will need to make your payments earlier then the due date.
PAYDEX Score Chart
PAYDEX Score Payments
100 Very Early
90 Early
80 Prompt
70 14 Days Late
60 21 Days Late
50 30 Days Late
40 60 Days Late
30 90 Days Late
20 120 Days Late
Check Your Dun & Bradstreet Business PAYDEX Credit Score
Check Your Experian Business Credit Score
Check Your Equifax Business Credit Score
Here are a few different articles, webinars, and podcasts on business credit.
How Long Does Building Business Credit Take?
Small Business Credit - Is It Different From Big Business Credit?
How To Get Business Credit.
How Business Credit Ratings Can Help You Grow Your Business.
What is a Business Credit Report?
Back to Business Credit
