How to Check Your Business Credit Score (and Why It is Not Like Your Personal One)

Most entrepreneurs are familiar with their personal credit scores. However, far fewer understand business credit scores or know how to check them. Unlike personal credit, which is typically established through an individual's financial activity, business credit must be developed through business-related financial activity and reported information. A company can operate for years without building a substantial business credit profile if its payment history is not reported to commercial credit bureaus.

Business credit scores may be considered by lenders, suppliers, insurers, and other organizations when assessing a company. The factors used and the weight assigned to each factor vary by scoring model and reporting agency. This article explains where business credit scores come from, how to check them, what to review in a business credit report, and how to strengthen a business credit profile over time.

Where Your Business Credit Score Comes From

Business credit scores differ from personal credit scores because there is no single scoring model used across all commercial credit reporting agencies. Each agency may collect different data, use its own methodology, and provide scores with different ranges and interpretations.

For example, one commercial credit reporting agency uses PAYDEX, a payment-performance index ranging from 0 to 100. According to its published scoring information, a score of 80 represents payments made according to agreed terms, while scores above 80 indicate that payments were made earlier than required.

Another commercial scoring model uses a scale of 1 to 100 and considers factors such as payment history, outstanding balances, credit utilization, public records, and business characteristics. Under this model, scores from 76 to 100 are classified as "Low Risk."

Other commercial credit reporting agencies may provide several business credit scores or risk indicators. The available scores, calculation methods, and reporting criteria depend on the agency and the specific product.

The FICO Small Business Scoring Service (SBSS) is another example. Its scores range from 0 to 300, and creditors may use the score when evaluating certain small-business financing applications.

How to Check Your Business Credit Score Step by Step

The process for checking a business credit score depends on which commercial credit reporting agency maintains the company's information.

1. Check Whether Your Business Has a D-U-N-S Number

For services that use a D-U-N-S Number, start by checking whether your company already has one.

If it does not, a D-U-N-S Number can be requested through the standard registration process at no cost.

Having the identifier itself does not guarantee a strong credit profile. It primarily helps identify the business within commercial databases.

2. Access Your Business Credit Report

Some commercial credit reporting agencies offer businesses access to their credit reports or scores through paid services. Other providers may offer limited access to basic business credit information, free monitoring, or score-change alerts.

The information available and the cost depend on the provider and the type of report selected.

3. Consider Using a Business Credit Monitoring Service

Some third-party services combine business credit information from multiple reporting agencies into a single account. This can make it easier to monitor changes across different databases.

However, coverage varies. A service may not include every commercial credit bureau, and the information displayed may differ from the reports available directly from individual agencies.

What to Look for After You Check Your Business Credit

Checking the score alone is not enough. The underlying business credit report can provide more useful information about why the score looks the way it does and whether the reported information is accurate.

Payment History

Review whether payments to lenders and suppliers are being reported accurately and whether they were made on time.

Business Information

Confirm that basic company information, including the business name, address, and tax identification information where applicable, is accurate. Errors in identifying information can potentially cause records to be associated incorrectly.

Credit Utilization and Outstanding Balances

Review outstanding balances and the amount of available credit being used. Some scoring models consider credit utilization or related measures when assessing business credit risk.

Trade Lines

Trade lines represent reported business credit accounts and payment relationships. Reviewing them can help identify whether relevant supplier and creditor activity is being recorded correctly.

Public Records

Check public-record information for accuracy and make sure outdated or incorrect information is addressed through the appropriate reporting agency's dispute or correction process.

How to Improve Your Business Credit Score

Building or improving business credit generally takes time. There is no single action that can immediately create a strong business credit profile.

The most important habit is consistent payment behavior. Paying creditors that report payment activity on time, or earlier when appropriate, can help establish a positive payment history. Some scoring models specifically incorporate payment timing into their calculations.

Businesses should also monitor their credit reports regularly to track changes over time.

Another way to strengthen a business credit profile is to establish relationships with vendors and creditors that report payment activity to commercial credit bureaus. Reported accounts can provide additional data points for a business credit profile, although simply opening an account does not guarantee a particular score.

Businesses should focus on building a consistent record of responsible credit use and accurate reported information rather than pursuing a specific score immediately.

Frequently Asked Questions

1. Is checking my business credit score free?

It depends on the provider. Some services offer free access to basic business credit information, while detailed reports, monitoring, or additional scores may require payment.

2. How often do business credit scores update?

There is no universal update schedule. Business credit information can change when lenders, suppliers, or other reporting sources submit new information. The timing depends on the reporting source and scoring model.

3. Does checking my own business credit score hurt it?

Generally, checking your own business credit report does not negatively affect your score. Some commercial credit reporting agencies treat self-checks as soft inquiries rather than credit applications. However, businesses should check the specific policies of the reporting agency they use.

4. How long does it take to build a business credit score?

There is no fixed timeline. It depends on factors such as how long the business has been operating, whether creditors and suppliers report payment activity, how much information is available, and which scoring model is being used.

5. Do business and personal credit scores affect each other?

Business and personal credit are generally maintained separately. However, lenders may review both when evaluating certain business financing applications, particularly when a business owner provides a personal guarantee or when the lender's underwriting process includes personal credit information.

Conclusion

For business owners, reviewing the underlying credit report is an important part of understanding and managing business credit. Building a stronger profile takes time.

This article is intended for informational purposes only and does not constitute legal, financial, investment, or other professional advice, nor does it constitute a recommendation of any product or service. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. It has not been reviewed by any regulatory authority in any jurisdiction. Bettr makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal, financial, or other professionals for advice tailored to their specific situation. Bettr does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.