What is a good business credit score? Everything you need to know

You know a good personal credit score is critical for getting the best rates on everything from credit cards to mortgages and car loans. But did you know your business credit rating is just as important to the health of your business?

In fact, 85% of entrepreneurs use credit cards to fund their businesses—and nearly 70% have tapped personal credit cards to bridge business costs. If you find yourself asking questions like, “What is a good business credit score?” or “How do I establish business credit?,” you’re not alone. Consider this your go-to guide to building a solid business credit report.

What is a good business credit score?

Why your business credit report matters

How to establish a business credit score

How to improve your business credit score

How business credit scores are calculated

Business credit vs. personal credit

How to check your business credit score

Grow your business with confidence

What is a good business credit score?

Understanding a good credit score is one major key to overall business success. After all, having a good business credit score can lead to lower interest rates, access to the necessary financial resources needed to grow your business, and better trade credit. 

Good (or high) business credit scores are considered a low risk for lenders and creditors, while low credit scores are considered risky for lenders. Therefore, it’s critical that you not only nurture your business credit score but also understand the ins and outs of what constitutes a good credit score. 

Below we’ve listed the four main business credit scoring systems, along with the business credit score ranges that are considered favorable:

Dun & Bradstreet PAYDEX

It focuses on payment history with suppliers and vendors. Scores closer to 100 show consistent on-time payments, while lower scores signal late or missed payments. Lenders look for a business credit score of 80+ on a 0 to 100 scale. 

Intelliscore Plus from Experian

It uses more than 800 variables to predict the likelihood of serious delinquency, weighing heavily on repayment behavior and outstanding balances. Lenders look for a business credit score of 76+ on a 0 to 100 scale. 

Equifax Business Credit Report

It evaluates payment trends, business demographics, and public records such as bankruptcies, liens, or judgments. Lenders look for a business credit score of 570+ on a 101 to 992 scale.

FICO’s Small Business Score

The FICO® Small Business Scoring Service℠ uses a hybrid model that combines your business credit, personal credit, and financial data. The Small Business Administration (SBA) often uses it when evaluating loan applications. Lenders look for a business credit score of 140+ on a 0 to 300 scale. 

Why your business credit report matters

While you might know why having a good personal credit score is important, the need for a solid business credit score might not be so obvious. 

If you’re just getting started in your small business, you might still be using your personal credit to do the necessary borrowing for your company. 

Some reasons to establish business credit include: 

• Account separation: By establishing a business credit profile, you essentially add a layer of separation between your personal and business finances. This, in turn, makes it easier for you to track your expenses appropriately for tax purposes. 
• Increase in borrowing power: By demonstrating strong business credit, you might be considered for larger amounts of credit. This can prove beneficial for things like business expansion or renovation.
• Easier financing: A solid credit profile can help increase your chances of getting small business funding with favorable interest rates. 
• Better insurance rates: Insuring your small business can get expensive. Having a good business credit score is one way to keep your rates low. 
• Access to opportunities: Many corporations and government agencies require vendors to meet certain credit standards. A solid score can help you qualify for contracts and SBA loans and attract investors or new partners.

Suppliers and lenders will check your business credit to: 

• Elect to do business with your company
• Decide whether to give you small business loans
• Determine insurance premiums and interest rates
• Establish payment terms
• Choose whether your small business bank account should be sent to a third-party collection agency, should you become delinquent

The risks of poor business credit

On the flip side, a poor business credit score can hold your business back. You may face denied financing, higher interest rates, or difficulty opening vendor accounts. In some cases, you might have to rely on personal credit to keep operations running, increasing your financial risk.

Also, certain industries face stricter requirements:

• Construction companies often need strong credit to qualify for bonding and bid on projects.
• Trucking businesses rely heavily on vendor credit for fuel, maintenance, and repairs.
• Retailers depend on supplier credit to stock inventory, meaning poor credit can quickly choke cash flow.

Your business credit report can have a profound effect on your small business’s success, influencing how lenders, suppliers, partners, and even customers view you. Taking the time to build and maintain strong business credit will pay off in long-term opportunities and stability.

How to establish a business credit score

Now that you understand why having a good business credit score is important, you might be wondering how to establish a business credit score in the first place. Some of the steps are similar to setting up your business, and include:

1. Establish a business structure

If your business is a sole proprietorship, keeping your business and personal finances separate and establishing stand-alone business credit can be challenging. Consider whether forming an LLC or corporation could be the right structure for your business.

2. Register for an Employer Identification Number (EIN) 

This nine-digit number, like a Social Security number for businesses, is assigned by the IRS. Your EIN is needed to apply for a business permit, open a business bank account or credit card, and engage in other various business activities. 

3. Separate your business and personal finances

Opening independent business banking accounts and credit card accounts establishes you as a legitimate business and can streamline accounting and tax preparation.

4. Apply for a D-U-N-S number

Dun & Bradstreet, one of the major credit bureaus, requires you to register for a free D-U-N-S number before it can start tracking your credit activity. This is a critical first step in building your business credit profile.

5. Work with vendors that extend credit

Many office supply companies, wholesalers, and service providers offer Net-30 accounts, which give you 30 days to pay your invoice. These trade lines are often reported to the credit bureaus and help build your payment history. Start small with one or two vendors and pay invoices early to strengthen your profile.

6. Use a business credit card

Beyond providing financing, a business credit card helps you manage cash flow, track expenses, and build credit history. Consistent, on-time payments can boost your score, while separating charges makes accounting far easier.

7. Obtaining a business loan 

Business loans and lines of credit are powerful tools for funding necessary expenses, such as hiring and marketing, or covering unexpected emergencies without tapping a high-interest credit card. They also present an excellent opportunity to build your business credit rating.

How to improve your business credit score

Similar to personal credit, improving your business credit score requires a mix of responsible habits and proactive monitoring. The key is to build a strong history and make sure it’s accurately reported.

Make timely payments 

Payment history is the single most important factor in your score. Always pay suppliers, creditors, and lenders on or before the due date. Even one late payment can significantly lower your rating.

Building a strong balance sheet to make sure that funds are collected and disbursed on time is critical to all aspects of your business, including your ability to build and maintain a good business credit score.

Work with partners who report to the business credit bureaus

Not all vendors report payment activity. Verify that your suppliers report to Dun & Bradstreet, Experian, or Equifax. If they don’t, consider adding a vendor who does, so your positive payment history shows up on your report.

Pay down outstanding balances

Credit utilization, or the amount of credit you’re using relative to what’s available, is a major factor in your score. Aim to use less than 30% of each credit line. Start by paying off high-interest accounts first.

Keep accounts open

Even if you don’t use a given card anymore, closing too many accounts limits how much credit you have available and can also impact your score. It might be worth it to keep a credit card open even if you don’t use it often anymore, and potentially even keep one recurring bill—say, your business cell phone—to keep it active.

Talk to your creditors 

Managing the finances of a small business can be tricky. After all, if a client doesn’t pay you in a timely manner, you may not be able to pay the creditors you owe. 

If you’re facing a cash crunch, communicate with creditors early. Many will work out payment plans rather than report late payments, but use this sparingly to avoid damaging your reputation.

Regularly monitor your business score and dispute any errors

Unlike personal credit, business credit reports aren’t free. Consider using credit monitoring tools like Nav, Experian Business, Dun & Bradstreet, or CreditSignal to track changes and set alerts for suspicious activity. This helps you act quickly if issues arise.

Whether it’s a misapplied payment or an incorrect public record, mistakes can happen. Each bureau has a process for disputing errors:

• Dun & Bradstreet: Submit updates through their iUpdate system.
• Experian: File disputes online with documentation.
• Equifax: Contact their Business Customer Care with supporting evidence.

Regularly checking your reports ensures errors don’t drag down your score unnecessarily.

Diversify your credit mix

Using different types of credit (like vendor accounts, business credit cards, and small loans) demonstrates that you can responsibly manage multiple forms of borrowing. This diversification can strengthen your score over time.

Consult a small business advisor

Sometimes, improving your credit score is about knowing which steps will have the most impact on your unique situation. 

A small business advisor can review your financials, help you build a stronger balance sheet, and guide you toward financing options that make sense for your business. They can also connect you with lenders or programs that are more likely to report positive activity to the credit bureaus, helping you strengthen your score faster.

How business credit scores are calculated

Business credit scores are based on specific factors that signal to lenders and suppliers how risky (or reliable) your company is. 

While each bureau uses its own model, most consider these elements:

• Payment history: On-time payments are the strongest indicator of reliability. Late or missed payments can quickly drag down your score.
• Credit utilization: Using too much of your available credit suggests cash flow struggles. A lower utilization rate shows you’re managing credit responsibly.
• Business age and public records: Older businesses with clean records typically score higher. Bankruptcies, liens, or judgments can significantly lower your rating.
• Credit mix and inquiries: Having a variety of credit types (loans, vendor accounts, credit cards) shows you can handle multiple financial responsibilities. However, too many recent inquiries may be a red flag.

In short, consistency, low debt usage, and clean records are the foundation of a strong business credit score.

Business credit vs. personal credit

It’s easy to confuse personal and business credit, especially if you’re just starting out, but they play very different roles.

• Why both matter: For small businesses or startups, lenders often look at both personal and business credit. Strong personal credit can help you qualify early on, while strong business credit builds independence over time.
• How they’re linked in the SBSS model: The FICO Small Business Scoring Service (SBSS) combines personal and business credit data into a single number. This score is widely used by the SBA when reviewing loan applications.
• Risks of relying only on personal credit: Using your personal credit for business borrowing can blur financial lines, limit how much you can borrow, and increase personal liability. Building business credit protects both your company and your personal finances.

How to check your business credit score

Unlike personal credit reports, business credit reports aren’t free. Still, it’s worth monitoring your score regularly so you can spot errors, track progress, and catch potential fraud.

Here are the main ways to check:

• Dun & Bradstreet: Requires a free D-U-N-S number. Paid packages start around $15/month for CreditSignal alerts.
• Experian Business: Offers one-time reports starting at about $40, or ongoing monitoring through subscription plans.
• Equifax Business: Provides individual credit reports and monitoring services for a fee.
• Nav: A third-party platform that offers free summaries of your business credit and paid plans with more detailed insights.
• It’s important to note that your FICO SBSS score isn’t directly available to business owners. Instead, it’s accessed by SBA lenders and banks when you apply for financing.

Grow your business with confidence

A strong business credit score is a strategic advantage that opens doors to new opportunities and builds credibility with lenders, vendors, and partners. With solid credit, your business can grow faster, negotiate better terms, and weather financial challenges with confidence.

Once you’ve taken steps to build your score, QuickBooks can help you put it to work. The QuickBooks Line of Credit offers fast, flexible funding directly within your account, giving you access to capital when you need it most. Pairing smart credit habits with tools like QuickBooks financing can give you the foundation and flexibility to scale your business on your terms.