Why there is no single business score
Personal credit scores are built on files from three consumer bureaus that hold broadly similar kinds of data. Business credit is more fragmented. Each business bureau gathers information from the vendors, lenders and public records it has access to, so one bureau may know about accounts another does not. Each then applies its own models.
That is why a company can look strong at one bureau and thin at another. It is also why a lender’s question “what is your business credit score?” really means “which score, from which bureau?”
The main scores and what they measure
| Score | From | What it mainly reflects |
|---|---|---|
| PAYDEX | Dun & Bradstreet | How promptly the business pays the vendors and lenders that report to D&B; paying early scores higher than paying on terms |
| Delinquency and failure scores | Dun & Bradstreet | The likelihood of severely late payment or of the business failing |
| Intelliscore Plus | Experian Business | The risk of serious delinquency, using payment history and public-record data |
| Business risk and failure scores | Equifax Business | The risk of delinquency or business failure |
| FICO SBSS (Small Business Scoring Service) | FICO | A blend of business data, the owner’s personal credit and application information |
Because the scales and labels belong to each bureau and are revised from time to time, it helps to read the scale shown on the report itself rather than compare numbers across bureaus.
FICO SBSS and SBA lending
Some lenders use FICO SBSS in screening smaller loans, including some SBA-backed loans. How a lender uses it, and any minimum, is set by the lender and the current SBA rules. See the SBA’s 7(a) loan page (opens in a new tab) and our SBA loans explainer.
What tends to move business scores
The weights are not public, but the bureaus describe the same broad factors:
- Paying vendors, card issuers and lenders on time or early.
- How many trade accounts report to the bureau.
- How much of the available credit is in use.
- How long the file has existed.
- Public records such as liens, judgments and bankruptcies.
- Company size and industry, which some models use to estimate risk.
Of these, payment timing is the one an owner controls most directly. The build business credit guide covers how to get accounts that report in the first place.
Common misconceptions
- “My business has a score as soon as I register.” Usually not. A file needs reported accounts before most scores can be calculated.
- “Business credit means my personal credit no longer matters.” Many small-business lenders still check the owner’s personal credit and may ask for a personal guaranty. See personal vs. business credit.
- “One number covers every bureau.” Each bureau scores differently and may hold different data.
- “A higher score means a lender will say yes.” Scores are one input. Lenders also look at revenue, cash flow, time in business and debts already owed, as the loan-readiness guide explains.
Checking your business scores
Dun & Bradstreet, Experian and Equifax each offer ways to view a business file. Some views are free and some are paid; paid monitoring is optional and not required to have a file. The business credit monitoring toolkit page explains what monitoring products do.
When you look, check the details first: name, address, industry and owners. A score built on the wrong data is not much use. Our guide to reading a business credit report goes section by section.
For personal credit, the CFPB explains your rights to free reports and to dispute errors on its credit reports and scores (opens in a new tab) pages. Those consumer rules are written for personal reports; business bureaus each run their own update and dispute process.
How lenders use scores
A lender may pull a business score, a personal score, or both, and weigh them with bank statements, tax returns and financial statements. The CFPB’s small business lending (opens in a new tab) page describes its work on how credit is offered to small businesses. If a lender declines or offers worse terms than expected, it can help to ask which reports and scores it used.
Frequently asked questions
What is a good PAYDEX score?
PAYDEX rewards paying on terms and scores paying early higher. Dun & Bradstreet publishes the scale and what each range means, so check its current definitions.
What is FICO SBSS?
FICO’s Small Business Scoring Service is a score that blends business credit data, the owner’s personal credit and application details. Some lenders use it to screen smaller business loans.
Why are my business scores different at each bureau?
Each bureau collects different data from different vendors and lenders and uses its own scoring model and scale, so the results rarely match.
Do business credit scores affect my personal credit?
They are separate files. But lenders often check both, and some business accounts are reported to personal bureaus too, so ask each issuer how it reports.
How often do business scores update?
Scores change as new payment data and public records reach the bureau. Vendors report on their own schedules, so updates are not on a fixed calendar.