Accessing business financing in the U.S. shouldn’t feel like a gamble. Yet for many entrepreneurs, securing loans or credit lines is an uphill battle not because of a lack of revenue or growth potential, but due to a lesser-known but crucial factor: a weak or nonexistent business credit score.
Whether you’re launching a startup, growing an established company, or preparing for future funding rounds, learning how to build business credit can be a game-changer. At The Accredited Group, we’ve compiled a step-by-step guide to help U.S. business owners improve business credit scores, qualify for better terms, and unlock sustainable growth.
Why Your Business Credit Score Matters
Your business credit score is more than just a number; it’s a key indicator of your company’s financial health and credibility. Similar to a personal credit score, it reflects how responsibly your business manages debt, pays bills, and fulfills financial obligations. The difference? It’s solely based on your business’s financial activity and history, not your personal finances.
A strong business credit score can significantly improve your company’s ability to grow, operate smoothly, and weather economic challenges. Here’s what it can unlock:
- Greater loan approvals and access to larger financing amounts
- Lower interest rates on loans and better insurance premiums
- More favorable terms with suppliers, vendors, and leasing companies
- Increased trust from lenders, investors, partners, and even government agencies
In fact, businesses with strong credit are over 40% more likely to be approved for financing and may qualify for up to 3x more capital, according to the Nav Small Business American Dream Gap Report.
What Is a Business Credit Score and How Is It Calculated?
A business credit score is a numerical representation of your company’s creditworthiness, used by lenders, suppliers, insurers, and even government agencies to assess risk before extending credit or entering into financial relationships with your business. In simple terms, it helps others decide: Can this business be trusted to pay its bills on time and manage its financial obligations responsibly?
Unlike personal credit scores, which range from 300 to 850, business credit scores typically range from 0 to 100, depending on the bureau. A higher score indicates lower credit risk.
Key Agencies & Score Ranges
| Credit Bureau | Score Range | What It Measures |
| Dun & Bradstreet (D&B) | 0–100 (PAYDEX Score) | Payment timeliness to trade vendors and suppliers. Scores above 80 = early or on-time payments. |
| Experian Business | 0–100 | Credit obligations, repayment behavior, public records (liens, judgments, bankruptcies), and business background. |
| Equifax Business | 101–816 (varies) | Includes Payment Index, Credit Risk Score, and Business Failure Score. Focuses on payment history, credit utilization, and legal filings. |
How Business Credit Scores Are Calculated
Business credit scores are calculated by agencies like Dun & Bradstreet, Experian, and Equifax, each using their own models. However, they all focus on similar key factors: payment history, credit utilization, credit age, public records, and your industry.
1. Payment History
Your payment history is the most important factor. Paying on time or even early boosts your score, while late payments can hurt it, especially with Dun & Bradstreet PAYDEX score. The more on-time payments you make, the better.
2. Credit Utilization
This refers to how much of your available credit you’re using. It’s best to keep your credit utilization below 30%. High credit usage signals financial stress, while low usage shows good financial management.
3. Credit Age and Depth
A longer credit history and a variety of credit accounts (such as credit cards and loans) are beneficial. Older accounts show stability, and having a mix of credit types demonstrated experience in managing credit.
4. Public Records
Negative records like bankruptcies, tax liens, or judgments can significantly lower your score. These can stay on your record for years, even if the issue is resolved.
5. Business Size and Industry
Your industry and business size also affect your score. Riskier industries like construction may have lower scores, while businesses in stable sectors, like healthcare, may receive better scores. Larger businesses tend to have higher scores due to their financial stability.
In short, paying bills on time, managing your credit wisely, and maintaining a strong, diverse credit history are all key to improving and maintaining a good business credit score.
How to Build Business Credit Score
Whether you’re launching a new business or recovering from financial challenges, building a solid business credit score is within your reach. It’s not a quick fix, but with the right steps, you can establish a strong credit profile that helps you secure financing and build long-term success. Here’s a comprehensive guide to getting started:
1. Legally Establish Your Business
Form an LLC or corporation, obtain your EIN from the IRS, and register your business with the Secretary of State. These steps formalize your business and allow credit agencies to track your activity.
2. Open a Business Bank Account
Separating business and personal finances is essential. A dedicated bank account signals financial responsibility and is often required for applying for credit.
3. Register with Business Credit Bureaus
Get listed with Dun & Bradstreet (apply for a D-U-N-S Number), Experian, and Equifax. This ensures your credit behavior is properly tracked.
4. Work with Reporting Vendors
Not all vendors report to credit bureaus. Start with Net-30 vendors such as Uline, Grainger, and Quill, which do report. Pay early to boost your PAYDEX score.
5. Apply for a Business Credit Card
Even if you have no credit, you can qualify for secured business credit cards. Use them for small purchases and pay in full monthly to establish a positive history.
6. Monitor Your Business Credit Report
Regularly review your credit reports for errors or signs of fraud. You can check through bureaus or platforms like Nav and CreditSafe.
Best Ways to Improve Your Small and Enterprise Business Credit Score
Improving your score isn’t just about access to loans—it’s also about strategic reputation management. Looking for quicker results? Here are extra strategies for improving business credibility.
For Small Business Credit Score
Building strong credit as a small business helps establish trust with lenders, suppliers, and service providers. While small businesses may not have complex financial structures, strategic steps can significantly impact their creditworthiness.
1. Form a Legal Business Entity
Operating as a sole proprietorship limits your ability to separate personal and business credit. Creating an LLC or corporation helps establish distinct credit histories and reduces personal liability.
2. Obtain an Employer Identification Number (EIN)
An EIN from the IRS is essential for opening a business bank account and applying for business credit. It also formalizes your business’s identity with federal and state institutions.
3. Open and Maintain a Business Bank Account
A dedicated business account builds financial credibility, helps track expenses, and enables lenders to assess your financial management.
4. Use Business Credit Cards and Vendor Accounts
Apply for credit with vendors and lenders that report to business credit bureaus. Responsible use and timely payments contribute positively to your business credit profile.
5. Register with Business Credit Bureaus
Ensure your business is listed with bureaus such as Dun & Bradstreet, Experian Business, and Equifax Business. Request a DUNS number and confirm your profile is complete and accurate.
6. Pay Bills Promptly
Your payment history is one of the most important factors in your credit score. Consistently paying invoices and credit accounts early or on time enhances your score.
7. Monitor Credit Reports Regularly
Track your business credit through periodic checks with reporting agencies. Look for errors or fraudulent accounts and dispute inaccuracies when necessary.
8. Keep Credit Utilization Low
Avoid maxing out credit lines. Maintaining a low balance relative to your credit limit signals responsible credit usage and improves your credit profile.
For Enterprise Business Credit Score
Enterprise-level companies require more sophisticated credit strategies due to their size, financial complexity, and exposure to greater operational and market risks. Improving business credit at this level involves broad financial oversight and regulatory compliance.
1. Establish Strong Corporate Governance
Implement policies and oversight structures across departments to ensure accurate financial reporting and accountability. Regulatory compliance strengthens trust with credit agencies.
2. Maintain Comprehensive Financial Records
Consolidated financial statements for all subsidiaries and business units are essential for accurate credit evaluations and easier access to institutional credit.
3. Build and Manage Vendor Credit Lines
Develop relationships with key suppliers and negotiate favorable payment terms. Ensure those vendors report your payment history to credit bureaus.
4. Ensure Proper Registration of All Business Entities
Maintain updated records and business identifiers (such as DUNS numbers) for the parent company and all subsidiaries to build a cohesive and accurate credit profile.
5. Invest in Financial Infrastructure
Enterprise resource planning (ERP) systems and treasury management platforms provide visibility into company-wide financial health, allowing for timely decisions related to credit, liquidity, and debt.
6. Diversify Credit Instruments
Use commercial loans, credit facilities, or corporate bonds strategically. Manage debt maturities and comply with covenant terms to maintain strong ratings.
7. Engage with Credit Rating Agencies
For large-scale borrowing or public companies, maintaining a positive rating with agencies like Moody’s, Fitch, or S&P is critical. Ensure timely submission of financial reports and transparency in disclosures.
8. Manage Debt and Leverage Ratios Proactively
Keep enterprise-wide debt levels within acceptable industry standards, using financial metrics like Debt-to-EBITDA and interest coverage ratios as benchmarks for sustainability.
Frequently Asked Questions (FAQs)
Q. How long does it take to build business credit?
Typically 3–6 months to establish a basic score; 12+ months for robust profiles.
Q. Can I build credit without using my SSN?
Yes, by using your EIN and building a profile with vendor credit and business cards.
Q. What’s the fastest way to improve my score?
Pay vendors early, open Net-30 accounts that report, and use low utilization business cards.
Q. Do all vendors report to bureaus?
No. Only select vendors report always confirm before extending credit.
Q. Will my personal credit affect my business?
Only if you personally guarantee loans or mix personal/business accounts.
Conclusion
Your business credit score is one of your company’s most powerful assets—and also one of the most underutilized. Whether you’re seeking capital, negotiating with suppliers, or simply aiming to future-proof your operations, taking steps today to build business credit and improve your score will pay dividends.
At The Accredited Group, we specialize in helping businesses establish financial foundations that support long-term success. Start now, stay consistent, and watch your credit grow along with your business.