Business Credit Score
A rating of a business creditworthiness from agencies like Dun & Bradstreet.
A business credit score rates a company's creditworthiness independently from its owner's personal score. Major bureaus include Dun & Bradstreet (PAYDEX, 0–100), Experian Business (0–100), and Equifax Business. Scores are based on payment history with vendors, credit utilization, company size, and public records. Building strong business credit enables larger credit lines and separates personal liability.
Example
After two years of paying vendors on time, a company achieves a Dun & Bradstreet PAYDEX score of 80, qualifying it for net-60 terms with a major supplier.
Why It Matters for Your Business
A strong business credit score lets you access larger credit lines, better terms, and financing that doesn't require a personal guarantee.
Practical Tips
- •Register for a D-U-N-S number to start building your Dun & Bradstreet profile.
- •Pay vendor bills early—PAYDEX rewards early payment with higher scores.
Related Terms
More Banking Terms
ACH
Automated Clearing House - an electronic network for financial transactions.
APR
Annual Percentage Rate - the yearly cost of borrowing including fees.
APY
Annual Percentage Yield - the real rate of return on savings including compound interest.
Bank Reconciliation
Matching bank statements with internal records to identify discrepancies.
Business Checking
A bank account designed for business transactions.
Related Financial Guides & Resources
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