How to Read a Business Credit Report and Get Your Score

A good business credit score offers many benefits. It can help you secure business financing, establish better partnerships, get lower interest rates from lenders, get better terms from vendors and insurance providers, and even increase the value of your business.

It’s an important number to know if you’re a small business owner.

Your business credit score is different from your credit report, but to understand one, it’s important to understand the other. So how do you find your business credit score? How do you read a business credit report? Here are a few things you should know before you get started.

How To Read a Business Credit Report

To read your business credit report, you’ll need to scan the key sections, including your scores, payment history and public records, so you can spot risks, track your credit health and better manage your business’s finances. Your business credit report will likely look a little different at each bureau, but they’ll generally contain the same breakdown of sections and information.

Business information. Your credit report will likely contain specific background information about your company. It will list things such as your location, contact information, any parent companies or subsidiaries, business size and years in business.

Business credit scores and credit ratings. Your scores may also be detailed in your business credit report. Depending on which bureau you’ve received your credit report from, the ratings and score may have slightly different meanings, but in general they help evaluate the credit and financial health of your business.

Credit summary. This section will show things like the number of established tradelines, total amount of credit available, new business credit inquiries, credit utilization and balances.

Payment history. Your business credit report will also have detailed information about your repayment history. You’ll be able to see payments made on your business credit card, small business loans, invoices owed to vendors and more.

Public records. Your credit profile will also include any public records like Uniform Commercial Code (UCC filings), liens and debts sent to collections.

How To View Your Business Credit Reports and Check Your Score

To access your business credit report, you’ll need to contact each of the three major business credit bureaus and purchase your report. Unlike a personal credit report, you often have to pay to access your business credit report. However, these reports can help you improve the financial health of your company and help you build business credit. It may seem a little overwhelming, but it’s not as complicated as you may think.

In some cases, your business credit report will also include your business credit score. In other cases you will need to request it separately. Unlike your personal credit score, you may need to pay to access the information — and your business credit score and business credit report will likely look different with each of the bureaus. With OnDeck, you can check your business credit score for free — no obligations and no account required.

Equifax Business

An Equifax business credit report includes several key scores that lenders use to assess your business’s credit health. These typically include:

• PayNet MasterScore (450 – 800). PayNet is owned by Equifax and they use payment histories from things like loans, leases and lines of credit to calculate a business credit score.
• Business Credit Risk Score (101 – 992). This number predicts the likelihood of delinquency when borrowing.
• Business Failure Risk Score (1,000 – 1,610). This score estimates how likely it is your business is to fail or succeed in the next 12 months
• Payment Index (0 – 100). This score gives lenders insight into your payment history.

To access your credit report from Equifax, you can request it directly through Equifax and you may need to pay. But you can also purchase a bundle which can save money if you want to access your report multiple times. They also offer a credit monitoring service that can help you track your progress and prevent fraud.

Dun & Bradstreet

To check your business credit score with Dun & Bradstreet, you may need to set up a DUNS number. Your business may not automatically be added to their system, so your business credit file will likely be incomplete until you sign up. Getting a DUNS number is free, though it can take around 30 days.

After registering, Dun & Bradstreet will calculate your Paydex score — which is your business credit score. You may also receive a business failure score, a delinquency score and some other ratings as well. Each of these ratings is an indicator of your business’s financial health.

Dun & Bradstreet has a number of different tiers that allow small business owners to monitor their business credit.

• CreditSignal. This is the free tier. You won’t get full access to your report, but you’ll get your Paydex score and will be notified of credit inquiries and any changes to your score.
• CreditSignal Plus. This tier costs money, but you’ll have access to five scores and ratings including your Paydex Score and Delinquency Risk Score.
• CreditMonitor. This is their most expensive option. With this option you get full access to your business’s credit file and access to all your business’s financial health scores and ratings.

Experian Business

You can also find your business credit score and report through Experian. You’ll need to pay a fee to access your information, but you’ll receive your Experian business credit score, your financial stability risk rating, payment trends and history of your business accounts.

• Experian CreditScore Report. For a one time fee you can get your business credit score and a summary business credit report.
• ProfilePlus Report. A little more expensive, but for a one time fee you’ll get your business’s credit score and a more detailed credit report.
• Business Credit Advantage Plan. This plan is a yearly subscription, but you’ll have ongoing access to your business credit score and report so you can monitor your business’s creditworthiness and financial health.

OnDeck

For your business credit score, you can check it for free through OnDeck. This will provide a snapshot of your credit health and where your business stands. You’ll just need to fill out some basic information about your business such as business name, address and time in business. Then, you’ll receive your score within a few days — at no cost.

What’s a Good Business Credit Score?

Your business credit profile may look different at each of the three major business credit bureaus. They each have their own system of ratings and scores they use to evaluate your company.

Equifax PayNet Score. This is a very commonly used score and it ranges from 450 to 800. While there’s no defined scale, in general anything over a 660 is considered a “good” business credit score. As with most scores, the higher the number the better your score is considered.

Equifax Business Credit Score. Equifax actually uses three scores to rate your business’s credit. The other bureaus may also offer other ratings and scores as well, but they also offer over all Paydex or Intelliscores.

• Your business credit risk score is on a scale from 101 to 992 and it predicts how likely you are to be delinquent.
• Your business failure score rates the possibility of your business declaring bankruptcy in the next 12 months. Scores range from 1000 to 1880.
• Your payment index is based on your business’s payment history. Scores range from zero to 100, with 90 to 100 meaning you make your payments on time.

Dun & Bradstreet Paydex Score. This is probably the most widely used number for your business credit score. Scores range from zero to 100. Anything over 80 is generally considered a good business credit score, while scores below 50 may signal that you’re a higher credit risk.

Experian Business Intelliscore. Business credit scores from Experian also range from zero to 100. Again, having a score of 80 or above is generally considered a good business credit score.

How Is a Business Credit Score Calculated?

Your business credit score is calculated similarly to a personal credit score — but there are a few additional factors. Also, remember that only accounts held in your business’s name will affect your business credit history. Your personal finances won’t have any effect on your business score.

Payment history. One of the biggest factors that contributes to your business credit score is your payment history. This can include payments on small business loans, business lines of credit and business credit cards, as well as invoices from vendors, insurance companies and more. A good repayment history will boost your score, but late or missed payments will damage it.

Credit utilization. This percentage is based on the amount of credit your business has used versus the total amount of credit available to you. Keeping this percentage at a reasonable rate can help your score.

Account age. Older, established business accounts (that are current) can help give your business credit score a boost.

Tradelines. A tradeline is any established credit account that appears on your credit report. Having established tradelines can show that your business is adept at handling and managing your finances.

Business age and size. Older businesses generally have higher credit scores because there is typically a lower chance that they will go under.

Industry risk. Businesses in riskier industries will usually take a hit on their credit score because of the higher risk of failure compared to more stable or “safe” industries.

Advice from the experts: What do business owners overlook most on their business credit report?

Don’t overlook the small details.

“The presence of errors or inaccuracies on the credit report is a common oversight. Small business owners should thoroughly examine their credit reports to ensure that all information is correct and up to date. Even minor mistakes, such as a misspelled name or an incorrect address, can result in credit denials or higher interest rates.

“Furthermore, small business owners should be aware of their credit utilization ratio, which is the percentage of available credit that is being used. A higher credit utilization ratio can have a negative impact on credit scores and may indicate to lenders that the company is overextended or financially struggling. To maintain a healthy credit profile, small business owners should aim to keep their credit utilization ratio below 30%

“The age of credit accounts is another important factor that is frequently overlooked. Lenders prefer long credit histories because they indicate a stable and reliable borrower. Small business owners should avoid closing old credit accounts because this reduces their credit history and may harm their credit score.

“Overall, small business owners should review their credit reports on a regular basis and pay attention to these key factors to maintain a healthy credit profile and improve their chances of obtaining financing
when necessary.”

Michael Hammelburger, CEO
The Bottom Line Group

Being thorough will help you avoid issues down the road.

“Errors on the report: Small business owners should thoroughly review their credit report for any errors that could be affecting their credit score. Errors could include incorrect personal or business information, outdated account balances, or even fraudulent activity. It’s important to dispute any errors you find with the credit bureau to have them removed from your report.

“Late payments: Small business owners should also pay close attention to their payment history. Late payments can significantly impact your credit score and could make it difficult to secure financing or credit in the future. Make sure that you’re making payments on time and that they’re being reported accurately.

“Debt utilization: Another important factor that small business owners should consider is their debt utilization. This is the amount of credit you’re using compared to the total credit available to you. Ideally, you should be using less than 30% of your available credit, as high utilization rates could negatively impact your credit score.

“Length of credit history: Small business owners should also consider the length of their credit history. A longer credit history can often be seen as a positive factor by lenders and could help improve your credit score. Make sure to keep old accounts open, even if you’re not using them, to maintain your credit history.

“Small business owners should be vigilant when checking their credit reports. Pay close attention to errors on the report, late payments, debt utilization, and the length of your credit history. By taking the time to review your credit report and address any issues, you can help ensure that you’re in good standing with lenders and improve your chances of securing financing or credit in the future.”

Jon Morgan, CEO
Venture Smarter

What Equifax offers for business credit reports and how to read them.

“Keeping an eye on your business credit is important for every business owner, and Equifax allows companies to acquire a copy of their Business Credit Report, which provides an objective view of credit risk and performance. This report summarizes your company’s credit data into financial and non-financial metrics, allowing lenders and business owners to get a better picture of your financial profile to better manage growth and secure financing.

Understanding Your Business Credit Report from Equifax.
“Predictive Scores: The report features a variety of scores, like OneScore for Commercial, which can help predict the likelihood of a business becoming delinquent. The higher the score, the lower the risk.

“Tradelines and Payment History: The report details both financial and non-financial credit accounts, showing account status, balance, past due amounts, and past payment history.

“Public Records and Inquiries: A dedicated section details any bankruptcies, judgments, or liens on file, and also includes a summary of online inquiries made about your business over the most recent 36 months.”

David Adams, Head of Commercial Product Marketing
Equifax