In my previous article, I explained how your business credit score directly impacts leasing decisions and the terms you receive. Now, let's dive into the actionable steps you can take to improve that score.

As a credit repair company owner with over a decade of experience helping businesses secure better financing, I see the same patterns repeatedly.

Companies struggle with leasing equipment, securing vendor credit, and obtaining favorable loan terms. All because they don't understand or actively manage their business credit score. The good news?

These scores can be improved faster than most business owners realize. And that’s critical, since 82% of small businesses that fail cite cash flow problems as the primary reason. Building business credit is one of the most effective ways to ease cash flow challenges.

What Is a Business Credit Score?

A business credit score measures your company's creditworthiness based on how you handle business debts and payments. Unlike personal credit scores, business credit scores are tied to your Employer Identification Number (EIN) and evaluate your business's financial behavior independently from your personal finances.

Credit Score for Businesses Policy & Legal Context

Business credit scoring systems differ depending on the country. In the U.S., business credit is primarily reported by Dun & Bradstreet, Experian Business, and Equifax Business. Each bureau has its own scoring model, and federal regulations ensure lenders use these scores responsibly when assessing financing.

If you’re based outside the U.S., you may find different bureaus or rules apply. For example, the U.K. uses agencies like Creditsafe and Experian U.K., while Canada relies on Equifax Canada and TransUnion.

That’s why it’s important to clarify which country’s credit reporting system your business falls under. For this guide, we’ll focus on U.S.-based business credit scores.

How Business Credit Scores Are Calculated

Business credit bureaus use different factors to calculate scores:

Payment History (35-40%): Your track record of paying suppliers, vendors, and creditors on time.

Credit Utilization (20-30%): How much of your available credit you're using across business credit lines.

Length of Credit History (15-20%): How long your business has maintained credit relationships.

Credit Mix (10-15%): The variety of credit types your business uses (trade credit, business credit cards, loans).

Public Records (10-15%): Bankruptcies, liens, or judgments against your business.

Business Credit Score Ranges

Different bureaus use different scoring models:

• Dun & Bradstreet PAYDEX: 1-100 (80+ is excellent)
• Experian Intelliscore Plus: 1-100 (76-100 is low risk)
• Equifax Business Credit Risk Score: 101-992 (681-992 is low risk)

Business Credit Score vs Personal Credit Score: Key Differences

Business Credit Scores:

• Tied to your EIN
• Factor in trade credit and vendor relationships
• Include business-specific data like industry risk
• Can exceed 100 in some scoring models
• Affect business lending and vendor terms

Personal Credit Scores:

• Tied to your Social Security Number
• Focus on individual consumer debt
• Range from 300-850
• Impact personal loans and mortgages
• Include personal spending patterns

The separation is crucial.

A strong business credit profile protects your personal assets and creates opportunities for business growth without affecting your personal creditworthiness.

What You Can Get With a Good Business Credit Score

Better Financing Terms: Lower interest rates on business loans and credit lines. I’ve seen clients reduce their borrowing costs by 3-5% after improving their scores. Research from Nav confirms this, businesses with strong credit profiles save an average of 3–5% compared to those with weaker credit.

Higher Credit Limits: Access to larger credit lines without personal guarantees.

Vendor Credit: Net-30, Net-60, or Net-90 payment terms with suppliers, improving cash flow. In fact, companies with PAYDEX scores of 80+ are much more likely to qualify for these extended terms (Dun & Bradstreet)

Equipment Leasing: Better rates on equipment financing. As I discussed in my previous article about how credit scores impact leasing decisions, this is where the score difference becomes most apparent. For instance, logistics companies often need specialized vehicles and warehouse equipment. A strong business credit score can mean the difference between a 6% lease rate and a 12% rate on a $200,000 equipment package.

Business Insurance: Some insurers offer better rates to companies with strong credit profiles.

More Benefits of a Strong Business Credit Score

Beyond better financing and leasing terms, strong business credit can also help you:

• Win Contracts: Many large corporations and government agencies review supplier credit profiles before awarding contracts. A solid credit history can make your business a more attractive partner.
• Attract Investors or Partners: A clean financial record shows stability and reliability, which can boost confidence among potential investors or joint venture partners.
• Negotiate Better Terms: With a proven history of timely payments, you can often negotiate lower deposits or extended payment terms with suppliers.

Steps to Improve Your Business Credit Score

1. Establish Your Business Credit Foundation

To build business credit, the first step is getting a D-U-N-S number from Dun & Bradstreet. This unique nine-digit identifier is free and allows vendors and lenders to report your payment history to D&B. You can request one directly on the Dun & Bradstreet website.

Also, make sure your business is legally registered as an LLC or corporation, and that you have an Employer Identification Number (EIN) from the IRS. These create separation between your personal and business credit.

2. Build Initial Trade Credit Relationships

Start with vendors that report to business credit bureaus. Office supply companies, telecommunications providers, and fuel companies often report payment history. For example, a Logistics company colorado might establish trade credit with their fuel supplier, telecommunications provider for their fleet tracking systems, and office supply vendor for their warehouse operations.

So instead of starting with major banks, begin with vendors that extend small lines of credit and report to business credit bureaus. Beginner-friendly vendors include:

• Uline (shipping and packaging supplies)
• Quill (office supplies)
• Grainger (industrial supplies and safety equipment)

These vendors often approve new businesses and report to bureaus, which helps establish a positive credit history. Pay invoices on time, or better yet, early, to strengthen your profile.

3. Open Business Credit Cards

Apply for business credit cards and use them for regular business expenses. Keep utilization below 30% and pay balances in full monthly.

4. Monitor and Dispute Inaccuracies

Check your business credit reports quarterly. I regularly find errors that drag down scores by 20-50 points. Common issues include:

• Payments reported late when they were on time
• Accounts that don't belong to your business
• Outdated negative information

Regular monitoring is key. Here’s how to request reports:

• Dun & Bradstreet: D&B Credit Monitor
• Experian Business: Experian Business Reports
• Equifax Business: Equifax Business Reports

Check your reports at least quarterly. If you spot errors, file a dispute directly with the bureau online. Even small mistakes, like an incorrectly reported late payment, can lower your score significantly.

5. Diversify Your Credit Mix

Use different types of business credit: trade credit, business credit cards, equipment financing, and business lines of credit. This shows lenders you can manage various credit types responsibly.

6. Pay Bills Early When Possible

Business credit scoring heavily weights payment timing. Paying 10-15 days early can boost your PAYDEX score significantly compared to paying on the due date.

Common Mistakes to Avoid

Don't mix personal and business expenses on business accounts. This can hurt both your personal and business credit scores.

Don't ignore small vendor accounts. A $50 monthly phone bill paid late can impact your score just as much as a larger account.

Don't close old business accounts in good standing. Length of credit history matters.

Business Credit Score FAQs

How long does it take to improve a business credit score?
With consistent payments and active credit building, some businesses see improvements within 3–6 months. However, significant changes usually take 12–24 months of steady financial behavior.

Can you build business credit without using personal credit?
Yes. By using your EIN, applying for vendor accounts that report to business bureaus, and opening business credit cards in your company’s name, you can build business credit independently of your personal score.

What is a good business credit score to get a loan?
It depends on the bureau:

• PAYDEX: 80+ is considered excellent.
• Experian Intelliscore: 76–100 signals low risk.
• Equifax: 681+ is typically low risk.

Lenders usually want to see scores in the “low risk” range before extending favorable loan terms.

The Bottom Line

Improving your business credit score takes time and consistency, but the financial benefits are substantial, especially when it comes to leasing decisions, as outlined in my previous article. Companies with excellent business credit access better financing terms, higher credit limits, and greater financial flexibility. And since small businesses account for 44% of U.S. economic activity (SBA), access to affordable credit isn’t just about survival. It’s about fueling growth in the entire economy.

As someone who has helped hundreds of businesses improve their credit profiles, I can tell you that businesses that actively manage their credit scores typically see 15-30% better financing terms and 40-60% higher approval rates for business credit applications.

The steps outlined here directly address the credit challenges I discussed in my article about leasing decisions. Start building your business credit today. Your future financing and leasing needs depend on the foundation you create now.