How business credit is evaluated
I received a question from a reader today about business credit. He asked, I was wondering how business credit is evaluated. Is my Dunn’s number the main number that details my credit, or is it my personal credit score? I’m confused on this topic.”
Business credit can often stump business owners. Many don’t know they have a business credit score. But there’s a business credit score that measures your business’ financial health similar to how a personal credit score measures your individual financial health.
Business credit scores are measured primarily by 3 agencies: Dun&Bradstreet, Experian Business, and Equifax Business. How they measure business credit varies among the 3 agencies. Dun&Bradstreet’s (D&B) business credit score, called the Paydex score, is the most popular business credit score. It ranges from 0 to 100, and generally anything above 80 is considered good.
In order to get a D&B score, you need to establish a business credit file by getting a DUNS number. You can do this for free on D&B’s website.
The best ways to improve your business credit are paying bills on time and opening a business bank account or business credit card and responsibly using it. For more tips, see our article.
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
355 Lexington Avenue, 18th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.