Business Credit Score.
In plain English
A business credit score is a number that rates how likely your company is to pay its bills and debts on time. It is tracked by business credit bureaus like Dun & Bradstreet, Experian, and Equifax, separate from your personal credit score. Lenders, suppliers, and landlords use it to decide whether to offer your business a loan, payment terms, or a lease, and at what rate. Unlike personal credit scores, the scales vary by bureau, so there is no single number everyone uses.
01Why it matters
A strong business credit score can get your company better loan rates and supplier terms, and it lets you borrow for the business without leaning entirely on your personal credit.
02The math, step by step
Dun & Bradstreet's PAYDEX score runs from 1 to 100, where higher means you pay on time or early. A landscaping company that pays every supplier invoice on or before its due date builds a high PAYDEX, so a new equipment supplier is willing to offer 30-day payment terms instead of demanding cash up front.
03What this is NOT
A business credit score belongs to the company and uses different scales and bureaus. Your personal credit score follows you as an individual, though lenders to a small business often check both.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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