What is a good business credit score?
In concept, it’s simple—the same way you as an individual have a credit score, your business also has one. This number shows vendors, lenders and partners that they can trust you when you do business together. But what constitutes a “good” business credit score, how is it calculated and how can you improve yours?
An impressive score can open doors to better financing options, lower interest rates and stronger vendor relationships. Keep reading to learn more about what a good business credit score is and what steps you can take to improve your business credit score.
What you’ll learn:
- A good business credit score will depend on the scoring model.
- There are three main business credit bureaus, each with its own way of scoring and reporting: Dun & Bradstreet (D&B), Experian® and Equifax®. FICO® Small Business Scoring Service℠ (SBSS) is another credit-scoring model used to evaluate business creditworthiness.
- D&B and Equifax focus heavily on payment history, while Experian and FICO SBSS consider payment history along with other financial factors.
- Improving a business credit score depends on the scoring model, but it typically comes down to paying bills on time, managing your credit responsibly, keeping debt low and maintaining a positive financial history.
Good business credit scores by bureau or reporting company
Lenders see your business credit scores as a sign of how financially reliable you are. A higher score can boost your chances of securing larger loans or lines of credit—often with better terms—because it shows you’re likely to make payments on time.
A strong credit score tells lenders your business:
- Pays bills on time
- Uses credit responsibly
- Maintains steady revenue
Several major credit bureaus calculate your business credit score and provide business credit reports—each with its own scoring model and criteria. Here’s a look at what each one considers a “good” score and how it might impact your financing options.
Dun & Bradstreet
D&B uses business data to create a PAYDEX score—its benchmark for how reliably a business pays its bills. PAYDEX scores range from 1 to 100. According to this scale, a good business credit score falls between 80 and 100. In this range, a business is considered low risk.
PAYDEX scores fall into three risk categories, as seen below:
| D&B PAYDEX: Ranges and rating |
What it means |
| Good (low risk): 80–100 |
This score range indicates timely or early payments:
|
| Fair (moderate risk): 50–79 |
This score range indicates payments made 15 to 30 days late:
|
| Bad (high risk): 0–49 |
This score range indicates payments that are more than 60 days late:
|
FICO SBSS
The FICO SBSS score helps evaluate how creditworthy small businesses are when they’re applying for funding—including Small Business Administration (SBA) 7(a) loans. The score ranges from 1 to 300, and the higher your score, the lower the risk for lenders and the better your chances of getting approved.
A score of 140 or higher is usually the minimum needed to pre-qualify for an SBA 7(a) loan—making it an important milestone for businesses looking for funding. While 140 gets you in the door, scores of 191-210 are considered strong. They show good financial management and can improve your chances of securing better loan terms.
FICO SBSS scores fall into four scoring categories:
| Score range | Rating | Description |
| 1–160 | Poor | Indicates a high risk of default or late payments |
| 161–190 | Fair | Shows moderate risk |
| 191–210 | Good | Reflects responsible credit management and low risk |
| 211–300 | Excellent | Demonstrates exceptional creditworthiness and minimal risk |
FICO SBSS scores are based on a mix of factors that paint a full picture of a business’s financial health. This includes both personal and business credit scores, assets and liabilities, cash flow and revenue. Other factors, like how long the business has been around and whether there are any liens or judgments, also play a role in the final score.
Experian
Business credit scores, like Experian’s Intelliscore Plus℠, are public, so lenders, partners and even competitors can view your business’s credit profile. The scores range from 1 to 100—with higher scores indicating lower risk. Typically, any score between 76 and 100 is considered good.
Experian’s Intelliscore Plus uses a data-driven formula that looks at factors like outstanding balances, credit usage, payment history, bankruptcies and general business information, like how long you’ve been in business and the size of your operation.
The ranges are categorized as follows:
| Range | Risk level |
| 76–100 | Low (Good) |
| 51–75 | Low to medium |
| 26–50 | Medium |
| 11–25 | Medium to high |
| 1–10 | High |
Equifax
Equifax has three separate business credit scores, each focused on a different part of your business’s financial health:
-
Credit Risk Score: Predicts the likelihood of delinquency or business failure by considering factors like credit history, credit usage and more. Higher scores mean lower risk.
-
Payment Index Score: Measures how reliably a business pays its bills, using a scale from 1 to 100. The higher the score, the more consistent the on-time payments.
-
Business Failure Score: Estimates the chances of a business closing within the next 12 months, based on outstanding debt, payment habits and other risk factors.
What’s considered a good score for each varies:
| Score type | Score range | Good score range |
| Credit Risk Score | 101–992 | 700–992 |
| Payment Index Score | 1–100 | 90–100 |
| Business Failure Score | 1,000–1,880 | 1,315–1,880 |
How to improve your business credit score
Improving your business credit score will depend on the specific scoring model, as each evaluates different factors:
- D&B: This model focuses on payment history, so paying vendors on time—or even early—is key. Building trade lines with suppliers who report your payments to credit bureaus can also help boost your credit profile.
- FICO SBSS: Since this score looks at both personal and business credit, it’s important to keep strong scores in both areas. Plus, separating your personal and business credit helps build a clear credit profile for your business. Keeping debt low and using credit responsibly can also help improve your score.
- Experian: Credit utilization and outstanding balances play a big role in this model. Avoid maxing out your business credit cards or lines of credit, and keep balances low by paying them off regularly and staying within your credit limit.
- Equifax: This score looks at your payment history, public records and overall financial health. Making timely payments and steering clear of liens, judgments and other negative records are key to maintaining a strong Equifax score.
Key takeaways: Good business credit score
What counts as a “good” business credit score really depends on the scoring model. D&B, FICO SBSS, Experian and Equifax all have their own ways of assessing creditworthiness. D&B and Equifax focus more on payment history, while Experian and FICO SBSS take a broader look, considering things like credit utilization, debt levels and your overall financial history, along with payment performance.
No matter the scoring model, improving your business credit score will generally involve:
- Paying bills on time
- Managing credit wisely
- Keeping debt low
- Maintaining a solid financial track record
If you’re ready to start building your business credit, check which Capital One business cards you’re pre-approved for to find the best options for your business—without any impact to your credit.
