How Business Credit Actually Works

Your business builds a credit reputation that is separate from your personal credit. Lenders, suppliers and insurers use it to decide whether to extend terms, how much, and at what price.

The three business bureaus

• Dun & Bradstreet (D&B) issues your DUNS number and calculates the PAYDEX score (1–100), which is driven almost entirely by whether you pay on time or early.
• Experian Business produces the Intelliscore Plus (1–100), blending payment history, credit utilization and public records.
• Equifax Business reports payment index, credit risk and business failure scores.

The four steps to a real business credit file

1. Separate the business legally — form an LLC or corporation, get an EIN, and open a dedicated business bank account.
2. Get findable — register for a DUNS number and make sure your business name, address and phone are consistent everywhere.
3. Open reporting tradelines — start with net-30 vendors that report to the bureaus, then graduate to revolving business credit.
4. Pay early, keep utilization low — a PAYDEX of 80 means you pay on the due date; paying early pushes you toward 100.

Why it matters

A strong business credit file means you can borrow in the company's name — protecting your personal credit, unlocking larger limits, and qualifying for better rates. It's the foundation every funding decision is built on.