What are business credit bureaus and how do they work?

Business credit bureaus are agencies that collect, evaluate, and distribute information about companies' creditworthiness. These organizations gather data about your business's financial transactions, payment history, and public records to create comprehensive credit reports. They function as financial watchdogs for the commercial world, monitoring how companies manage their financial obligations.

While consumer credit bureaus like Equifax, Experian, and TransUnion track individual credit behavior tied to Social Security Numbers, business bureaus focus on commercial entities identified by Employer Identification Numbers (EINs) and business names. They monitor how companies pay their bills, manage debt, and handle financial obligations.

The most important distinction between business and personal credit bureaus lies in accessibility. Business credit reports are public documents that anyone can purchase without your permission or knowledge. A potential supplier, competitor, or prospective partner can simply pay a fee and review your payment history, outstanding debts, and financial stability. This transparency contrasts sharply with personal credit reports, which require a permissible purpose under federal law.

Business credit bureaus operate through a systematic process of data collection, analysis, and reporting that transforms raw financial information into actionable credit intelligence. These bureaus gather data from multiple sources to build business profiles. Trade creditors report payment histories, showing whether invoices were paid early, on time, or late. Banks and credit card companies share information about loans, credit lines, and payment patterns. Public records contribute additional data, including corporate registrations, tax liens, bankruptcies, and legal judgments. Some businesses also self-report financial information to bureaus to establish or enhance their credit profiles.

Each bureau processes this information through proprietary scoring models that evaluate different risk factors. Dun & Bradstreet's PAYDEX score, ranging from 1 to 100, focuses primarily on payment promptness, with scores above 80 indicating reliable payment behavior. Experian's Intelliscore Plus, also on a 1-100 scale, predicts the likelihood of serious delinquency, while Equifax uses multiple scores, including a Payment Index and separate risk scores that forecast payment problems and business failure. These varied methodologies mean the same business might have different scores across bureaus.

The resulting credit reports and scores directly influence business decisions throughout the commercial ecosystem. Lenders use them to determine loan eligibility and interest rates, suppliers rely on them to set payment terms and credit limits, and insurers factor them into premium calculations. Strong scores can unlock favorable financing terms and higher credit limits, while poor scores may result in loan denials, prepayment requirements, or elevated interest rates.

Strong business credit unlocks tangible financial advantages that directly impact your company's bottom line and growth potential.

Easier financing

Access to financing becomes significantly easier with good business credit scores. Lenders view companies with scores above 80 on the PAYDEX scale or similar high marks on other bureaus as lower-risk borrowers. This translates to higher approval rates for loans and credit lines, often at interest rates several percentage points lower than those offered to businesses with mediocre credit. A company with excellent credit might secure a $100,000 loan at 6% interest, while one with poor credit might pay 15% or face outright rejection.

Better payment terms

Suppliers and vendors extend more favorable payment terms to creditworthy businesses. Companies with strong credit profiles often receive net-60 or net-90 payment terms, while those with weaker credit might face cash-on-delivery requirements or net-15 terms. These extended payment periods improve cash flow management and allow businesses to use supplier credit as a form of short-term financing. Additionally, vendors may offer higher credit limits and volume discounts to businesses they trust to pay reliably.

Lower costs and less personal risk

Good business credit reduces costs beyond interest rates and creates independence from personal finances. Insurance companies often offer lower premiums to businesses with strong credit, viewing them as more stable and less likely to file claims. Landlords and utility companies may waive security deposits. Most importantly, robust business credit eliminates the need for personal guarantees on business debts, protecting owners’ personal assets and credit scores from business financial challenges.

Business growth and reputation

Strong credit enhances your company's market position and expansion capabilities. Potential partners and investors view solid credit as a sign of financial stability and responsible management. This reputation can open doors to joint ventures, strategic partnerships, and investment opportunities that might otherwise remain closed. Good credit essentially serves as a business credential, signaling to the market that your company manages its obligations professionally.

Poor business credit creates a cascade of financial obstacles that can severely limit a company's operations and growth potential.

Financing challenges

Poor business credit scores drastically reduce access to capital when businesses need it most. Banks and alternative lenders typically reject loan applications from companies with PAYDEX scores below 50 or similar low ratings on other bureaus. When lenders do approve financing for high-risk businesses, they compensate by charging interest rates that can reach 20% to 30% annually, compared to single-digit rates for creditworthy companies. Many lenders also require personal guarantees, collateral, or both, putting owners’ personal assets at risk if the business cannot repay its debts.

Higher costs

Bad credit forces businesses to pay premium prices for basic services and necessities. Insurance companies may charge 50% to 100% higher premiums for general liability, property, and other coverage, viewing poor credit as an indicator of increased claim risk. Utility providers and landlords routinely demand substantial security deposits, sometimes equal to several months of service or rent, tying up capital the business needs for operations. These additional costs create a compounding effect, draining cash flow that could otherwise improve the business's financial position.

Strained supplier relationships

Suppliers protect themselves from credit risks by imposing restrictive terms on businesses with poor credit histories. Many vendors refuse to extend any trade credit, requiring cash on delivery or even prepayment before shipping goods. This eliminates the cash flow cushion that net-30 or net-60 terms provide to other businesses. Suppliers may also charge higher prices to offset their risk or refuse to work with the company entirely. The inability to secure favorable vendor terms can make it impossible to compete effectively, as competitors with better credit can often move faster with more flexible payment arrangements.

Limited growth and reputation risk

Poor credit creates a negative feedback loop that stunts business growth and damages market reputation. Without access to affordable financing or supplier credit, businesses struggle to invest in expansion, inventory, or equipment upgrades. Other companies may hesitate to form partnerships or sign contracts with a business known for credit problems, viewing it as unreliable or financially unstable. In severe cases, persistent credit issues can force a business to close when it cannot secure the resources needed for daily operations. The public nature of business credit reports means these problems become visible to anyone willing to pay for a report, potentially deterring customers, partners, and investors.

Three major bureaus dominate the US business credit reporting landscape. Each uses distinct scoring methodologies and serves slightly different market segments.

Dun & Bradstreet

Dun & Bradstreet is the oldest and most established business credit bureau, founded in 1841. Its global database exceeds 500 million business records. D&B's influence extends particularly deep into government contracting and enterprise supply chains, where its reports often serve as the primary creditworthiness measure.

The bureau's signature identifier, the D-U-N-S Number (Data Universal Numbering System), assigns each business a unique nine-digit code. Many large corporations and government agencies require vendors to have a D-U-N-S Number before considering contracts or extending credit. Obtaining this number is free and represents the first step in establishing a credit file with D&B.

D&B’s PAYDEX score remains its most widely recognized metric, ranging from 1 to 100 based primarily on payment promptness. Scores of 80 or above indicate on-time payments and low risk, while scores below 50 suggest significant payment delays. A PAYDEX of 90 or 100 shows the business pays early. Beyond PAYDEX, D&B offers additional assessments, including the D&B Rating (combining financial strength and composite credit appraisal) and specialized scores like the Delinquency Predictor and Failure Score that estimate risks of late payments or business closure.

Experian Business

Experian Business operates as the commercial division of Experian, leveraging its consumer credit expertise to assess business creditworthiness. Banks and alternative lenders rely heavily on Experian's business reports when evaluating loan applications, particularly for small and medium-sized enterprises.

The Intelliscore Plus is Experian's flagship business credit score, ranging from 1 to 100, with higher scores indicating a lower default risk. Scores above 76 suggest low risk, while scores below 25 signal high probability of serious delinquency within 12 months. Intelliscore Plus incorporates multiple factors, including payment history, outstanding balances, credit account ages, and public records to generate its risk assessment.

Experian provides comprehensive business credit reports featuring firmographic data, detailed credit account histories, collection records, and public filings alongside the Intelliscore. They also calculate a Financial Stability Risk Score on a 1-5 scale, with 5 indicating highest risk of business failure. This dual-score approach allows lenders to evaluate both short-term payment risk and longer-term business viability. Many financial institutions appreciate Experian’s ability to cross-reference business and consumer data, providing a more complete picture of small business owners who often intertwine personal and business finances.

Equifax Business

Equifax Business serves as Equifax's commercial credit arm, maintaining credit files on businesses formally registered as corporations or LLCs with established credit relationships. Banks, leasing companies, and trade creditors commonly pull Equifax reports alongside other bureau data for a risk assessment.

Equifax employs multiple scoring metrics within its business credit reports. The Payment Index, ranging from 0 to 100, mirrors D&B's PAYDEX by measuring payment timeliness, with 100 indicating consistent on-time payments. The Business Credit Risk Score, ranging from 101 to 992, predicts the likelihood of severe delinquency (90+ days late) within the next 12 months, where lower numbers indicate lower risk. The Business Failure Score, spanning 1,000 to 1,880, forecasts the probability of bankruptcy or closure within 12 months, with higher scores signaling greater failure risk.

These varied scores allow creditors to evaluate different risk dimensions. A company might show strong payment history (high Payment Index) while displaying elevated failure risk due to industry conditions or financial stress. Lenders particularly value the Failure Score for long-term loans or leases, using it to assess whether a business will remain viable throughout the credit term.

Unlike personal credit reports, which federal law entitles you to review annually at no cost, business credit reports generally require payment to access.

Steps to access your report

Business owners must take proactive steps to obtain their credit reports from each bureau, as no centralized free system exists for business credit monitoring.

For Dun & Bradstreet, start by ensuring your business has a D-U-N-S Number, which you can obtain free on its website if you don't already have one. D&B offers a free service called CreditSignal that provides basic alerts about score changes, but accessing your full PAYDEX score and complete report requires purchasing a report or subscribing to their paid services like CreditBuilder. Single reports typically cost around $61.99, while monitoring subscriptions range from $149 to $199 monthly depending on features.

Experian Business sells reports through their Business Credit Advantage platform. A one-time comprehensive report that includes your Intelliscore Plus costs approximately $49.95. They also offer monitoring services starting around $29.95 monthly that include continuous access to scores and alerts for changes. Business owners can sign up online and receive their report immediately after payment.

Equifax provides business credit reports through its commercial services division. Reports can be purchased individually for prices ranging from $99.99 to $199.99, depending on the detail level, or through subscription packages. Access requires entering your business information on their portal and selecting the appropriate report type. Some third-party services, like Nav, aggregate reports from multiple bureaus, though these typically charge monthly fees.

Since each bureau may contain different information based on which creditors report to them, checking all three major bureaus provides the most complete picture of your business credit profile. A creditor might report to Experian but not D&B, or a public record might appear on one report but not others.

Correcting errors on your business credit report

Inaccurate information on business credit reports occurs frequently and can significantly damage your credit scores if left uncorrected.

Common errors include accounts that don't belong to your business, incorrect payment histories, outdated information about resolved liens or judgments, and wrong business details like addresses or industry classifications. Since these mistakes can lower your scores and hurt your credibility with lenders, it's essential to review reports carefully and dispute errors promptly.

Each bureau maintains its own dispute process. Experian allows online disputes through their business portal or via email to their support team, typically responding within 30 days. Equifax accepts disputes through its online data dispute form or by email, requiring you to identify specific incorrect items and provide supporting documentation. Dun & Bradstreet enables certain updates through their iUpdate system online, while more complex disputes may require calling their customer service or submitting dispute tickets.

When filing disputes, prepare documentation that supports your claim. For incorrectly reported late payments, provide proof of on-time payment, such as canceled checks or bank statements. For erroneously listed liens or judgments, submit release documents from the court or creditor. Clear, organized documentation accelerates the dispute resolution process.

After filing a dispute, follow up to ensure corrections are made. Bureaus should update your report and may provide a refreshed copy showing the changes. Since accurate credit reports directly impact loan approvals and interest rates, investing time in correcting errors pays dividends when you need financing.

Business and personal credit scores operate on fundamentally different scales, use distinct identifiers, and follow separate privacy rules.

Scoring scale

Business credit scores typically use ranges that differ dramatically from the familiar 300-850 scale of personal FICO scores. D&B's PAYDEX and Experian's Intelliscore Plus both range from 1 to 100, where 80 or above indicates good credit. Equifax's Business Credit Risk Score runs from 101 to 992, with lower numbers indicating lower risk, while their Business Failure Score spans 1,000 to 1,880, where higher numbers signal greater failure risk. These varied scales mean a “good” business score might be 80, 250, or 1,050 depending on the bureau and specific metric, so you’ll want to understand each system rather than applying personal credit standards.

Identification

Personal credit ties directly to an individual's Social Security Number, creating an automatic credit identity from the first opened account. Business credit requires proactive establishment using the company's EIN and formal business name. Companies must actively build credit profiles by obtaining identifiers like D-U-N-S Numbers and ensuring creditors report to business bureaus. Many small businesses operate for years without realizing they lack business credit files because they haven't taken these establishment steps.

Public vs. private

Business credit reports are public records accessible to anyone willing to pay a fee, while federal law strictly protects personal credit report access. Competitors, potential partners, or curious parties can purchase your business credit report without your knowledge or consent. This transparency means maintaining good business credit affects not just financing eligibility but also your company's public financial reputation.

Multiple scores

While personal credit scores from different bureaus typically vary only slightly using similar FICO or VantageScore models, business credit scores can differ substantially across bureaus. Each bureau uses proprietary scoring methods weighing different factors, meaning your business might simultaneously have an excellent D&B PAYDEX score of 90 and a concerning Equifax Failure Score of 1,600.

Impact of personal credit

Although business and personal credit remain technically separate, many lenders consider both when evaluating small businesses. New companies lacking established business credit often face lender requirements to review owners' personal credit. However, some financial providers now offer startup business credit cards with no credit check, allowing businesses to begin building credit independently from day one. Building strong business credit gradually reduces dependence on personal credit entirely, eventually allowing the business to qualify for financing based solely on its own creditworthiness rather than requiring personal guarantees.

Regular credit monitoring helps businesses catch errors early, track improvement efforts, and avoid surprises during key financing moments. Credit experts recommend checking business credit reports at least quarterly, though more frequent monitoring provides better protection against errors and fraud. Some business credit monitoring services suggest monthly reviews, particularly for companies actively building credit or preparing for major financing. At minimum, businesses should review all three major bureau reports annually and always before applying for loans, signing major contracts, or entering partnerships where creditworthiness matters.

The frequency of monitoring should match your business's credit activity and growth stage. New businesses establishing credit should check monthly to ensure new accounts appear correctly and payment histories are recorded accurately. Established businesses with stable credit might review quarterly unless preparing for expansion or financing. Companies recovering from past credit problems benefit from monthly monitoring to track score improvements and ensure negative items age off reports as expected.

Setting up automated alerts through bureau monitoring services reduces the burden of manual checking. Many bureaus email notifications when scores change significantly, new accounts appear, or inquiries occur. These alerts provide early warning of potential problems like incorrectly reported late payments or unauthorized credit applications using your business information. The investment in monitoring services, typically $30 to $200 monthly depending on features, often pays for itself by catching issues before they damage financing opportunities.

New businesses can establish initial credit profiles within three to six months through strategic planning and disciplined execution. Building business credit requires intentional steps, starting with proper business formation. Register your business as an LLC or corporation and obtain an Employer Identification Number from the IRS to create a legal entity separate from yourself. Immediately apply for a free D-U-N-S Number from Dun & Bradstreet, which establishes your presence in their database and allows creditors to report your payment history.

The fastest path to initial credit involves opening accounts that report to business credit bureaus. Start with a business credit card from a major issuer that reports to all three bureaus, even if you must begin with a secured business credit card requiring a deposit. As your business establishes payment history and your scores improve over the first 6-12 months, you'll qualify for high limit business credit cards that provide more working capital flexibility while keeping utilization ratios low, a key factor in maintaining strong credit scores.

Payment behavior determines how quickly scores develop. While you cannot instantly achieve the payment depth of an established business, consistently paying on time or early accelerates score building. Some businesses see PAYDEX scores appear after just three to four reported trade experiences, potentially achieving scores of 80 or higher within six months if all payments are prompt. The key is starting immediately and maintaining perfect payment discipline from day one, as early mistakes can significantly slow credit development.

Setting realistic expectations helps new business owners stay motivated. “Building credit quickly” means establishing a credit file and achieving a respectable score within six months to a year, not reaching the 100 scores of decades-old companies overnight. Focus on consistent, positive payment behavior across multiple reporting accounts, and your business credit will strengthen steadily over time.

Building strong business credit requires consistent effort across three key areas of establishing credit relationships, maintaining payment discipline, and managing debt strategically.

Establishing credit early

Form your business as an LLC or corporation with an EIN, then immediately obtain a free D-U-N-S Number from Dun & Bradstreet. Open a business credit card and vendor accounts with companies like Brex that report to business credit bureaus and do not check personal credit. Use these accounts regularly for small purchases to generate positive payment history from day one, building credit proactively rather than waiting until financing becomes urgent.

Maintaining good payment practices

Payment history dominates business credit scoring, making on-time payments essential. Pay every bill by its due date and consider paying early to maximize scores like D&B's PAYDEX. Use accounting software alerts or automatic payments to track due dates, and never let accounts reach collections. If cash flow problems arise, contact creditors immediately to negotiate payment arrangements rather than missing payments entirely.

Managing debt and credit utilization

Keep business credit card balances below 30% of limits and avoid multiple credit applications within short periods. Request credit line increases on existing accounts to improve utilization ratios, and pay down high-balance accounts first. Space new credit applications several months apart while focusing on building strong payment history with current accounts before seeking additional credit.

Understanding and actively managing your business credit represents one of the most important yet overlooked aspects of building a successful company.

Business credit affects virtually every financial relationship your company will form. Strong credit profiles unlock access to capital at competitive rates, enable favorable payment terms with suppliers, reduce insurance and utility costs, and eliminate the need for personal guarantees that put your assets at risk. Poor credit, conversely, creates cascading obstacles that can trap businesses in cycles of expensive financing, restrictive supplier terms, and limited growth opportunities. The public nature of business credit reports means these consequences extend beyond financing to affect your company's reputation and partnership opportunities.

At Brex, we understand the challenges businesses face in building credit while managing cash flow effectively. Brex corporate cards report to major business credit bureaus, transforming routine expenses into credit-building opportunities. Combined with fee-free startup banking that earns higher yields on deposits and integrated bill pay that ensures timely vendor payments, Brex helps companies maintain the consistent payment history essential for strong credit scores. Real-time spend visibility prevents the missed payments and surprise expenses that can derail your credit profile.

The traditional approach of cobbling together disconnected banking products, credit cards, and expense tools creates unnecessary complexity and credit risk. Brex eliminates this fragmentation with a financial platform where higher card limits improve utilization ratios, automated expense tracking prevents bookkeeping errors, and intelligent payment scheduling protects your payment history. Every feature works in concert to strengthen your business credit while simplifying daily operations.

Sign up for a Brex card today to start building the strong business credit profile that will fuel your company's growth.

A business credit card's limit is more than just a number; it's a tool that needs to fit your business's financial situation. The optimal limit varies from one business to another, depending on monthly spending patterns and the ability to repay balances responsibly.

For businesses seeking higher limits, Brex offers corporate cards with limits up to 20 times higher than traditional business credit cards. Their underwriting focuses on your company's cash balance and spending patterns rather than personal credit scores, making them particularly attractive for startups and growing companies that need substantial credit access without personal guarantees. The card also provides tools for expense management and automated accounting integrations that streamline financial operations.

Sign up for Brex today to unlock the higher credit limits your business deserves and stop letting traditional card limits hold back your growth.