Understanding Your Business Credit Score (And How to Improve It)
If you're a business owner looking to secure funding, land contracts, or build strategic partnerships, there's one metric you cannot afford to ignore—your business credit score.
At Lexington Capital Holdings, we work with thousands of businesses every year. One common hurdle we see? Business owners don’t fully understand their credit score—or how it directly impacts their ability to grow.
Let’s change that.
📊 What Is a Business Credit Score?
Unlike your personal credit score, which ranges from 300–850, business credit scores are measured differently—typically from 0 to 100 (depending on the credit bureau).
Here’s a quick breakdown:
- Dun & Bradstreet PAYDEX Score: Ranges from 0–100. A score of 80+ is considered excellent.
- Experian Intelliscore Plus: Ranges from 0–100. A higher score indicates lower risk to lenders.
- Equifax Business Credit Risk Score: Typically ranges from 101–992. Higher is better.
These scores reflect how your business manages debt and obligations, and they’re critical for lenders, suppliers, and partners evaluating your reliability.
🚩 Why It Matters
Your business credit score can determine:
- Whether you get approved for funding
- What interest rates you’ll pay
- How much credit you’re offered
- Your ability to negotiate better terms with vendors
Even if your business is profitable, a low score can limit opportunities—or delay time-sensitive growth.
🛠️ How to Improve Your Business Credit Score
Improving your score isn’t just possible—it’s essential. Here’s how to start:
1. Establish Business Credit
If you haven’t already, separate your business finances from personal. Get an EIN, open a business bank account, and apply for a D-U-N-S number with Dun & Bradstreet.
2. Pay Early (Not Just On Time)
Many business credit scores reward early payments. Strive to pay vendors and lenders before the due date whenever possible.
3. Open (and Responsibly Use) Business Credit Accounts
Apply for credit with vendors who report to commercial credit bureaus. Use the credit wisely and keep utilization low.
4. Monitor Your Reports
Check your business credit reports regularly. Dispute inaccuracies and keep your information up to date.
5. Keep Debt Manageable
High balances and overutilized credit lines can drag down your score. Pay down debt and avoid maxing out lines of credit.
💡 Pro Tip from Lexington:
Before applying for funding, review your business credit health. Many lenders will pull your business report—and first impressions matter.
