DIY Corporate Credit Series: How Does Business Credit Scoring Work?

 In Business, Business Credit, Business Finance, Business Growth

What are the three main business credit scoring agencies in the US? They are Dun and Bradstreet, Experian and Equifax. As you’re building corporate credit for your business, you’ll also be building your company’s credit score. Knowing how each one manages the business credit scoring process will help you grow your business through funding and other financial means.

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Read DIY Corporate Credit Series: Your Company’s Equifax Credit Profile

How Do the 3 Primary Agencies Calculate Business Credit Scoring?

Each one of the main three business credit scoring agencies does its own mathematical calculations differently. This is how each determines your company’s credit worthiness and the likelihood of timely payments being made. Corporate credit scores are accumulated based on past payment history with creditors who have granted financing, loans, credit cards, etc…

Dun and Bradstreet Paydex Score Business Credit Scoring

Dun and Bradstreet (D&B) uses a simple credit scoring system. Similar to your personal FICO score, it calculates scores from 0-100. Generally, a Paydex score of 75 or better is considered “good business credit.” With such a score, your company can typically establish credit with new creditors on its own merit.

Click here to order your D&B Paydex Credit Score

Sample of a D&B Credit Report and Credit Score

Sample of a D&B Credit Report and Credit Score
Image Source: D&B

Experian Intelliscore Report Business Credit Scoring

As one of the largest credit reporting agencies in America, Experian is very important for building business credit. This agency uses its own unique method of calculating corporate credit scores known as “Intelliscore.”

Click here to order your Experian Business Credit Score

Establish Your Company’s Experian Credit Profile to Help Build Your Corporate Credit

Establish Your Company’s Experian Credit Profile to Help Build Your Corporate Credit
Image Source: Experian

Equifax Small Business Risk Credit Scoring

Another major business credit scoring agency that helps you build corporate credit is Equifax. Its numerical value helps your company’s potential creditors determine its creditworthiness. The higher the Equifax credit score, the less risk, according to scoring factors.

Click here to order your Equifax Small Business Credit Report

Equifax Small Business Credit Scoring

Equifax Small Business Risk Credit Scoring
Image Source: Equifax

Build Your Business Brand and Business Credit Yourself

The best way to build business credit yourself is to make all of your payments on time. To build a D&B Paydex business credit score of 75 or better, you must have at least five creditors reporting on-time payments.

Ready to build your business brand to improve your credibility with potential creditors? The EntreMarketing Group helps small businesses build brands that sustain the test of time. Contact CEO Kereen Henry about customizing a small business brand marketing package for you today.

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Tune in tomorrow when we continue this series with ‘DIY Corporate Credit Series: Your Company’s Banking, Assets, Revenue and Insurance’…

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