Business Credit Score Explained — The Complete Guide To EveryScore Every Bureau And Exactly What Each Number Means For YourBusiness

Most small business owners know their personal credit score. They know their FICO score range and

approximately what it is. What most small business owners do not know is that their business has its own

completely separate credit score that exists independently of their personal credit history -- and that this

business credit score is the number that determines whether their business gets approved for financing with no

personal guarantee or whether every financing application requires them to put their personal assets on the

line. Business credit scores are not extensions of personal credit scores. They are entirely separate scoring

systems maintained by entirely separate bureaus that collect entirely different data and produce entirely

different numbers. Understanding your business credit scores is the foundation of every strategic credit building

decision your business will ever make.

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The Three Major Business Credit Bureaus

Bureau one -- Dun and Bradstreet. The largest and most widely used commercial credit bureau in the world.

D&B; is the primary bureau checked by virtually every Tier 1 Tier 2 Tier 3 and Tier 4 vendor and lender. Your

D&B; profile is created when you register your D-U-N-S number at dnb.com.

Bureau two -- Experian Business. The business credit division of Experian. Checked primarily by Tier 2 and Tier

3 vendors and several Tier 4 products. Completely separate from your Experian consumer profile -- strong

personal Experian performance does not transfer to your Experian Business profile.

Bureau three -- Equifax Business. The business credit division of Equifax. Checked primarily by institutional

lenders and larger Tier 2 and Tier 3 vendors. Completely separate from your Equifax consumer profile.

The PAYDEX Score — Dun And Bradstreet's Primary Business Credit Score

The PAYDEX score ranges from 0 to 100 and measures exactly one thing -- how promptly your business pays

its vendor obligations relative to the agreed payment terms. Not your revenue. Not your time in business. Just

your payment timing -- averaged across all vendor accounts reporting to D&B; and weighted by the dollar

amount of each transaction.

PAYDEX Score Payment Behavior What It Unlocks

1 to 49 Paying 30 to 120 days late on average No Tier 2 approvals -- personal guarantee required

50 to 69 Paying 15 to 30 days late on average Possible Tier 1 only -- personal guarantee likely

70 Paying approximately 15 days after due

date Tier 2 unlocks -- HD Supply Walmart Business Staples

75 Paying approximately on the due date Tier 3 unlocks -- AtoB Fleet Dell Business MSC Industrial

80 Paying all obligations on the due date Tier 4 unlocks -- Brex Ramp Bluevine up to $250,000

90 to 100 Paying 5 to 15 days before due date Maximum Tier 4 limits -- $100,000 to $250,000

The difference between PAYDEX 80 and PAYDEX 90 is the difference between paying vendor invoices on the

due date and paying them five days early. That single habit is worth tens of thousands of dollars in additional

Tier 4 credit limit approvals.

The Intelliscore Plus — Experian Business's Primary Credit Score

The Intelliscore Plus ranges from 1 to 100 -- with 100 being the best possible score. Unlike the PAYDEX score

which measures only payment timing the Intelliscore Plus is a predictive risk score that incorporates multiple

variables including payment history industry risk profile business age number of active tradelines and business

credit utilization.

Intelliscore Plus Risk Level Credit Impact

1 to 10 High risk Personal guarantee required at most Tier 2 vendors

11 to 25 Medium to high risk Some Tier 2 possible with personal guarantee

26 to 50 Medium risk Tier 2 approvals possible without guarantee

51 to 74 Low to medium risk Strong Tier 2 and beginning Tier 3 eligibility

75 to 100 Low risk Strong Tier 2 and Tier 3 eligibility without personal guarantee

The Business Credit Risk Score — Equifax Business's Primary Credit Score

The Business Credit Risk Score ranges from 101 to 992 -- with 992 being the best possible score. Used

primarily by institutional lenders and larger commercial credit products. A completely different scale than both

the PAYDEX score and the Intelliscore Plus -- the scores are not comparable across bureaus.

Business Credit Risk Score Risk Level Credit Impact

101 to 556 High risk Significant personal guarantee requirements

557 to 749 Medium risk Tier 2 eligibility improving

750 to 899 Low to medium risk Strong Tier 2 and Tier 3 eligibility

900 to 992 Low risk Strong eligibility across Tier 2 Tier 3 and Tier 4

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How To Monitor All Three Business Credit Scores

The most efficient way to monitor your PAYDEX score your Intelliscore Plus and your Business Credit Risk

Score simultaneously is through Nav Business at nav.com. Nav aggregates data from all three major business

credit bureaus into a single dashboard showing all three scores your active tradelines your recent alerts and

your credit building recommendations in one place. Check your Nav Business dashboard every Monday

morning. Look at all three scores. If any one score is flat or declining while the others are improving --

investigate which bureau is not receiving the payment reporting it should be and take corrective action before

that score gap widens.

The One Thing That Connects All Three Business Credit Scores

After explaining three different scoring models across three different bureaus -- there is one thing that connects

all three and determines your performance on all of them simultaneously. Paying your vendor invoices five days

before the due date. Every time. Without exception. Every payment made five days early contributes positively

to your PAYDEX score at D&B.; The same payment is reported to Experian Business where it improves your

Intelliscore Plus. The same payment is reported to Equifax Business where it improves your Business Credit

Risk Score. One payment. Three bureaus. Three simultaneous positive score contributions. Build the

foundation correctly. Use your EIN on every application. Pay five days early on every invoice. Monitor all three

scores every Monday morning. The business credit profile that emerges from those consistent inputs over 12

months will qualify your business for more commercial credit at higher limits with no personal guarantee than

any shortcut program has ever produced.

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