How is business credit different from personal credit?
Business credit is a separate financial file in your company's name. It is evaluated by different bureaus (Dun & Bradstreet, Experian Business, Equifax Business) using different scoring models. Personal credit uses FICO scores (300–850). Business credit uses PAYDEX (0–100), Intelliscore Plus (1–100), and Equifax Business Risk Scores (101–992). A personal bankruptcy does not automatically affect business credit, and vice versa. They are completely separate identities.
What is a DUNS number and do I need one?
A DUNS (Data Universal Numbering System) number is a unique 9-digit identifier assigned by Dun & Bradstreet to your business. It is the foundation of your D&B credit file. Without a DUNS number, you cannot have a PAYDEX score. DUNS numbers are free to register at dnb.com and can be obtained in 24–48 hours. Many lenders, government contracts, and vendors require a DUNS number.
What are Net-30 vendor accounts and why do they matter?
Net-30 accounts are trade credit lines from vendors that allow you to purchase supplies and pay the invoice within 30 days. When those vendors report your payment history to business credit bureaus, it creates 'tradelines' — the foundation of your business credit file. Key Net-30 vendors that report to D&B and Experian include Uline (shipping supplies), Quill (office supplies), Grainger (industrial supplies), and Crown Office Supplies. These are accessible to businesses with no prior credit history.
How fast can I build a business credit score?
With the right approach, you can generate your first PAYDEX score within 60–90 days of opening your first reporting vendor accounts. Reaching 80 PAYDEX (the benchmark for 'excellent') takes 6–12 months of consistent on-time or early payments. Reaching 90+ PAYDEX — which signals exceptional creditworthiness to lenders — is achievable within 12–18 months for businesses that pay 15–20 days early on all vendor accounts.
Does paying on time give me an 80 PAYDEX?
Yes. A PAYDEX score of exactly 80 corresponds to paying exactly on time. To achieve 90+ PAYDEX — which differentiates you from most businesses — you must pay 15–20 days early on your vendor accounts. D&B's PAYDEX is dollar-weighted, meaning larger vendor invoices carry more weight than smaller ones. Prioritize paying your largest vendor accounts early.
Can I build business credit even if I have bad personal credit?
Yes. Business credit is independent of personal credit. A business with a 500 FICO owner can still open Net-30 vendor accounts (which typically do not pull personal credit for approval), make payments, and build a strong PAYDEX score. However, most business loan programs — even those using business credit — still check personal credit as a secondary factor. Building business credit is a long-term strategy, not a short-term workaround.
What is Experian Intelliscore and how does it differ from PAYDEX?
Experian Intelliscore Plus ranges from 1–100, with higher scores indicating lower risk. Unlike PAYDEX, Intelliscore looks at payment history AND credit utilization — keeping balances below 30% of available credit lines improves your Intelliscore. It also considers public records, time in business, and number of tradelines. Both scores matter because different lenders pull different bureaus.
How much does it cost to monitor my business credit?
D&B provides your PAYDEX score for free with a DUNS number, with paid monitoring services starting at approximately $15/month for ongoing alerts. Experian Business Credit Advantage offers unlimited access for $199/year; single reports cost $39.95. Equifax typically provides business credit reports through paid applications. Third-party services like Nav aggregate multiple bureau scores in one dashboard — their paid tier provides more detailed access.
How does strong business credit improve my funding terms?
Strong business credit (80+ PAYDEX) can: (1) increase approved funding amounts by 25–50%, (2) reduce required interest rates and factor rates, (3) allow some lenders to eliminate the personal guarantee requirement on loans under $250,000, (4) open access to vendor net-60 and net-90 terms (improving your own cash flow), and (5) improve your company's reputation with suppliers, partners, and potential acquirers.
What mistakes most commonly damage business credit?
The five most damaging mistakes: (1) Paying late on vendor accounts — even one day late drops PAYDEX significantly; (2) Maxing out business credit utilization over 30%; (3) Not monitoring for errors — incorrect derogatory marks on business reports are more common than personal credit errors; (4) Mixing personal and business expenses without a dedicated business account, which confuses your business credit profile; (5) Closing old vendor accounts unnecessarily — length of credit history matters for Intelliscore.