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NCH's credit building program helped me to build a solid business credit score for my LLC from scratch and with zero prior knowledge about how it all works. The coaching team was fantastic and they really know their stuff.

- Elijah Hershey

Nevada is #1 in Lawsuit Protection

How Agencies Build & Report
Business Credit Scores

You don’t need to live in Nevada to enjoy the best asset and lawsuit protection a Nevada-registered business can provide

You know how your personal credit score is determined, but what about your business credit score? NCH can answer this question and provide you with the tools needed to build A+ business credit.

Business Credit Agencies

There are two business credit reporting agencies in the United States that lenders and financial institutions rely on for information to grant credit, Dun & Bradstreet and Experian.

Dun and Bradstreet
  • More than 70 million businesses are registered with D&B
  • Uses info provided by business owners and vendors and grants a PAYDEX score based on the payment history
  • Issues a DUNS rating based on the financial statements of the business
  • Has a High-Risk status for companies that will destroy a company's ability to obtain credit
Experian
  • More than 14 million businesses are registered with Experian
  • The credit profile created by Experian uses info provided by vendors only
  • Experian grants an Intelliscore based on payment history
  • Experian is one of the three largest personal credit bureaus

Business Credit Scores

Business credit scores with D&B and Experian are where financial institutions look to determine credit:

Credit Score Score Range Score Info Report Factors Factors
PAYDEX Score Scores range from 0 to 100 75+ score is good Based on payment experiences reported by vendors Need 5 trade references who report to D&B
Intelliscore Scores range from 0 to 100 75+ score is good Based on payment experiences reported by vendors Need 2 trade references who report to Experian
DUNS Rating Various rating schedules Based on employee size and financial statements Also takes payment history into account Based on payment experiences reported by vendors

The following criteria are used by lenders when determining credit approval, limits, and interest rates for business loans:

  • On-time bill payment history
  • D&B DUNS rating
  • D&B PAYDEX score
  • Public records information
  • Years in business
  • Business tax returns
  • Type of business
  • Location of business
  • Number of employees
  • Business plan
  • Trade references
  • Banking references
  • Accounts receivable aging reports
  • Owner/officer credit score (can be overlooked depending on which lender is being used)
  • Loan package – A formal presentation of everything above to present to the lender

What credit report lenders look for varies from lender to lender. Listed below are the most common reports used to determine credit. Keep in mind that these are only a guide and are not set in stone. Requirements change based on the amount of funding a lender has available at the time.

  • D&B PAYDEX Score: PAYDEX score ranges are on a scale of 0-100 – should be 75+ to be in the low to medium risk of default
  • D&B DUNS Rating: Varies based on financial statements and size (an ER, 1R or 2R rating only indicates employee size and does not indicate financial rating)
  • Payment experiences for business
  • Public information records

  • Experian Intelliscore: Scale of 0-100 – a score of 75+ will put your business in a low to medium risk of default
  • Experian FICO: FICO scores range from 300 to 850. You want a FICO score of 630+ to better your chances of approval

  • All the above are personal credit reporting agencies
  • All issue a FICO or Beacon score
  • Equifax business credit reports containing the following information:
    • Identification number for businesses
    • Basic company information
    • Financial information, including credit card details
    • Payment history
    • Public records

Got a Question? Start Here

Ideally, a business should check its credit reports regularly, once every quarter, or on a rotating business. By checking your business credit reports regularly, you can immediately correct any errors made in your report.

Contact the credit bureau that released the report and ask them to correct the mistake you found. Explain the error you found in writing and attach any documents or records that may support your dispute. We suggest you keep records of your correspondence with them.

Credit reporting agencies gather credit information from lenders and various other sources like credit card companies, banks, and credit unions. They compile all the data they've collected into a comprehensive credit report.

According to Experian, one of the three major credit bureaus in the US, a business credit score of 80 or over is considered good. This score can help you get better deals on financial products like business loans.

NCH can provide you with a complete profile of all your credit scores, including a composite score analyzing several criteria that a lender will look at. We can also help you build and improve your personal credit scores.

For more information on building business credit, please call 1-800-508-1729 to speak with a business credit expert at NCH.

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1:1 Business Checkup

In only 15-30 minutes, our business formation experts will meet with you and:

  • Evaluate your current business structure and identify areas of improvement
  • Find potential problems before they become major issues
  • Develop a game plan for improving asset protection and minimizing tax liability
  • Reduce your exposure in the event of a business accident

Time slots are limited and fill quickly, so secure your spot now!

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