Good business credit can be a valuable asset for a company. Yet you should understand that there isn’t just one business credit score. There are many. And when a small business applies for financing, a lender can use any one of these scores to evaluate its creditworthiness.
If your goal is to put your company in a better position to qualify for affordable financing, you should learn about the different business credit score options. And the most important aspect to focus on is how to earn the best possible business credit score under each scoring model.
What Is a Good PAYDEX® Score?
One of the more popular business credit scores is the PAYDEX® score. Dun and Bradstreet, one of the major business credit bureaus, created the PAYDEX score and sells it to vendors, suppliers, lenders, and others who want a reliable way to predict a company’s risk level.
The PAYDEX score ranks your business’ credit risk from 1 and 100. Earning a higher score tells others that your business is more likely to pay its credit obligations on time. Meanwhile, a lower score communicates a greater chance of default.
- A PAYDEX score of 80-100 puts you in the best position to qualify for business credit and to secure attractive financing terms (i.e., lower interest rates, lower fees, etc.).
- A PAYDEX score of 70 or lower could make it more difficult or more expensive for your business to secure credit from a supplier or lender.
The PAYDEX Score Range
As mentioned, the PAYDEX score ranges from 1 to 100. Paying your credit obligations on time may help you earn a score of 80. But if your goal is a perfect 100, you’ll need to try a different strategy — paying early.
Here’s a look at several different PAYDEX score possibilities, and what those numbers mean.
PAYDEX Scores Explained
| PAYDEX Score | What It Means | Risk Level |
| 100 | Payment comes 30 days before due date | Low |
| 90 | Payment comes 20 days before due date | Low |
| 80 | Payment comes on due date | Low |
| 70 | Payment comes 15 days after due date | Medium |
| 60 | Payment comes 22 days after due date | Medium |
| 50 | Payment comes 30 days after due date | Medium |
| 40 | Payment comes 60 days after due date | High |
| 30 | Payment comes 90 days after due date | High |
| 20 | Payment comes 120 days after due date | High |
| 1-19 | Payment comes more than 120 days after due date | High |
Source: Credit Strong
What Is a Good Intelliscore Plus?
Another popular business credit score is Intelliscore℠. The score was developed by Experian, a name you might recognize as one of the three major consumer credit bureaus. However, the company operates a separate business credit reporting agency too.
The Intelliscore Plus also ranges from 1 to 100, just like the PAYDEX score. Again, a higher score indicates that your business is more creditworthy while a lower score signals more risk.
Experian’s Intelliscore comes in multiple versions, as do many other credit scoring models. Intelliscore Plus℠ V3 is the latest development. However, lenders and others may still opt to use the older versions 1 and 2 if they don’t want to upgrade.
When a lender uses the score, it can opt to have it evaluate any of the following data sources:
- Business Credit Report (Experian)
- Personal Credit Report (Experian)
- A Combination of Business and Personal Credit Information
Additionally, your company’s Experian Intelliscore shows how your risk level measures up. A score of 90, for example, means your company scores better than 89% of other companies.
Each individual lender, vendor, or supplier will set its own credit qualification criteria. But, as always, a higher score should work in your favor when you apply for funding.
The Intelliscore Plus Range
Below, you’ll find examples of several different Intelliscore Plus ranges, along with an idea of what those numbers may mean in the eyes of a lender, vendor, or supplier.
Intelliscore Plus Ranges Explained
| Intelliscore Plus Range | Risk Grade | Risk Level | Bad Rate |
| 76-100 | 1 | Low | 1.7% |
| 51-75 | 2 | Low–Medium | 4.4% |
| 26-50 | 3 | Medium | 10.0% |
| 11-25 | 4 | Medium–High | 19.1% |
| 1-10 | 5 | High | 50.8% |
Source: Credit Strong
What is a Good Equifax Business Delinquency Financial Score?
Equifax is another major credit bureau that collects information about the credit management habits of individuals and businesses. On the business side, Equifax offers a number of different credit scores, including the Equifax Business Delinquency Financial score.
The Equifax Business Delinquency Financial score features a range of 101 to 650. Though it is possible for your business to earn a score of 0 if it files bankruptcy. A “null” score means your company needs to build business credit history to become eligible for a score.
The scoring model predicts the likelihood that your business will become severely delinquent on financial accounts. It can consider data from both your Equifax business credit report and the credit information of a company’s principal owners.
The Equifax Business Delinquency Financial Score Range
The following chart shows what the different credit score ranges mean with the Equifax Business Delinquency Financial Score. More importantly, you can use the risk level details below for an idea of what a lender or service provider might think when they see your score.
Equifax Business Delinquency Financial Score Explained
| Score Range | Risk Class | Risk Level | Bad Rate |
| 585-650 | 1 | Low | 0.57% |
| 554-584 | 2 | Low–Moderate | 0.98% |
| 465-553 | 3 | Moderate | 3.93% |
| 299-464 | 4 | Moderate-High | 21.2% |
| 101-298 | 5 | High | 75.3% |
Source: Credit Strong
What Is a Good PayNet MasterScore?
PayNet is one of the business credit reporting agencies that focuses on financial tradeline data. In 2019, Equifax acquired the company, but PayNet operates as an independent division of the business credit bureau.
According to PayNet, its credit database maintains more than 22 million records of business credit accounts which include small business loans, lines of credit, and leases. The PayNet MasterScore evaluates this data and predicts the creditworthiness of individual businesses.
The score ranges from 500 to 800 and, as usual, a higher score means a creditor faces less risk if it chooses to extend credit. In other words, a higher PayNet MasterScore tells a lender that your business is less likely to borrow money and default on its debt.
The PayNet MasterScore Range
Each small business lending professional decides its own approval criteria (i.e., the risk it’s comfortable taking when it extends credit to a business). But a higher PayNet MasterScore has the potential to tip the scales in your company’s favor.
Below is a look at how your PayNet MasterScore rating might look in the eyes of a lender.
PayNet MasterScore Ranges Explained
| PayNet MasterScore Range | Risk Level | Bad Rate |
| 700-800 | Low | 1.1% or Less |
| 660-699 | Low–Medium | Low–Medium |
| 630-659 | Medium | 9.0% to 4.1% |
| 590-629 | Medium–High | 21% to 9.1% |
| 500-589 | High | Greater than 21% |
Source: Credit Strong
What Is a Good FICO SBSS Score?
In the consumer credit world, the FICO® score plays a dominant role. Some 90% of top lenders rely on FICO scores for consumer credit decisions — both to determine who to approve and what interest rate to offer eligible credit applicants.
The FICO score holds a meaningful place among lenders in the business financing space as well. In particular, the Small Business Administration directs lenders to use the FICO Small Business Scoring Service (SBSS) score for several popular SBA loans.
The FICO SBSS score ranges from 0 to 300. Higher scores, as usual, indicate that your company is more likely to repay the money it borrows as agreed.
Like Intelliscore Plus, FICO SBSS scores can evaluate a hybrid of personal and business credit information. In fact, that’s all the FICO SBSS score does. The score can even evaluate the personal creditworthiness of up to five owners alongside your business credit data.
A good credit score is always in the eye of the beholder (aka the lender, vendor, supplier, etc.). But you’ll need a FICO SBSS score of at least 155 if you want to qualify for any of the following SBA loans:
- SBA 7(a) Loan
- Community Advantage Loan
- SBA Express Loan
- SBA Export Express Loan
Some SBA lenders may require an even higher score of 160 or 165 before they will be willing to do business with your company.
Note: Earning a good personal credit score may help you earn a higher FICO SBSS score too.
How to Build a Good Business Credit Score
Each of the credit agencies outlined above looks at factors from your company’s credit report to assess your business credit score. So, if you want to build strong business credit, you need to establish credit accounts that report to the business credit reporting agencies.
There’s just one problem: Finding lenders that are willing to approve you for small business financing like a business loan, business credit card, or revolving credit lines. This can be tricky if you don’t already have some good business credit established.
You can always consider starting with a credit card for your business (where you provide a personal guarantee) or trade credit with net 30 terms. But there’s another option to consider. You may be able to build a good business credit score with a business credit builder loan.
Consider a Credit Strong Credit Builder Loan
A Credit Strong Business Credit Builder Loan can provide you with a long-term business loan on your business credit profile. A few of the reasons you might want to consider a Credit Strong Credit Builder Account include:
- Establish credit with your company’s EIN. Providing your Employer Identification Number enables Credit Strong to report your account to the business credit reporting agencies.
- Build up to 120 months of payment history for your company. As you make affordable monthly payments toward your secured business loan, you’re building up cash reserves that you can access once you make your final payment and your account is unlocked.
- Review your business credit on a monthly basis. Account holders enjoy free monthly access to their company’s Equifax Business Delinquency Financial Score grade. This perk can help you track your progress as you work to build better business credit and detect potential problems like identity theft, fraud, negative credit reporting, and more.
Remember, once you establish business credit — a credit builder account, small business loan, or otherwise — on-time payment history is critical. Aside from timely payments, other good habits like a low credit utilization rate on your business credit card may also help you.
Good credit history leads to good credit scores. So, you should make every effort to manage your business credit accounts well if you want to earn and keep a good business credit score.
