Your business credit score determines your financial opportunities – better loan terms, higher credit limits, and even lower insurance costs. But many business owners don’t know where to start. Here’s a quick guide to improving your score effectively:
- Check and Fix Errors: Review your credit reports from bureaus like Dun & Bradstreet, Experian, and Equifax. Dispute any inaccuracies to avoid penalties from errors.
- Pay on Time or Early: Payment history is the most important factor. Automate payments to ensure consistency.
- Lower Credit Usage: Keep your credit utilization below 30%, ideally under 10%, to improve your score.
- Use Credit-Building Tools: Open accounts with net-term vendors, responsibly use business credit cards, and explore small loans to build a solid credit history.
- Track Progress: Monitor your credit reports monthly to catch issues early and measure improvements.
Quick Comparison of Credit Bureaus
| Credit Bureau | Key Features | Access Options |
|---|---|---|
| Dun & Bradstreet | DUNS number, trade credit data | CreditMonitor ($39/month) or CreditSignal (free) |
| Experian Business | Automatic report generation | One-time report ($39.95) or annual plan ($189/year) |
| Equifax Business | Financial data tracking | Free access to your own report |
Pro Tip: Start by disputing errors and paying down high balances. These steps can lead to noticeable improvements in as little as 30-60 days. Ready to take control of your business credit? Let’s dive in!
1. Find and Fix Credit Report Errors
Mistakes in your business credit report can drag down your credit score. A Wall Street Journal study found that 25% of small business owners uncovered errors or missing information in their reports that placed them in higher-risk credit categories. These inaccuracies can lead to higher interest rates, rejected financing applications, and even strained relationships with vendors.
Major Business Credit Bureaus
In the U.S., three main business credit bureaus maintain separate records of your company’s credit history:
| Credit Bureau | Key Features | Coverage |
|---|---|---|
| Dun & Bradstreet | DUNS number registration, lawsuit records | Trade credit data |
| Experian Business | Automatic report generation | U.S. companies database |
| Equifax Business | Free access to own report | Financial data tracking |
Get Your Credit Reports
Each bureau has its own access options for obtaining your business credit report:
- Dun & Bradstreet: Offers the CreditMonitor service for $39/month or CreditSignal, a free tool for basic updates.
- Experian: Provides a one-time report for $39.95 or an annual monitoring plan through Business Credit Advantage for $189/year.
- Equifax: Allows free access to your own business credit report.
"Your business credit score is essential to the financial health of your business." – Experian
Submit Error Disputes
If you find errors, gather documentation and file a dispute with each relevant bureau. Use their dispute forms, include supporting evidence, and track the progress until the issue is resolved. Unlike personal credit disputes, business credit bureaus are not regulated by the Fair Credit Reporting Act, so resolving errors may require consistent follow-up.
Take this example: Levi King, founder and CEO of Nav, discovered credit report errors in 2005 that led to loan rejections. After months of effort to correct the mistakes, he was finally able to secure the necessary financing.
Pro Tip: Some banks provide free access to business credit reports for their customers, including complimentary D&B credit score reports.
Once you’ve submitted disputes, focus on improving payment habits to further strengthen your credit score.
2. Establish Better Payment Habits
Once you’ve corrected any errors on your credit report, the next step is to strengthen your payment habits. Why? Because payment history makes up more than 35% of your business credit score, making it the most critical factor in determining your creditworthiness.
Make Early or On-Time Payments
Every payment you make – whether it’s early, on time, or late – is recorded by major business credit bureaus and directly influences your credit score. Here’s a quick breakdown of how different payment timings affect your score:
| Payment Timing | Impact on Credit Score | Additional Perks |
|---|---|---|
| Early (before the due date) | Maximum positive impact | Can improve ratings, such as Paydex scores |
| On-time | Positive impact | Builds a reliable payment history |
| Late (1–30 days) | Noticeable drop | May result in penalty fees |
| Very late (over 30 days) | Significant damage | Negative marks can linger for up to 7 years |
Pro Tip: Paying invoices early not only boosts your score more quickly but also helps with long-term cash flow stability.
To make this process even smoother, consider automating your payments to avoid delays.
Use Payment Automation
Automating your payments is a smart way to ensure on-time payments and maintain a steady credit score improvement. Here’s how to get started:
- Create a payment calendar: Include due dates, amounts, and account details for all recurring payments.
- Set up alerts: Get notifications for low balances and payment confirmations to avoid surprises.
- Monitor transactions weekly: Regular reviews help catch any errors or discrepancies.
Automation doesn’t just keep your payments on track – it also makes cash flow more predictable.
Important: Always keep your payment information up to date and ensure there are enough funds in your account to prevent declined payments. A bounced payment can harm your credit score.
For example, FreshBooks Payments, powered by Stripe, introduced a recurring billing system in January 2025. This system eliminated the hassle of manual payment tracking and ensured consistent cash flow, contributing to a more reliable payment history over time.
3. Lower Credit Usage and Debt
Your credit utilization ratio – essentially the percentage of your available credit that you’re using – accounts for about 30% of your credit score. Keeping this ratio in check is a smart way to improve your credit profile.
Keep Your Credit Usage Low
| Credit Utilization | Impact on Score | Suggested Action |
|---|---|---|
| 1-10% | Best impact | Stay within this range |
| 11-30% | Positive impact | Aim to lower it further |
| 31-50% | Some negative impact | Work on reducing balances |
| Above 50% | Major negative impact | Take immediate steps to lower usage |
"Generally, it’s recommended to keep your utilization ratio below 30%. However, it has been shown that those with the highest and best credit scores keep a ratio in the single digits."
One effective strategy to stay within optimal credit usage is making multiple payments throughout the month. This practice ensures your reported balances remain low. Additionally, maintaining disciplined usage can help when you’re ready to request higher credit limits.
Ask for Higher Credit Limits
Increasing your credit limit can lower your utilization ratio, but timing and preparation are key. Here’s how to approach it:
- Pick the Right Moment: Wait until you’ve built at least six months of perfect payment history.
- Keep Usage Low: Ensure your current credit usage stays around 10%.
- Show Financial Growth: Provide updated financial records that highlight growth and profitability.
For instance, Underground Service Alert, a nonprofit organization, managed to increase its credit limit from $65,000 to $1 million in early 2025. This was possible because they demonstrated consistent payment habits and submitted updated financial documentation.
Pay Down High Balances
Reducing existing balances is another way to improve your credit score. Consider these two strategies:
- Debt Avalanche: Focus on paying off accounts with the highest interest rates first.
- Debt Snowball: Start by clearing accounts with the smallest balances.
"A low credit utilization ratio is generally seen as a positive indicator of financial stability and responsible fiscal management, thus improving your business’s overall creditworthiness."
To speed up the process, try negotiating lower interest rates with creditors and stick to a strict budget. Regularly monitoring your accounts will help you maintain an optimal utilization ratio and strengthen your overall financial standing.
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4. Use Credit-Building Tools
Using financial tools that report to credit bureaus can help you build credit faster while meeting your business’s financial needs.
Work with Net-Term Vendors
Net-term vendors allow businesses to purchase goods or services on credit, typically with payment terms like "net 30." This means you have 30 days to pay after receiving the invoice. In 2019, small businesses with annual revenues under $1 million used over $50 billion in trade credit, according to the Consumer Financial Protection Bureau.
"Net 30 accounts give businesses the ability to manage their finances more effectively, allocating funds to different departments or for other necessary purchases while waiting for revenue to come in." – Resolve Team
When choosing net-term vendors, focus on those that report payment activity to major business credit bureaus. Here are some vendor options and their fees:
| Vendor Name | Annual Fee |
|---|---|
| Branded Apparel Club | $69.99 |
| Creative Analytics | $79.00 |
| Office Garner | $69.00 (one-time fee) |
Choose Business Credit Cards
Business credit cards are another effective way to build credit, provided they’re used responsibly. The key is to select cards that report to business credit bureaus and offer features that align with your spending habits.
Here’s what to look for in a business credit card:
- Payment Reporting: Make sure the card reports to all three major business credit bureaus.
- Reward Programs: Choose a card that offers rewards for the types of expenses your business incurs most often.
- Credit Management Tools: Look for cards that include free credit monitoring and spending analytics.
To get the most out of your business credit card:
- Keep your credit utilization below 30% of your limit.
- Set up automatic payments to avoid missing due dates.
- Regularly check account activity using mobile banking apps.
Apply for Business Loans
Business loans can help diversify your credit profile and establish a strong payment history. To use loans effectively:
- Carefully review the terms before committing.
- Automate payments to ensure on-time repayment.
- Check your credit reports to confirm that payments are being reported.
- Start with smaller loans to build trust with lenders.
Be mindful of how often you apply for new credit. Each application can temporarily lower your credit score, so space them out and focus on maintaining a solid payment track record with your current accounts. Over time, adding new credit tools will further strengthen your credit profile.
Regularly monitoring your credit reports will help you track your progress and identify areas for improvement.
5. Track Your Credit Progress
Keeping an eye on your business credit score is essential. It helps you identify areas for improvement and catch potential problems before they escalate. Your credit score can shift based on factors like payment history, account balances, and transaction activity.
Check Credit Reports Monthly
Make it a habit to review your credit reports every month. Pay close attention to details like credit activities, public records, risk scores, and any collection inquiries.
Here’s a quick comparison of some popular credit monitoring services:
| Service Provider | Monthly Cost | Key Features |
|---|---|---|
| D&B CreditBuilder Plus | $149 | Unlimited access to credit scores and alerts |
| Experian Business Credit Advantage | $14.92 ($179/year) | Ongoing reports and scores |
| D&B CreditMonitor™ | $39 | Basic monitoring and alerts |
"Checking your credit report at least once a year is a good credit habit and can help you keep your credit healthy by alerting you to potential problems early." – Ben Luthi, Author
To stay on top of your credit:
- Schedule monthly reviews of your reports.
- Use monitoring tools to track changes in your score.
- Set up alerts for important updates to your credit file.
- Check reports from multiple bureaus since they may contain different information.
Consistent monitoring works hand-in-hand with accurate payment reporting to keep your credit in good shape.
Report Regular Payments
Payment history is a major factor, accounting for 35% of your credit score. Ensuring that your regular payments are reported can make a big difference.
Here are some strategies to ensure payments are properly reported:
- Confirm that your current vendors report payments to major business credit bureaus.
- Ask utility companies and landlords to report your payment history.
- Use services that specialize in reporting regular payments to credit bureaus.
- Keep detailed records of any disputes and their resolutions.
When reviewing your credit reports, look out for:
- Accurate payment dates.
- Properly reported credit limits.
- Correct business details.
- Updates on previously disputed items.
If you notice any errors, act fast. Contact both the lender and the credit bureau to resolve inaccuracies. Quick action can help maintain your progress and prevent setbacks in your credit score improvement efforts.
Conclusion: Start Improving Your Score Now
Take charge of your business credit by taking deliberate, focused steps. Start with a detailed review of your credit reports – this is the first step toward building a stronger credit profile. When applied consistently, these actions can reinforce the work you’ve already done to establish a solid foundation.
Begin by setting up the essentials, like obtaining a D‑U‑N‑S number and opening separate business accounts. These actions help establish credibility and create a distinct business credit history.
Here’s a quick guide to prioritize your efforts based on impact and timing:
| Priority | Action | Timeline |
|---|---|---|
| Immediate | Dispute credit report errors | 30-day resolution |
| High | Set up payment automation | Immediate effect |
| Critical | Reduce credit utilization below 10% | 30-60 days |
| Ongoing | Monitor credit reports | Monthly review |
Regular monitoring is key to staying on track. Take a page from Mike O., the owner of Evenflow Sewer and Drain Service in Kings Park, New York. He reviews his business credit profile daily to ensure payments are up to date, which has helped him secure better financing options.
FAQs
What’s the fastest way to find and fix errors on my business credit report?
To quickly address and correct mistakes on your business credit report, start by getting your reports from the major credit bureaus like Experian, Equifax, and TransUnion. Go through the details carefully, checking for issues such as incorrect business information, payment history inaccuracies, or accounts that don’t belong to you.
If you find an error, use the bureau’s dispute process. This usually involves submitting your dispute online or by mail. Make sure to include any supporting documents to strengthen your case. Keep copies of all your correspondence, as credit bureaus are required to investigate and respond to disputes within 30 days. By acting promptly, you can resolve errors and safeguard your business’s credit profile.
What are the best ways to keep your business credit utilization low?
Keeping your business credit utilization low is key to maintaining a solid credit score. Here are a few practical tips to help you manage it effectively:
- Make multiple payments each month: Paying off portions of your balance before the billing cycle closes ensures that a smaller balance is reported to credit bureaus. This keeps your utilization ratio in check.
- Ask for a higher credit limit: A higher credit limit can reduce your utilization percentage, even if your spending habits stay the same.
- Keep older accounts open: Closing long-standing accounts can shrink your total available credit, which might push your utilization ratio higher.
Sticking to these habits can strengthen your business’s credit profile and open the door to better financing options.
How can net-term vendors and business credit cards help improve my business credit score?
Net-term vendors and business credit cards are essential tools for strengthening your business credit score. By working with net-term vendors – such as those offering net 30 accounts – and reliably paying your invoices on time, you create a solid payment history. This track record is a key factor in boosting your credit score.
Business credit cards also play a crucial role by keeping personal and business expenses separate. Making regular, on-time payments on these cards shows financial discipline and further improves your business credit profile. Together, these strategies build credibility with lenders and suppliers, paving the way for better financing opportunities and more favorable terms down the line.
