What are the 3 major business credit bureaus & how do they work?

Strong business credit can make it easier to get supplier credit and some small business loans, save you money on insurance, and even help your business secure larger contracts.

But if you’re like many business owners, you don’t know what these business credit bureaus are or how they work.

Here we’ll demystify business credit and explain how to check and monitor your business credit reports.

What are business credit bureaus?

Business credit bureaus are specialized companies that collect, organize, and sell information about how businesses handle their financial obligations. 

Data is collected from many different sources, including lenders, suppliers and vendors, public records held at courthouses, state agencies (like Secretaries of State), data brokers, and other public data sources, to create profiles about businesses. 

Unlike personal credit, which is highly regulated under federal law business credit reports are not regulated under the Federal Credit Reporting Act. 

That means business owners aren’t entitled to free business credit reports or scores, disputes aren’t regulated as they are with consumer credit, and there is no limit on how long negative information can be reported. 

The three major business credit bureaus explained in detail

Dun & Bradstreet

Dun & Bradstreet is the oldest and most widely recognized business credit bureau, founded in 1841. They assign every business a unique D-U-N-S^® Number (Data Universal Numbering System) that serves as the company's credit identifier in the Dun & Bradstreet system.

You may have heard of the D&B PAYDEX^® score, a well known business credit score. But there are other scores D&B sells. 

D&B scores

For your business to have a PAYDEX^® score, it needs a D-U-N-S Number, plus at least two tradelines reporting with three total trade experiences. The scoring system is dollar-weighted, meaning larger invoices carry more influence on your score.

A PAYDEX^® score of 80 or higher indicates the business pays on time or early, while scores below 50 signal serious payment issues.

Experian

Experian Business offers comprehensive business credit reports and several scoring models designed to help lenders assess risk. Their most widely used score is the Intelliscore Plus.

Experian's business credit scores

Experian can evaluate over 800 different data points about a business, including payment history, public records, credit utilization, and business demographics. 

Because Experian compiles both consumer credit reports and business credit reports, it is able to evaluate both personal and business credit data to create a single score. These “blended scores” are often used for newer companies with limited business credit histories. 

On the 0–100 scale, scores above 76 typically indicate low risk, while scores below 25 suggest high risk to lenders.

Equifax

Equifax creates several different business credit scores, each designed for specific purposes like lending decisions or collection risk assessment.

Equifax business credit scores

Equifax Failure Score

The Business Failure Score specifically predicts the likelihood of business failure through formal or informal bankruptcy within the next 12 months. This score ranges from 1000 to 1604, with higher scores indicating lower risk.

Credit risk scores

Equifax also offers various credit risk scoring solutions that help lenders determine appropriate credit limits and assess overall lending risk. These tools are designed as guidelines for lenders who make their own final credit decisions.

Small Business Financial Exchange (SBFE)

Established in 2001, the Small Business Financial Exchange (SBFE) is a member-owned trade association that collects business credit payment history from financial institutions and makes that information available to partner credit bureaus.

The SBFE uses a "give-to-get" model where lenders share payment data and gain access to comprehensive credit information through credit bureau partners. If you have business loans, credit cards, or equipment leases with SBFE member institutions, your payment history may be included in their database.

SBFE data include:

• Business identification information
• Payment history on loans and lines of credit
• Leasing payment records
• Credit limits and balances
• Business credit card activity

The SBFE doesn't create credit scores or sell credit reports. Instead, it provides data to commercial credit bureaus that may incorporate this information into business credit reports sold to SBFE members.

How do business credit bureaus collect data?

Business credit bureaus gather information from multiple sources with the goal of building profiles of your company's financial behavior and level of risk.

Primary data sources include:

Public records: Court filings, bankruptcies, tax liens, judgments, and UCC filings, as well as business registration information from Secretaries of State offices or similar agencies.

Trade creditors: Suppliers and vendors who extend payment terms report your payment patterns, including whether you pay early, on time, or late.

Financial institutions: Banks and lenders report information about business loans, lines of credit, and credit card accounts.

Utility companies: Some utility providers report payment history for business accounts, though this varies by provider and location. 

Telecom data: Information about telecommunications accounts are gathered through specialized bureaus. 

Collection agencies: Third-party collectors may report accounts that have been sent to collections. (Equifax reports it does not include third-party collection accounts in credit reports.)

While consumer credit reports use a fairly standard reporting system, business credit reports can be quite different from one to the other. Not all business loans or financing is reported to all the major bureaus, and some may only report negative information like late payments or defaults.

How to get your business credit reports

You have several options for accessing your business credit reports, ranging from free summaries to detailed paid reports.

Direct from bureaus:

• Dun & Bradstreet: Free and paid products 
• Experian: Various packages from basic reports to annual subscriptions
• Equifax: Individual reports for $49.95 at the time of writing

Nav

Nav offers business owners the most comprehensive source of business and personal credit data in one place. 

A free Nav account gives you credit report summaries and letter grades from multiple bureaus. 

Nav Prime (a paid product) offers detailed credit reports from multiple business and consumer credit bureaus, plus consumer and business credit scores updated monthly when you log in.

Checking and monitoring your credit reports and scores from all three major business credit bureaus gives you the complete picture of your business credit profile, since different lenders may check different bureaus.

Unlike personal credit reports, you're not entitled to free annual business credit reports under federal law. However, monitoring your business credit regularly helps you catch errors and track improvement over time.

Why business credit reports matter

Strong business credit opens doors to better financing terms and business opportunities that can directly impact your bottom line.

Impact on financing

Lenders may use business credit reports when you apply for credit, or to review outstanding loans. 

• Loan approval: Higher credit scores can improve chances of approval for small business loans and financing
• Interest rates: Strong credit may help the business get lower interest rates
• Credit limits: Better scores may lead to higher credit limits, initially or in the future. 
• Loan terms: Good credit may help your business qualify for longer repayment periods
• Loan reviews: Credit may be reviewed for signs of distress on outstanding loans or lines of credit for signs.

Supplier relationships

• Payment terms: Suppliers may offer net-30 or net-60 terms instead of requiring cash upfront
• Credit limits: Higher credit scores can increase purchasing power
• Pricing: Some vendors offer better pricing to creditworthy customers

Other business benefits

• Insurance premiums: Some insurers factor credit scores into premium calculations
• Surety bonds: Business credit may be reviewed if your business needs bonding
• Commercial leases: Landlords often check business credit before approving leases
• Telecom and utilities: Businesses with solid credit may be able to avoid large deposits for telephone, internet or other telecom services, as well as utilities 
• Partnership opportunities: Other businesses may review your credit before entering joint ventures or subcontracting to your firm

Building strong business credit takes time, but the long-term benefits can significantly impact your company's growth potential and profitability.

How to dispute errors

Errors on business credit reports can bring down your scores. Monitor your credit reports regularly and dispute mistakes.

Steps to dispute errors

1. Get copies of your reports: Review reports from all three major bureaus to identify inconsistencies or errors
2. Document the errors: Take screenshots and gather supporting documentation like payment records or account statements if you have them. 
3. Contact the appropriate bureau: Each bureau has its own dispute process. Use the following information to contact each credit bureau. 

• Dun & Bradstreet: Visit the Dun & Bradstreet website to learn how to request corrections to your business information. 
• Equifax: Visit the Equifax small business website for instructions on how to dispute mistakes. 
• Experian: Visit BusinessCreditFacts.com or call (888) 211-0728 to learn how to dispute or update information.

Most bureaus investigate disputes within a few weeks and will update your credit report if they confirm the mistake. Keep copies of correspondence and follow up if you don't hear back. 

How to build your scores

Building strong business credit isn’t hard, but it does require a thoughtful approach. 

Essential steps

1. Establish tradelines: Tradelines are accounts that appear on credit reports. Not all suppliers or lenders report payment history, so ask before opening accounts.

2. Pay early when possible: The D&B PAYDEX^® score rewards early payments even more than on-time payments. Paying 10–20 days early can boost your scores. 

3. Keep balances low: High credit utilization signals financial stress. Aim to use less than 30% of available credit limits.

4. Monitor all three bureaus: Lenders may check credit at any of the major credit bureaus, so check and monitor build credit across all three major agencies.

5. Separate business and personal finances: Use dedicated business accounts and credit cards to establish a clear business credit profile.

Frequently asked questions