The measurement for Experian's risk model for businesses is the Intelliscore Plus℠. It is a predictive credit risk management tool that accesses more than 800 variables. Experian's credit ranking score is based on major factors such as the following:

Credit: number of trade experiences, balances outstanding, payment history, credit utilization and trends over time.

Public records: recency, frequency and dollar amounts associated with liens, judgments, and bankruptcies.

Demographic information: years on file, SIC code, business size, etc.

Scores range from 1 to 100, where lower scores indicate higher risk. Ideally, you want to aim for a 75 or higher score with Experian Business.

To see the Intelliscore Plus℠ in action click on the file download below to view a sample.

Equifax Small Business is more guarded about what their commercial scoring model is based on. However, it's safe to say a large portion of their risk scoring model is based on making payments on time and keeping your company's report free from any public records, collections, or excessive credit inquiries. The score used for businesses is known as the Small Business Credit Risk Score. To view a sample score report click on the download file below.

A company's Paydex® score is directly tied to its D&B business credit report. Similar to your personal FICO® score, it's a statistical measurement of your company's creditworthiness based on reporting trade lines. Paydex® score ranges from 0-100, with 90-100 considered excellent; 80 and below rated as good; and 70 and below rated as poor.

You will need to aim for at least an 80+ score to qualify for most business finance programs. In order to accomplish this you'll need at least 4 trade references to generate a score but we recommend at least five (5) trade references reporting to D&B for starters.

Ultimately your goal should be to have 15+ trade references reporting on each of your company's business credit reports for optimal depth, history and diversity.

***Special Reminder***

When you first apply for new vendor based credit and new business credit card accounts, your business score will at first go down. This is due to the inquiries and because the accounts have recently been opened. This is a normal part of the process and your scores will increase as your payment history begins to get established.