What Is A FICO Business Credit Score (Fair Isaac)?

The FICO business score gauges a company's creditworthiness on a 0‑300 scale by analyzing five core data points: payment history, credit utilization, length of credit history, public records (bankruptcies, liens, judgments), and recent inquiries.

Examples

• A vendor that pays invoices on time, uses only 20 % of its revolving credit, and has five years of trade lines typically scores 260‑300.
• A startup with a 90 % utilization rate, a 12‑month credit history, and a recent collection filing may land around 130‑150.
• A mid‑size firm that recently opened three new credit accounts and has a single tax lien will see its score dip into the 180‑210 range until those factors age off.

These snapshots illustrate how each component pushes the score higher or lower, setting the stage for the range breakdown discussed in the next section.

The FICO business score spans 0‑300, and lenders sort it into four risk bands that directly affect credit decisions.

FICO business score derives from five data buckets that commercial credit bureaus feed into a proprietary algorithm. Roughly 40 % of the score reflects payment history - timely supplier and lender payments - while 30 % accounts for credit utilization, the ratio of outstanding balances to total credit limits. Credit age (average age of credit lines) contributes about 15 %, public records such as liens or bankruptcies add 10 %, and a 5 % 'industry risk' factor adjusts for sector‑specific volatility.

The model pulls this information from commercial credit bureaus (Experian Business, Equifax Business, Dun & Bradstreet), merges it, applies weighting, and normalizes the result to the score range of 0‑300 points, updating monthly.

The algorithm normalizes each bucket against peer groups, then aggregates the weighted scores into a single number. Recent activity carries more weight than older data, so a fresh missed payment can shift the FICO business score quickly. This score underpins the discussion in the next section on how lenders use your FICO business score, and aligns with the measurement categories covered earlier. For a deeper dive, see FICO's official explanation of its business scoring model.

Lenders look at your FICO business score to decide whether to fund you, how much to lend, and at what cost.

• They use the score as a quick risk filter; scores above 200 usually clear the first hurdle, while scores below 150 trigger additional paperwork.
• The score determines the interest rate tier; a higher score earns a lower APR because the lender expects fewer defaults.
• It sets the maximum credit line; lenders match larger lines to scores that show strong payment history and low utilization.
• Lenders monitor the score over time; a sudden drop can prompt a review, a reduced line, or a higher rate on existing debt.
• Some lenders embed the score in automated underwriting algorithms, allowing instant decisions for small‑ticket loans or credit cards.

You can check your FICO business score on the FICO SBSS portal, through the three major business credit bureaus, and via commercial credit‑monitoring services.

• FICO Small Business Scoring Service (SBSS) - the official source provides the most current score and detailed factor breakdown.
• Experian Business Credit Report - includes the FICO business score alongside Experian's own rating.
• Dun & Bradstreet Business Credit Report - shows the FICO score when you subscribe to their credit‑monitoring package.
• Equifax Business Credit Report - lists the FICO score as part of the full business credit profile.
• Nav business credit dashboard - aggregates scores from FICO, Experian, and D&B for a single view.
• CreditSafe business credit monitor - provides real‑time access to the FICO business score with alerts on score changes.

Regularly viewing the score lets you identify trends early, giving you a head‑start on the improvement tactics discussed in the next section.

Boost your FICO business score fast by improving the five data buckets that make up the 0‑300 model.

1. Pay every vendor invoice by the due date, preferably within 30 days. On‑time payments signal reliability and lift the payment‑history component.
2. Keep revolving‑credit utilization below 30 %. Low balances show you manage credit responsibly and raise the utilization factor.
3. Dispute any inaccurate trade‑line or public‑record entry. A clean report removes negative weight from the scoring algorithm.
4. Add a positive tradeline, such as a secured business credit card, and use it for small purchases that you pay off each month. Consistent, positive activity boosts the credit‑mix and payment sections.
5. Preserve your oldest accounts. Length of credit history improves as accounts age, so avoid closing long‑standing lines.
6. Diversify credit types by adding a small term loan or equipment lease. A varied mix demonstrates ability to handle different obligations.
7. Track your score weekly with the free portal mentioned in where you can check your FICO business score. Monitoring lets you catch dips early and adjust tactics promptly.

Here are five illustrative scenarios that show how a FICO business score can shape loan decisions.

• Score 820 +  - A boutique consulting firm with an 825 SBSS secured a 5‑year, $150,000 line of credit at a 4.9 % APR because the lender classified the risk as 'prime.'
• Score 720‑799 - A regional restaurant chain rated 750 obtained a $250,000 SBA 7(a) loan with a 6.5 % rate; the lender noted the score placed the business in the 'good' tier, allowing a moderate interest rate but requiring a personal guarantee.
• Score 660‑719 - A construction startup scoring 680 was approved for a $75,000 equipment loan at 9.2 % APR; the lender cited the 'fair' range and imposed a higher interest margin and a $5,000 cash‑sweep clause.
• Score 580‑659 - A seasonal retailer with a 600 score qualified only for a $30,000 short‑term merchant cash advance at 18 % APR, reflecting the 'sub‑prime' assessment and limited collateral.
• Score below 580 - A new e‑commerce venture scoring 540 was denied a traditional bank loan and redirected to an alternative financing platform that offered a $20,000 invoice‑factoring line at 22 % APR, noting the high risk indicated by the score.

These examples illustrate the typical correlation: higher scores unlock larger amounts, longer terms, and lower rates, while lower scores restrict access to costlier, short‑term products. Understanding where your FICO business score sits helps you anticipate lender expectations before you apply.

You can correct inaccurate items on your FICO business report by filing a dispute with the bureau that provided the data.

• Obtain the latest report from the three major business credit agencies (Dun & Bradstreet, Experian Business, Equifax Business) and highlight the error.
• Collect supporting documents such as invoices, bank statements, or contracts that prove the correct information.
• Submit the dispute directly to the agency that listed the mistake - use their online portal, secure email, or certified mail and attach the evidence.
• Include a concise statement explaining why the item is wrong and request that it be removed or corrected.
• Wait up to 30 days for the agency to investigate; they must notify you of the outcome and provide an updated report.
• If the agency upholds the error, request a re‑investigation with additional proof or consider escalating to the FICO Small Business Scoring Service (SBSS) via FICO's dispute guidance.

Your personal credit can affect the FICO business score when the business lacks its own credit file; once the business establishes an independent file, personal credit no longer flows into the score.

When you operate as a sole proprietor or have not opened a business credit profile, lenders pull your Social Security number, treat your personal FICO score as a proxy, and feed those data points into the SBSS calculation. A missed personal loan payment can therefore lower the business score, just as it would your personal rating. This linkage explains why early sections on 'how FICO calculates your business score' emphasize the role of the applicant's credit history.

When your company registers an EIN, reports regularly to a small‑business data furnisher, and accumulates at least six months of trade‑line activity, the SBSS derives exclusively from business‑specific factors such as payment timeliness, credit utilization on business lines, and public records. In this scenario, owners' personal scores have no direct impact; improvements focus on the '7 steps to improve your FICO business score fast' outlined later. Experian explains how business‑only data drive the score.

Boost your FICO® Score 8 by applying these five proven actions.

1. Pull your credit reports and dispute errors - Request the free annual reports from the three bureaus, scan for inaccurate late payments or balances, and file disputes online. Typically, correcting a single erroneous late mark can raise the score 30 to 50 points.
2. Trim credit‑card utilization below 30  % - Aim for a utilization rate under 30 %, and if possible under 10 % for faster gains. For example, with a $5,000 total limit, keep balances under $500. Generally, lower utilization signals better risk management and lifts scores within a few billing cycles. Understanding credit utilization ratios
3. Pay every bill on time - Set up automatic payments or calendar reminders. Payment history accounts for roughly 35 % of the FICO 8 calculation, so consistent on‑time payments are the single biggest driver of improvement.
4. Preserve the age of your oldest accounts - Keep long‑standing credit cards open, even if you use them rarely. Closing them reduces the average age of credit and can shave points, especially for those in the Good (670‑739) bracket.
5. Add a modest installment loan if you lack credit mix - A small personal loan or a credit‑builder loan introduces an installment component, which can help if your mix is limited to revolving credit. Apply only for credit you truly need; each hard inquiry typically drops the score 5 to 10 points for a short period.

Watch your credit file daily and lock down the information that lets fraudsters create accounts in your name. Use a credit‑freeze service on the business reports from the three major bureaus, protect the EIN and any D‑U‑N‑S numbers with two‑factor authentication, and restrict who can request new trade lines.

Set up real‑time alerts for any inquiry or new account, verify every vendor before extending credit, and run a monthly reconciliation of all reported balances. Train employees to spot phishing attempts, enforce strong passwords on financial systems, and audit internal controls quarterly to catch unauthorized activity before it dents your FICO business score.