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Business Credit Glossary
Plain-language definitions for the terms you'll run into while building a commercial credit file — PAYDEX, tradelines, high-credit limits, and more.
Plain-language definitions for the terms you'll run into while building a commercial credit file — PAYDEX, tradelines, high-credit limits, and more.
Dun & Bradstreet's proprietary business credit score, on a 0–100 scale. PAYDEX is based primarily on how promptly a business pays its reported trade references — a score of 80 generally reflects consistent on-time payment. See the full D&B PAYDEX guide for how it's calculated and how fast you can realistically build one.
A reported account structured as a fixed-payment loan over a set term — as opposed to a revolving account (like a credit card) or a vendor supply invoice. Because it demonstrates the ability to manage structured, ongoing debt, underwriting algorithms generally weigh it more heavily than a simple vendor trade. See how commercial tradelines work for the full mechanics.
The highest amount ever extended or reported on a tradeline. Bureaus and lenders use this figure — not just your current balance — as a signal of how much credit capacity a business has successfully managed.
A federal tax ID issued free by the IRS to identify a business entity, separate from an individual owner's Social Security Number. Building business credit under your EIN — rather than your SSN — is what keeps your personal and business credit files separate.
A unique nine-digit identifier issued by Dun & Bradstreet, used to establish and track a business's D&B credit file. It's free to obtain directly from D&B. See our DUNS Number Registration Wizard for a step-by-step walkthrough.
A business's overall readiness to be approved for financing, credit, or vendor terms — based on both compliance details (a real business address, phone listing, entity good standing) and its actual credit file. A business can have a decent credit score and still be "unfundable" if its underlying compliance details raise red flags.
A short-term vendor trade arrangement giving a business 30 days to pay for a purchase. Some net-30 vendors report this payment history to the bureaus; many don't. See our net-30 vendor guide for which ones actually report, and their real costs.
A tradeline representing goods or services purchased on credit terms — like a net-30 vendor account — rather than an actual extension of credit. Non-financial trades still count toward a credit file, but generally carry less underwriting weight than a financial trade.
A tradeline representing a genuine loan or credit extension — such as a commercial installment loan or business credit card — rather than a vendor invoice. Underwriting algorithms generally weigh financial trades more heavily than non-financial trades, since they demonstrate the ability to manage structured debt directly. (Note: BCC Supplies' own tradeline is a commercial installment contract, not a cash loan — see our Terms for the exact structure.)
A business owner's commitment to be personally liable for a business debt if the business itself can't repay it. A "no PG" product doesn't require this commitment, meaning the owner's personal assets and credit aren't directly on the line for that specific debt. See how to build business credit without a personal guarantee.
A credit account with a set limit that can be borrowed against, repaid, and borrowed against again — like a credit card — as opposed to installment credit, which has a fixed term and a scheduled payoff date.
A nonprofit trade association, not a credit bureau, where member lenders (banks, card issuers, leasing companies) report small-business payment data that's then licensed to Dun & Bradstreet, Experian, Equifax, and LexisNexis. Business owners can't join, check, or dispute SBFE data directly. See our full SBFE breakdown for how it works.
An organization — such as Dun & Bradstreet, Experian Business, or Equifax Business — that collects and reports data on a business's credit history. These are separate from personal credit bureaus (Equifax, Experian, and TransUnion's consumer divisions) and use different scoring models entirely. See the founder's guide to business credit bureaus for a full breakdown.
A hybrid business credit score ranging from 0–300, used primarily by the SBA and its lending partners to pre-screen loan applications. See the FICO SBSS guide for how it's calculated and what threshold currently matters.
Experian's proprietary business credit scoring model. See the Experian Intelliscore Plus guide for how it differs from D&B's PAYDEX.
See how a commercial installment tradeline builds every metric on this page, from day one.
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