Your business credit score affects your ability to access government-backed loans, lines of credit, and some incentive programs. Understanding how business credit works and taking steps to improve your score can expand the funding options available to your Texas business.
Business Credit Bureaus
Three major bureaus track business credit:
- Dun & Bradstreet: Uses the PAYDEX score (0 to 100). A score of 80 or above is considered strong.
- Experian Business: Scores range from 1 to 100. Higher scores indicate lower risk.
- Equifax Business: Uses multiple score types including a Payment Index.
Factors That Affect Your Score
- Payment history: The most important factor — pay all bills on time or early
- Credit utilization: Keep balances below 30 percent of available credit
- Credit mix: Multiple types of credit accounts show financial maturity
- Business age: Older businesses generally have stronger credit profiles
- Public records: Bankruptcies, liens, and judgments severely impact scores
Steps to Improve Your Score
- Register for a D-U-N-S number with Dun & Bradstreet (free)
- Pay all bills early, not just on time — early payment builds PAYDEX scores faster
- Open trade credit accounts with suppliers that report to business credit bureaus
- Use a business credit card and pay the balance in full each month
- Resolve any outstanding liens, judgments, or collections
- Monitor your business credit reports regularly for errors
Programs That Do Not Require Credit Checks
Many Texas programs do not use credit scores in their evaluation:
- Texas HUB certification: No credit check required
- Skills Development Fund: Based on training plan, not credit
- WOTC tax credits: No credit check
- SBIR/STTR grants: Based on research merit, not credit
- Property tax abatements: Based on investment and job creation, not credit
Full list of no-credit-check programs.
Find Programs That Fit Your Credit Profile
Our screening report matches programs to your specific situation, regardless of credit score. We identify both credit-dependent and credit-independent programs. Start your free screening →