What are business credit bureaus and how do they work?

Erica Dorfman for Brex

What are business credit bureaus and how do they work?

Financing a young company often depends on a record most founders don’t even realize exists: their business credit file. These files are created and maintained by business credit bureaus, which are private companies that track how a business pays its bills, manages debt, and handles financial obligations. Vendors, lenders, and landlords use these reports to price risk and set terms, which means a strong profile can lower costs and open doors to new opportunities.

Behind the scenes, business credit bureaus compile payment histories, card and loan performance, and public records into a report on each company. Because not every creditor reports to every bureau, coverage is uneven. The same business can look diffe