Glossary

Business Credit Glossary

Every term you'll run into across this site, defined plainly in one place — click any letter to jump straight there.

0% Intro APR: A promotional period, often 12 months, during which a business credit card charges no interest on carried balances — used deliberately to fund inventory that will sell through before the promotional window ends.
Business Credit: A credit profile tied to your business's EIN rather than your personal Social Security number, built through trade lines, vendor accounts, and business credit cards that report to business credit bureaus separately from your personal credit file.
Capital Stack: The sequence of funding sources a business layers together as it grows — typically starting with vendor credit and a business card, then adding a line of credit or larger financing as revenue and credit history increase.
Charge Card: A card with no preset spending limit that must be paid in full each billing cycle — no revolving balance, no APR. Brex is an example on this site; most other business cards here are revolving credit cards instead.
Credit Utilization: Your card balance as a percentage of your total available credit. Generally, staying under 30% avoids working against your score, and under 10% specifically before a lender pulls your file for a new application.
DUNS Number: A unique 9-digit identifier assigned by Dun & Bradstreet to a business, required before D&B can build a credit file for that business. Other bureaus, like Experian Business and Equifax Business, use their own identifiers instead.
EIN (Employer Identification Number): A free 9-digit number issued by the IRS that identifies a business for tax purposes — separate from your personal Social Security Number, and what business credit bureaus track activity under.
Equifax Business: One of the three major business credit bureaus, alongside Dun & Bradstreet and Experian Business. Tracks business credit activity under its own scoring model, separate from D&B's PAYDEX or Experian's Intelliscore.
Experian Business: A business credit bureau that scores commercial credit files using its Intelliscore Plus model. Some Net-30 vendors report here in addition to or instead of Dun & Bradstreet.
Fundability: How ready a business appears to lenders and vendors based on its legal structure, documentation, and credit history — things like a properly formed LLC, consistent business address, and an established bank account all factor in.
Intelliscore Plus: Experian Business's commercial credit scoring model, ranging from 1–100. Higher scores generally indicate lower predicted credit risk, similar in purpose to D&B's PAYDEX score but calculated independently.
Inventory Financing: Financing tied specifically to a purchase order or inventory shipment, typically used once order sizes outgrow what a business credit card's limit can cover.
Line of Credit: A revolving pool of business capital you can draw from as needed, up to a set limit — typically used once a business's funding needs exceed what a credit card's limit covers, without committing to a fixed-term loan.
LLC (Limited Liability Company): A business structure that legally separates the owner from the business, providing liability protection and making it possible to build a business credit file distinct from personal credit.
Net-30 Account: A vendor account that lets you buy now and pay the invoice within 30 days, with the payment history reported to business credit bureaus — used to establish a business credit file's first trade lines.
PAYDEX Score: Dun & Bradstreet's business credit score, ranging from 1–100, based on how promptly a business pays its bills. A PAYDEX of 80 or higher is generally considered a sign of reliable, on-time payment history.
Personal Guarantee (PG): A commitment making you personally liable for a business debt if the business can't pay it. Most business credit cards for new or early-stage businesses require one, even though the card reports primarily to business bureaus.
Revenue-Based Financing: Financing that weighs a business's sales history more heavily than its credit file, moving faster than traditional loans at a higher effective cost — a fit for businesses with strong revenue but a thin credit history.
Revolving Credit: A credit line you can borrow against, repay, and borrow against again up to a set limit — how most business credit cards work, distinct from a one-time loan or a charge card.
SBA Loan: A loan partially guaranteed by the U.S. Small Business Administration, generally carrying a lower cost of capital than other financing but requiring more documentation and a longer approval timeline.
Sole Proprietorship: An unincorporated business with no legal separation between the owner and the business. Makes it harder for bureaus and lenders to treat any credit as distinct from the owner's personal file, compared to an LLC.
Trade Line: A credit account reported to a credit bureau — each Net-30 vendor account or business credit card you hold is its own trade line, and the mix and payment history across them shape your business credit file.
Vendor Credit: Credit extended by a supplier, most commonly through a Net-30 account, used specifically to build a business credit file rather than to finance large purchases.
Working Capital: The capital available to cover a business's day-to-day operating costs and short-term funding gaps — like the time between paying a supplier and receiving payout from a sales channel.

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Start with the Business Credit basics guide →