Business credit reports: what they are, how to check your credit report

A business credit report is a document that summarizes how well a company is handling its debt.It requires your business credit score Information about your payment habits and account history.

There are three major business credit bureaus, each issuing its own business credit report. Unlike your personal credit report, you are not entitled to see your business credit report for free. However, all information from your business credit report is publicly available to paying customers, including both your company and other companies.

Here's what you need to know about business credit reports.

A business credit report is a compilation of information found in public records, as well as a company's borrowing and repayment history.

This includes details such as:

• Your business registration.

• Your industry classification.

• The number of lines of credit you have, the amount of credit you use, and the amount available.

• Past payment history (including invoices sent to collections).

• Liens, Judgments, and UCC Filings.

Business credit reporting agencies process this data to create a business credit score. It is aimed at summarizing the creditworthiness of a company to potential lenders, business partners and other stakeholders.

Business credit reports are used to assess the risk of a business. This can have a variety of effects, including:

• small business financier As part of your business loan application, we will weigh your business credit score against your credit report. It will help determine how much they will lend you and the interest rates and terms they will offer.

• Other businesses, such as suppliers, may check your business credit report before deciding whether to extend a tradeline or another form of credit.

• You can check the credit reports of other companies you are considering doing business with to understand the risks they may pose.

In general, business credit card Loans are based on personal credit, making them a good option for new businesses to obtain financing. Your business card decision doesn't depend on your business credit, but you can build your business credit by using your business cards and paying them back on time.

To obtain a business credit report, you typically need to go directly to a credit bureau. The three major business credit bureaus are Experian, Equifax, and Dun & Bradstreet. Each has its own credit report, and Experian and Dun & Bradstreet offer credit monitoring services.

Here's what you can expect from each company.

Experian's business credit report should include basic information about your business, including its owners, parent company, and subsidiaries.Also, collections, liens, judgments, bankruptcies, or UCC submission documents Problems your business has faced in the past.

Experian's CreditScore report costs $39.95. For that price, you only get to see your credit report once, including a summary of your credit and financial information. You also get Experian's Inteliscore (business credit score) and Financial Stability Risk Score, which shows how risky your business looks to lenders.

For an additional $10 ($49.95 total), you can also get certain payment history and UCC filing information.

Experian's credit reporting and monitoring service, Business Credit Advantage, costs $189 per year.

Like Experian, your Equifax Business Credit Report Includes information found in public records about your company, such as business registrations, judgments, liens, and bankruptcies. It also includes an overview of credit accounts with suppliers and financial institutions, as well as an analysis of business trends and comparisons to industry averages in terms of on-time payments.

To request a copy of your business credit report, you must contact Equifax's sales team. However, getting your own company's report is free.

Equifax does not currently offer credit monitoring for small businesses.

Dun & Bradstreet is a little different than Experian or Equifax. First, to get your credit report from Dun & Bradstreet, DUNS number, which is a unique identifier used only by that credit reporting agency. Experian and Equifax generate business credit reports more or less automatically based on what your lender reports to you. There is no need to register your business with those bureaus.

Second, in addition to the PAYDEX score (business credit score), Dun & Bradstreet's credit report includes other information designed to assess a company's viability and the likelihood of business failure or delinquency. Contains 3 scores.

And third, while Dun & Bradstreet credit reports include lawsuits, lawsuits do not always appear along with judgments and liens.

Dun & Bradstreet offers multiple credit monitoring services.

• CreditSignal, it's free. Initially, the service will provide access to Dun & Bradstreet credit scores and ratings. However, you can only see these scores for 14 days. After that, you will only be able to see if your rating has increased or decreased.

• CreditMonitor costs $39 per month. The service allows you to view your credit file as much as you like and receive notifications when other companies request your information.

Unlike your personal credit report, you are not entitled to a free copy of your business credit report.

However, there are several ways to peek at your business credit report for free. For example, Dun & Bradstreet's CreditSignal service lets you view a summary of your credit report for free, but it only gives you up-to-date information about whether your credit score has gone up or down. You can also access his Equifax business credit report for your company for free.

It's wise to check your business credit report from time to time to ensure it's accurate. Apply for a business loan. However, most small businesses probably don't need credit monitoring services unless they have special concerns.