How to check your business credit score

the first class business credit score This gives you access to the most competitive rates and terms for financing and business insurance, and can also open the door to potential partnerships and trade credit agreements.

Unlike personal credit scores, which are standardized and freely available, different business credit bureaus use different scoring systems and often require you to pay a fee to view your report.

A company's credit score is publicly available, so it's important to monitor your reports. That means potential investors, partners, and lenders can use it to assess a company's financial health.

A business credit report includes a credit score, along with other insights into a company's financial health and creditworthiness. This includes general information about your business, such as number of employees and ownership, as well as details such as credit accounts, payment history, collections, and public filings.

Dun & Bradstreet, Experian, and Equifax are the three major business credit bureaus that collect data about businesses. The information in the reports is typically the same, but the collection and validation process may differ slightly.

When applying, small business loans Or if you seek another form of business financing, lenders typically use your credit report to obtain your credit score and other information about your business.

Each credit bureau considers different factors from your credit report when calculating a business's credit score, but most consider a combination of the following:

• Age of oldest financial account.

• Available revolving payment limit.

• Payment history to creditors and vendors.

• Public records of liens, judgments, or bankruptcies.

Keep track of your score and check the financial health of other businesses by pulling . corporate credit report From each of the major business credit bureaus.

Lenders may use different agencies, so it's wise to check your business's credit score with multiple agencies.

Businesses do not automatically obtain credit scores from Dun & Bradstreet. The first thing you need is DUNS number — It's free to apply, but it may take up to 30 days to receive it. Once established, Dun & Bradstreet evaluates the financial health of your business and assigns you a Paydex score, delinquency score, failure score, and several other ratings and predictors.

Paydex evaluates payment performance and companies are rated with a score from 0 to 100, with a higher score indicating a better payment history. The delinquency score (101-670) assesses the likelihood that a business will be late on payments (91 days or more) over the next 12 months. The higher the score, the lower the risk.

The Failure Score, formerly known as the Financial Stress Score, ranges from 1,001 to 1,875 and predicts whether a company will go bankrupt or go out of business without paying its debts within the next 12 months. A low failure score means high risk.

You can check your Paydex score (and three other ratings) for free with Dun & Bradstreet's CreditSignal package. This package includes alerts about score changes and business credit inquiries. Upgraded subscriptions give you access to more ratings and deeper analytics, plus additional alerts and monitoring for $15 or $39 per month.

Experian's CreditScore report includes your business's credit score, financial stability risk rating, payment habits, and account history.

Business credit scores (range 1 to 100) primarily look at payment behavior on commercial accounts, such as the number of delinquent accounts and the number of accounts with a net payment deadline of more than 30 days. The higher the score, the lower the risk of delinquent payments.

Experian's Financial Stability Risk Rating (1 to 5) uses factors such as commercial collection accounts, credit utilization, and company and industry risk factors to calculate the risk of “payment default and / or predict the likelihood of bankruptcy.” A low score indicates a low risk of severe financial hardship.

Purchase CreditScore reports from Experian's website for $39.95 per report, or get unlimited access to Business Credit Advantage for $189 per year for alerts, monitoring, and additional analysis. Experian does not provide free business credit reports.

Credit risk scores range from 101 to 992 and assess the likelihood of business failure or late payments. The higher the score, the lower the risk. The Payment Index score (1-100) evaluates your payment history, with missed payments lowering your score. Additionally, the risk of failure score (1,000 to 1,880) aims to predict the probability that a company will cease operations within the next 12 months. The lower the score, the higher the risk of failure.

Owners can request a company report for free, but there are some caveats. First, you can only get your credit report if you are applying for business credit. business credit line or business credit card. Next, you will need to contact an Equifax representative and provide proof of your business credit application.

Want insight into another business? Contact Equifax to purchase credit reports for your competitors, partners, or suppliers. Unlike other business credit reporting agencies, Equifax does not publish prices on his website.

If you have a low business credit score, or no score at all, it can be difficult and expensive to obtain a business loan or payment agreement with a supplier.

• structure your business As a limited liability company (LLC), partnership, or corporation rather than as a sole proprietorship.

• Opening a business bank account.

• Get and use a business credit card.

• Establish business lines with suppliers.

• We work with creditors who report to major corporate credit bureaus.

Making on-time payments, correcting mistakes on your credit report, and managing your business debts will help ensure your business's credit score is maintained.