How To Check A Business Credit Report

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If you’re considering doing business with a corporation, you ought to study that company’s credit risk. To try to that (or see the credit risk of your own company), you’ll get to purchase a business credit report. Like credit line reports, business credit reports are compiled by three different credit bureaus and that they give numerical scores to estimate risk. Unlike credit line reports, the scores during a business credit report aren’t standardized, free, or compiled by an equivalent credit bureaus as compile credit line reports. Each of the business credit reporting agencies measures credit risk and creditworthiness in slightly alternative ways, and that they each have different price points.

Table of Contents

What is a business credit report?

A business credit report is an aggregate of your business’s credit history. This is often almost like a private credit report, which may be a snapshot of your personal credit use. Lenders use information found in your credit report back to judge whether you’ll repay credit extended to you.

Benefits of Business Credit checkup

A business credit checkup is quite getting business credit score and company credit report. It provides following benefits to the business owners.

  • Useful in developing strategies
  • Building good customer relationship
  • By knowing the credit reports, it’s helpful to remain ahead within the competition.
  • Keep track of past and present loans
  • Helpful in analyzing the business risks and controlling them

Obtaining a Business Credit Report

Go to the credit bureau’s website. There are three different credit bureaus that compile data on business’ credit history: Dun & Bradstreet, Experian, and Equifax. All three companies have roots dating back to the 1800s, but Dun & Bradstreet has been active within the US for the longest.

  • You’ll find the relevant a part of Dun & Bradstreet’s website at http://www.dnb.com/duns-number/lookup.html.
  • Experian’s website for checking business credit reports is http://www.experian.com/small-business/business-credit-scores.jsp.
  • Equifax’s business credit reporting section is at http://www.equifax.com/business/business-credit-reports-small-business.

Be aware of the bias

Experian weights age and size of the corporate more heavily than do the opposite ratings agencies. Therefore, smaller companies are assigned higher risk factors, even with histories of excellent payment, than are larger companies.

Tips

  • Be happy to see your own business’ credit report, a bit like you’d a partner’s or competitor’s. But remember that each one of the business credit reporting agencies offer much more sophisticated tools to watch your own credit report. For instance, you’ll add on-time payments to your own credit report (subject to verification), get alerts when new information is added to your report, and notifications when someone does an inquiry on your business.
How To Check A Business Credit Report

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