The business credit bureau monitors businesses. Business credit reporting bureaus gather data from many sources, including information from lenders regarding payment history, and information from suppliers.
There are three main business credit bureaus and a few more. They also collect information about business credit reporting agencies regarding bankruptcies and liens as well as judgments involving companies. This information is also available in public records.
You know that information about a company’s financial stability can only be as accurate as the data provided. At least once per year, you should review your credit report.
What is a Credit Report and Score?
A business credit report contains information about a company. A business credit score is calculated based on the information in the business credit report. A rating will be assigned to the business credit risk score. This rating can range from poor (business failure score), to excellent. Anything above 670 is considered good.
The basis of the business credit report is the basis for the business score. This score is used to assess the creditworthiness of a company.
What length of time does information affect a business credit report?
Some information can have a long-lasting impact on business credit reports, which in turn affects credit bureaus’ business credit scores.
- Judgments – 6 years and 9 month
- Bankruptcy – 9 Years and 9 Months
- Tax liens – 6 Years and 9 Months
- Trade data – 36 months
- Payout history – To determine the term of the loan
- Financial statements – The past three years
Why are Business Credit Reports Important?
A business credit bureau compiles your business credit reports. These reports are vital for you and other businesses.
Your credit score directly affects your small business credit reports. A credit score of good or better will make it easier to get loans or extend credit for purchases. You can fix credit issues by making it a habit to regularly check your company credit reports. These could be errors.
Other businesses can view your small business credit reports, including suppliers and vendors. A good credit report makes it easier for suppliers and vendors to do business with your company. You can view your credit reports for small businesses to check who has viewed them.
Where does business credit information come from?
There are many data points that can be added to your credit file for business:
- Public records
- Public utilities
- real estate taxing agencies
- State taxing agencies
- Court records relating to judgments
- Court records regarding bankruptcy filings
- Top Business Credit Reporting Bureaus
Each credit reporting agency has its own focus. Your personal credit score will be included in your FICO Small Business Scoring Service credit report agency.
Experian, Equifax, and Dun & Bradstreet are the three major business credit bureaus. Each one of these business credit agencies has information about lenders, suppliers, as well as vendors. To gather data, each business credit reporting agency uses the Small Business Finance Exchange report (SBFE).
We have more information about the Big 3 as well as 2 other credit bureaus/reporting companies for business:
Top 5 Business Credit Bureaus and Reporting Companies
1. Dun & Bradstreet
The Dun & Bradstreet credit scores are a staple of credit bureaus. The Dun & Bradstreet credit report focuses on supplier and vendor transactions, as well as other data that is business-to-business. These are important indicators of a company’s financial health. Potential business partners, lenders, and other businesses can view the Dun & Bradstreet credit report. A Paydex score is a rating that Dun & Bradstreet credit scores receive. Paydex scores are based on information such as trade payment history, outstanding business loans, payment habits, and m
Equifax, which provides Equifax business credit reports, is another respected name in the business credit bureaus. Equifax business credit scores include small business lender reports, credit history information, and data about judgments, bankruptcies, and liens. Equifax, one of the three major business credit reporting agencies is reliable.
TransUnion, another credit reporting agency for businesses, is also available. TransUnion collects credit transactions and draws from public reports. TransUnion combines the data and issues commercial credit reports. This assigns a number that determines financial stability risk.
5. FICO SBSS Score
The FICO Small Business Scoring Service, the only agency to include personal credit scores, is the Small Business Scoring Service. This allows suppliers and investors to review the personal credit reports and financial obligations of business owners. FICO SBSS Score can range from 1 to 300. This rating is required by SBA for loan applications and many other lenders.
How to Access Your Business Credit Report
It is simple to access your business credit information. Once a year, you can receive free credit reports for your business. You will usually have to pay a fee to obtain more than one report for your business or a report on another company.
Can you run a credit report on a business?
It’s standard practice for companies that offer business credit accounts. Before you give credit to a vendor or supplier, A small business should evaluate any potential business risks by reviewing the company’s credit history. A company without a strong credit rating of at minimum Good will be denied credit. A business owner can set a credit limit for the company or decide not to do business.
Is an LLC allowed to have its own credit score?
Yes. No matter what entity is chosen to run the business, they will all have a credit score. Credit scores are available for corporations, LLCs, and other businesses.