Just like with a personal credit report, you can get an idea of the financial health of a business by pulling a business credit report. However, there is one key difference. While you need permission to access someone’s credit history, you do not need permission to pull business credit reports. You can get the latest financial information from one of the business credit reporting agencies at any time.
Why Do Companies Check Business Credit Reports?
Business credit reporting agencies keep up-to-date records on the credit history of businesses, producing a credit score to evaluate risk.
Evaluating Credit Risk
Armed with information about the financial health of a business, you can make better decisions about whether to extend credit, how much credit to allow, and under what terms.
Evaluating Suppliers or Partners
Business credit reports are helpful if you are thinking about taking on business partners or suppliers. Reviewing their credit history can give you confidence that they will be able to deliver on their promises.
Monitoring Current Accounts
Nearly 600,000 businesses close their doors every year. Even if you have a customer or client who has paid their bills on time for years, things can change quickly. It is a good idea to pull business credit reports on occasion for your current accounts to make sure they remain a good credit risk.
Monitoring active accounts can give an early warning about changes in your customer’s or client’s credit before accounts become delinquent.
Evaluating New Businesses
When new businesses open, they may have limited credit histories. Examining their business credit report can provide insights into who is behind the business and whether they have solid credentials. Business credit reports can also help to verify business identity to avoid becoming the victim of business impersonation fraud.
Checking On Your Business
You may also want to pull a report on your business to see how others view your financial health. This can be especially important if you are going to apply for a loan in the future or want credit from other businesses. It gives you an idea of what they see and can help you negotiate better rates.
What Is on a Business Credit Report?
There is slightly different information on reports depending on which business credit reporting agencies you use, such as a Dun & Bradstreet business credit report or one from Experian or Equifax. Typical information includes:
- Payment History and Trends: Details on the number of trade lines, total balance, and highest credit extended, along with payment patterns such as days past due
- Public Records: Bankruptcies, judgments, or liens against the business
- Credit Scores: Credit scores calculated by the bureaus based on payment history and other factors
- Business Information: Incorporation dates, executive names, business structure
Each of the credit bureaus provides slightly different information, so you will want to review the details before you decide which type of report works best for you.
How to Get a Business Credit Report
The easiest way to get a business credit report from Experian, Equifax, or Dun & Bradstreet is to go to Command Credit. You can instantly pull reports from one or all of these credit bureaus without having to sign a long-term contract.
Enter the business name and some additional information online, pay your fee online, and pull the business credit report instantly—no waiting.
You can download the business credit report, check out the credit score, and review any other pertinent information to make better credit decisions and lower your financial risks.
Today, more businesses are working across borders. If you need an international business credit report, Command Credit also offers reports from Credit Reports World.
Which Business Credit Report Is Right for You?
Each of the business credit reporting agencies has its own method for assigning risk scores and assessing business. Dun & Bradstreet’s PAYDEX focuses more heavily on how promptly a company pays its bills. Experian’s Intelliscore uses predictive intelligence to forecast how likely a business is to stay current with its payments in the future.
You can compare the differences between the three different types of business credit reports and see samples on our website to help you get exactly what you need.
Get on-demand business credit reports online instantly. Contact Command Credit to get started.
You can also download our free eBook, How to Select the Right Business Credit Report, to get a more in-depth look at what each type of report offers.