In the past year, bankruptcy filings grew by more than 14%. If you’re one of those extending credit or investing in the 23,107 businesses that declared bankruptcy in 2024, that’s bad news. You might never get paid back and if you do get paid, it’s likely to be a fraction of what you’re owed.
Verifying a business’s financial stability is essential before extending credit, entering into contracts, or forming partnerships. Pulling a credit report on a business is an inexpensive way to evaluate your risk. Experian business credit checks as well as reports from Equifax and Dun & Bradstreet, provide the data you need to make better financial decisions.
Whether you’re evaluating a new customer, vetting a supplier, or monitoring ongoing relationships, credit reports offer details about payment history, outstanding debts, and financial health.
Credit Report on a Business: What Information Is Included?
Each credit reporting agency uses slightly different metrics to evaluate businesses and a different scoring system, but the key information typically includes: Business details: Includes company name, address, industry classification, and operational status.
- Credit scores and risk ratings: Numerical indicators of the company’s financial stability.
- Payment history and trade references: Details on how reliably the business pays its suppliers.
- Outstanding debts and legal filings: Information on liens, judgments, bankruptcies, and collections.
- Predictors: A statistical analysis of future performance based on historical and industry data.
Dun & Bradstreet, Equifax, and Experian business credit checks help you avoid partnerships with financially unstable companies, reducing your exposure to late payments, defaults, and legal issues.
When Should You Run a Business Credit Report?
When should you run credit report on a business Here are a few key times to do so:
- Before extending credit to customers: Verify the company’s ability to pay on time, preventing late payments or defaults.
- When partnering with new suppliers: Ensure financial stability to avoid supply chain disruptions.
- For ongoing vendor or client relationships: Monitor financial health regularly and spot early warning signs of instability.
- Before making investment or acquisition decisions: Evaluate the financial viability of potential partners or acquisition targets.
How to Run a Credit Report on a Business
1. Decide the Type of Business Credit Report Right for You
Compare business credit reporting agencies to evaluate which one provides the information you need. In some cases, you may want to consider pulling multiple reports to look at different factors.
You can compare Equifax, Dun & Bradstreet, and Experian business credit checks at Command Credit.
2. Gather Business Information
Unlike a personal credit check, you do not need permission to run a business credit report. However, you will need some information to make sure you get the right report. This generally includes the company’s legal name and address. It’s also helpful to get the tax identification number.
3. Pull the Business Credit Report
Command Credit makes it easy to pull a credit report from one or all of the credit reporting agencies. Simply sign up for a free account, enter business and payment information, and you can instantly download as many or as few reports as you want.
This allows you to pull business credit reports on demand without having to sign up for a subscription or sign up with multiple agencies.
4. Analyze the Data
Depending on how you plan to work with another business, the business credit score may be good enough. In other cases, you will want to dig deeper into their financial health by examining payment history, outstanding debts, credit lines, trade references, and public filings.
5. Compare Your Findings to Your Credit Criteria
You need to have established criteria for making credit decisions and apply them to the data you find in these business credit reports. Within your risk tolerance, you can customize terms and conditions according to the level of risk and your comfort level.
After you compare your findings to your criteria, you can make the best decision for your business.
Make Better Business Decisions
Running a credit report on a business can give you greater confidence in your decisions and help you avoid taking unnecessary risks.
With on-demand Dun & Bradstreet, Equifax, and Experian business credit checks through Command Credit, you get instant access to comprehensive financial insights, without the need for long-term contracts. Whether you’re verifying a new customer’s reliability or monitoring existing relationships, these reports help you safeguard your business.
Get started with Command Credit today for fast, affordable business credit checks to make smarter business decisions.