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How to Pull Business Credit Reports to Know If Your Clients Will Pay

Author: Ann Marie Smith
Published: 2021-05-03

Extending credit is always a risk, but it is riskier now than in the past. Even as the economy recovers, experts expect credit defaults to be higher than normal for the next two years. In the U.S., the rate of credit defaults is expected to rise another 22% by the end of 2021 — the highest rate since 2008-2009.

You can better assess the financial stability of your customers by pulling a business credit report on them. Any time you are taking on a new customer or offering new credit lines to existing customers, you should examine their business credit reports to know if your clients will pay.

Pull Credit Reports for Business

When you provide goods to customers that do not pay, you lose twice. You do not get paid for what you have provided, but you also still have to pay for the goods. If you are providing services, you also lose the time and effort you spent servicing your clients. Pulling a business credit report is your best solution to determine the financial health of your customers to mitigate your risk.

It is easier than you might think to pull credit reports for business. Unlike consumer credit reports that require permission from the consumer, you can check the credit for any business at any time without needing to get permission first.

Like consumer credit reports, business credit reports provide a snapshot of a company’s financial picture, but they also provide greater detail. When you pull credit reports for business purposes, you can see potential warning signs of financial stress and whether they are paying other suppliers on time.

A business credit report shows you how a business uses credit and if they do so responsibly. Pulling a business credit report can help you make better credit decisions. It can also save you time pursuing late payments and collections.

Three major reporting agencies — Experian, Dun & Bradstreet, and Equifax — provide an overall credit summary score. Also, they use predictive analysis modeling to assess risk.

Experian Business Credit Report

Experian provides details on:

  • Repayment risk
  • Financial stability
  • Days beyond payment terms
  • Credit balances
  • Derogatory legal filing, liens, bankruptcies, and fraud alerts

Experian also provides recommendations on credit limits.

Dun & Bradstreet Business Credit Report

Dun & Bradstreet provides details on:

  • Business viability
  • Total loss predictor
  • Paydex score

The Paydex score indicates the risk of slow payment on invoices.

Equifax Business Credit Report

Equifax provides details on:

  • Repayment risk
  • Financial stability
  • Days beyond payment terms
  • Derogatory legal filing, liens, bankruptcies, and fraud alerts
  • Credit limit recommendations

Equifax also provides summary-level tradeline details.

If you are unsure which business credit report is right for you, download our Executive Report to learn how to select the best business credit report for your needs.

Buy Business Credit Reports

You can buy business credit reports instantly at accredit’s self-service website. You can search the available options and see samples of the Experian, Dun & Bradstreet, and Equifax reports to determine which is best for you.

Once you select the appropriate report, enter the company name, and click. You will be able to view the credit report instantly. You do not need to sign up for recurring payments or subscriptions with accredit. Also, you can pull credit reports for business as often as you want with no limits.

Buy the business credit reports you need now.

Why Pull Credit Reports for Business

When you understand the financial situation of your clients and customers, you are in a better position to make decisions about extending credit. Hopefully, you will find that your customers have a solid financial foundation and are paying their bills on time. This can give you the confidence to extend credit with minimal risk.

If they are in default with other creditors, you may want to ask for payment upfront, insist on a larger deposit, or provide different credit terms. If they are paying their bills, but paying them more slowly than you would like, you may want to offer incentives for timely payments to give them a reason to pay your invoices more promptly.

The decision to offer credit, how much credit to offer and the credit terms are yours. When you come armed with information about a customer’s payment history and financial situation, you will make better decisions to protect your business and mitigate your risks.

Search for and buy credit reports for business from Equifax, Dun & Bradstreet, and Experian.