If you are doing business with a company and plan to offer them credit, you need to ensure you will be paid on time. This is especially important in today’s shifting economy. More than 100,000 businesses are expected to close their doors during 2020 because small businesses and major companies have been forced into bankruptcy in record numbers.
One of the best ways to avoid getting caught in the middle is by pulling a Dun and Bradstreet business credit report on the company. Dun & Bradstreet’s PAYDEX scores examine the average time it takes for businesses to pay off their debts. That is valuable information when you are deciding how much credit to extend and what terms to offer.
D&B PAYDEX scores can also help you evaluate the credit for suppliers and vendors you work with. To ensure you receive orders on time, you need to be sure suppliers are financially sound. If they are having trouble paying their bills on time or are showing other signs of financial stress, they may not be able to deliver on their commitments.
A Dun and Bradstreet business credit report examines tradeline references that help businesses evaluate how promptly a company pays its bills. As other companies report payment information, a D&B business credit report evaluates the information based on the amount such that a larger transaction weighs more heavily than a small one.
It then assigns a number on the likelihood that a business will pay on time. The scale goes from 1 to 100 with a higher number indicating less risk. A score of 80 or above indicates a business usually makes prompt payments. A score that ranges from 50 to 79 is a sign that there is moderate risk for late payments. If the company’s score is 49 or less, it is classified as high risk.
D&B provides valuable information in its business credit reports such as:
- Financial Health – Each company is ranked based on its risk of going out of business. You will be able to see a benchmark that shows how they stack up against similar businesses.
- Company Profile – Company profile information includes size, revenue, years in business, and creditors. D&B also provides a Family Tree to let you know if the company is part of a larger organization or parent company.
- Total Loss Predictor – You will get an evaluation of the company’s ability to pay its bills on time based on several factors such as tradelines.
Other D&B Business Credit Reports
Dun & Bradstreet also provides other types of business credit reports that provide additional information to help you evaluate customers and suppliers.
The D&B BIR Report
A Dun & Bradstreet BIR report provides more in-depth information on publicly-traded companies. This includes additional information such as:
- Public filings
- Court actions or judgments
- Uniform Commercial Code (UCC) filings
- Suppliers that have provided credit, including total amounts and credit limits
- History and operations
The D&B Public Records Report
Dun & Bradstreet also provides a closer look at public records information such as bankruptcies, judgments, liens, suits, collections, and other filings.
Credit Reports for Your Business
Knowing how others evaluate the financial health of your business provides solid information you can use when negotiating terms or rates with lenders or suppliers. This is why you should examine your own business credit report regularly to see how other companies and lenders view you. If you are applying for a loan, you need to see the information lenders will use to evaluate your application. By checking your business credit you can clean up any blemishes before filling out a loan application and be better prepared to answer questions about your credit and payment history
Business Credit Reports from accredit
accredit makes it easy to pull Dun & Bradstreet business credit reports or reports from other major credit reporting bureaus such as Experian and Equifax. You do not need to sign up for a long-term subscription. Just find the report you need, pay, and download it.
Whether you need to check on the financial health of companies you work with or want to pull a copy of your own business credit report, accredit has the business credit reports you need.