Your Number 1 Source for Business Credit Reports
As a business leader, you know that extending credit involves risk. Whether it's onboarding new clients or evaluating suppliers, every transaction can potentially jeopardize your cash flow. Relying solely on the information provided by a company can lead to costly mistakes. Errors, hidden financial troubles, or even deliberate omissions may not surface until it's too late.
What if you could have a clearer picture of your business partners before making those critical decisions?
That's why you need a reliable source for business credit reports.
Finding a Dependable Business Credit Report Source
You need reliable, real-time financial data to assess risk accurately. By running detailed business credit reports, you can access critical insights like payment histories, public records (including bankruptcies and liens), and comprehensive credit scores.
This data helps you answer key questions:
- Can this business meet its financial obligations?
- Should you adjust terms and credit limits or even deny credit entirely?
Why Command Credit?
Command Credit provides you with instant access to comprehensive business credit reports from the top three agencies: Experian, Equifax, and Dun & Bradstreet. With our helpful consultants, you can pull as many or as few reports as needed without the burden of long-term contracts or subscription fees.
Our easy-to-use platform lets you:
- Instantly download business credit reports 24/7
- Choose reports from one or all three agencies
- Get detailed information on trade lines, legal filings, and financial risk assessments
We also offer reports for international businesses, helping you expand confidently across borders.
Making Sound Lending Choices - One Business at a Time
Unlike other services, we prioritize flexibility and ease. You only pay for the reports you need—there's no subscription, no commitment, and no waiting. Plus, you have the power to compare different types of business credit reports to ensure you're getting exactly the information you need. Whether you're evaluating new clients, monitoring existing accounts, or checking your own business's credit health, our platform makes the process seamless.
When you choose Command Credit, you're not just pulling a report—you're protecting your business from unnecessary risk.
Run a Business Credit Report Today
Don't leave your business exposed to financial uncertainty. Start pulling business credit reports with Command Credit today to make smarter, more informed decisions.
Running a Business Credit Check: Essential Information on Bureaus, Reporting Agencies, and Permission Requirements
A business credit report can tell you a lot about your customers and suppliers. By providing detailed reporting on payment history and financial health, credit reports help you find the information you need to make credit decisions and reduce risk in your business.
How do you run a credit check on a business? We have the answers along with what information is needed for a business credit check, a breakdown of the three major business credit bureaus, and how to use credit checks responsibly and legally.
What Are the Three Business Credit Bureaus?
The three major business credit bureaus are:
- Dun & Bradstreet (D&B)
- Equifax
- Experian
Each business credit reporting agency uses its own methodology to calculate credit scores and provides a variety of information to help you make better credit decisions.
Dun & Bradstreet
Dun & Bradstreet focuses exclusively on business credit. D&B examines public records, industry data, and historical data on how a company interacts with suppliers and whether it pays its bills on time.
The PAYDEX score is a 100-point scale that reflects a company's payment history and indicates the likelihood you'll get paid on time when you extend credit to a customer. There are some limitations, however. D&B only evaluates transactions that are reported to D&B. In addition, not all businesses have signed up for a DUNS number and may not be tracked.
Key data points in a D&B report include:
- Delinquency Predictor Score: Assesses risk of late payments or bankruptcy within 12 months
- Failure Score: Evaluates the probability of a business seeking legal relief from creditors or ceasing operations with unpaid debts
- Supplier Evaluation Risk Rating: Measures the likelihood of a business interrupting goods/services delivery
- D&B Rating: Evaluates creditworthiness based on financial statements and public records
Equifax
Equifax uses trade credit information, data from public records, and data collected by the Small Business Finance Exchange (SBFE) to produce a credit score.
Equifax business credit reports include:
- Payment Analysis: Shows 12-month payment history and comparison to industry standard
- Credit Risk Score: Predicts probability of severe delinquency (90+ days) or charge-off within 12 months. Scores range from 1010-992, with higher numbers indicating lower risk
- Business Failure Score: Evaluates the likelihood of bankruptcy (formal or informal) within 12 months. Scale of 10001610, with higher scores suggesting better business stability
| Bureau | Benefits | Key Features |
|---|---|---|
| Dun & Bradstreet (D&B) |
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| Equifax |
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| Experian |
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The Importance of Business Credit Bureaus and Business Credit Reports
Business credit reporting agencies gather information and analyze the financial health of organizations. Business credit reports help you assess the amount of risk associated with extending credit or relying on a supplier. By providing a snapshot of a business's credit use, you can make better decisions for your business.
Evaluating Suppliers
| Criteria | Description | |
|---|---|---|
| Financial Stability | Payment History | Review vendor's payment track record with their suppliers |
| Bankruptcy History | Check for any past or pending bankruptcies | |
| Years in Business | Evaluate the length of business operations | |
| Supply Chain Risk | Assess the likelihood of delivery disruptions | |
| Decision Making | Credit Score | Compare credit scores against minimum requirements |
| Industry Comparison | Review performance vs industry standards | |
| Performance Trends | Monitor changes in supplier performance metrics |
Evaluating Customers
| Criteria | Description | |
|---|---|---|
| Initial Screening | Business Verification | Confirm legal business status and ownership |
| Payment History | Review payment behavior with other vendors | |
| Credit Utilization | Check current credit usage patterns | |
| Financial Health | ||
| Credit Terms | Credit Limits | Determine appropriate credit ceiling |
| Payment Terms | Set payment timeline (Net 30/60/90) | |
| Personal Guarantees | Assess the need for additional security | |
| Credit Progression | Plan for future credit limit increases | |
| Risk Management | Credit Tiers | Establish different levels of credit access |
| Monitoring System | Set up an ongoing credit review process | |
| Alert System | Create triggers for credit issues | |
| Collection Process | Define steps for overdue accounts | |
| Monitoring | Score Changes | Track credit score trends |
| Payment Behavior | Monitor current payment patterns | |
| Negative Trends | Watch for deteriorating metrics | |
| Terms Updates | Review and adjust credit terms as needed |
Do You Need Permission to Run a Business Credit Check?
Unlike consumer credit reports, you do not need permission to run a credit check on a company. However, many businesses ask for permission as part of their credit application.
In some cases, you may want to check the personal credit of a business owner. This is a good idea for startups or, new businesses, those with limited credit histories, or independent contractors. In this case, you need explicit permission.
So, can you do a credit check without permission? Yes, for businesses. No, for consumers. Still, it's a good idea to ask for permission in either case to prevent problems down the road.
What Is the Penalty for Running Credit Without Permission?
As long as you have a legitimate business reason for running a business credit check, you're OK. However, the Fair Credit Reporting Act clearly states that consent is required for consumer credit reports. You need explicit permission (get it in writing).
Penalties for running a consumer credit report without permission can include fines of up to $1,000 per violation. Companies may also be liable for any damage that occurs related to the violation and, in some cases, face criminal charges for knowingly and willingly obtaining permission under false circumstances. You must have a permissible purpose, such as evaluating a loan or considering granting trade credit.
Some states have statutes, such as the California Consumer Credit Reporting Agencies Act (CCRAA), which can include fines up to $2,500.
How to Run a Credit Report on a Company
You can go to any of the three business credit reporting agencies and sign up to purchase reports, which may require a subscription. However, it's a bit challenging to compare different reports on each of the websites. It can also be more work if you want to get reports from more than one agency.
The easiest way to pull business credit reports from Equifax, Experian, or Dun & Bradstreet is with Command Credit. You can get credit reports from any of three agencies (or all of them) without having to go to each individually or get locked into a long-term contract. With Command Credit, you can do it all online in a few simple steps.
- Sign up for a free account.
- Enter the business name and some additional information.
- Pay your fee.
- Download the report instantly with no waiting.
How to Run a Credit Report on a Business
If you need to check on an international business, Command Credit offers reports from Credit Reports World.
Evaluating Business Credit Reports: Looking for Red Flags
When evaluating a business credit report, certain warning signs should give you pause. Here are some of the most common red flags that require further investigation.
Excessive Credit Utilization
A business that relies heavily on available credit might be struggling with cash flow. High credit utilization – typically above 30% – indicates that a company is frequently borrowing money. While some industries naturally require more credit, consistently high utilization can suggest poor financial management or a lack of liquidity to cover immediate expenses.
For example, imagine a supplier with a credit utilization rate of 80%. This could mean they're overleveraged, and any unexpected financial hiccup might delay their payments to you.
Late Payments or Payment Delinquencies
One of the clearest indicators of financial trouble is a poor payment history. Frequent late payments or delinquencies in a credit report show a pattern of behavior.
A report with a high number of late payments should prompt further investigation. Are these delays due to temporary cash flow challenges, or do they reflect deeper operational issues? Persistent lateness could signal that the company prioritizes other obligations, potentially impacting your cash flow.
Sudden Changes in Payment Behavior
A significant shift in payment trends – such as moving from paying invoices early to consistently paying late – can be a red flag. This behavior often indicates a recent financial downturn, such as losing a major customer, facing unexpected costs, or mismanaging resources.
If a business that once had a strong payment record suddenly begins paying 60 days late, it's worth asking why. It's worth talking to the company to find out if it's a temporary issue or a sign of larger problems.
Legal Filings and Public Records
Bankruptcies, liens, and judgments in a credit report are significant red flags. If a credit report reveals a recent bankruptcy filing, consider how it aligns with your risk tolerance. Even if the company has restructured and resumed operations, its financial standing might still be concerning.
Similarly, a lien against the business could complicate its ability to secure new funding or deliver on contracts.
Frequent Changes in Ownership or Structure
Frequent changes in a company's ownership, name, or corporate structure might seem harmless but can point to instability. These changes can signal management turnover, attempts to avoid liabilities or other hidden risks.
For example, a company that changes names multiple times within a short period might be trying to distance itself from past financial troubles.
Negative Industry Trends
Sometimes, the problem isn't just with the company but with the industry in which it operates. Some credit reports include insights about broader industry performance, such as declining demand, increasing competition, or supply chain disruptions.
If a business operates in a struggling sector, even a strong credit score may not fully reflect the risks involved.
Unverified or Missing Information
A lack of critical information in a credit report can be just as concerning as negative data. Missing details such as key financial figures, ownership data, or payment history might suggest that the business has failed to update its records with credit bureaus or worse, is intentionally withholding information.
In these cases, it's vital to request additional documentation directly from the company or consult other sources to fill in the gaps. Transparency is crucial when making informed decisions, and any unwillingness to provide information should be treated with caution.
Frequently Asked Questions – FAQs
How often should you check a business credit report?
You should check a business credit report when you're first considering doing business with the company and periodically. Monitor financial health, detect changes in creditworthiness, and identify potential risks. For high-risk or key partners, consider more frequent reviews.
What is the best credit reporting agency?
There isn't a single best credit reporting agency, and it depends on your needs. Dun & Bradstreet, Experian, and Equifax offer comprehensive business credit reports, each with unique strengths.
Why are business credit reports important?
Business credit reports provide critical insights into a company's financial stability, payment history, and risk level, helping you make better decisions about extending credit, forming partnerships, and managing risks.
Should I check the credit report for my business?
Yes. Checking your business's credit report helps you understand your financial standing, identify errors, and see how others view your business.