Understanding business credit bureaus is critical to navigating business credit and learning which actions will drive business credit growth.
We break down the major business credit bureaus and other essential information you need to know about these organizations below.
What Are The Top 3 Business Credit Bureaus?
1. Dun & Bradstreet
Dun & Bradstreet is the most famous business credit bureau. They’ve been operating since 1841.
Dun & Bradstreet offers a wealth of credit solutions that would require its own guide to fully cover. However, to condense what you’ll likely take advantage of as a business owner, the main services and terms to know include:
- DUNS Numbers: Every business owner will need to register for a DUNS number. They’re frequently asked for by lenders. A DUNS number is a nine-digit identifier that helps you establish your business with Dun & Bradstreet, activate your Business Identity profile, and make it easier for you to start financing your business. You can get a DUNS number for free, but they do offer you the ability to pay a small fee to expedite the process. They’re an essential if you’re looking to learn how to build business credit.
- The Paydex Score: The PAYDEX Score is a score that ranges from 1 to 100 and gives other businesses insights into your past payment performance with vendors and suppliers. Having a score of 80 indicates that you make all of your vendor payments on time. Having a score above 80 indicates that you tend to pay your bills off earlier.
- The D&B Delinquency and Failure Score: Dun & Bradstreet, like most other business credit bureaus, features several scores designed to help you and others understand your financial health. Some of these include the D&B Delinquency Score and the D&B Failure Score. The former, with a score ranging from 101 to 670, illustrates the likelihood that a business will make severely delinquent payments (91+ days or more) in the next 12 months. The latter, with a score of 1001 to 1875, illustrates the likelihood that a business will fail and be unable to pay creditors.
Most business owners are already going to be familiar with the next two business credit bureaus: Equifax Business and Experian Business.
2. Equifax Small Business
Equifax Small Business offers a wide range of business credit solutions. These include credit risk tools, identity and fraud tools, and verification. They even offer support with data-driven marketing and workforce management.
They, too, offer several business credit scores you’ll be looking at as you build business credit. This business credit reporting agency uses the:
- The Payment Index: The Payment Index functions similarly to the D&B PAYDEX Score on your Equifax business credit report. Ranging from 1 to 100, higher scores will indicate to others that you pay your bills on time or earlier.
- Business Credit Risk Scores: There are two business credit risk scores offered by Equifax: The Commercial Delinquency Score (CDS2) and the Financial Trade Delinquency Score (FTDS). The CDS2 ranges from 397-695, and is used to determine the likelihood of severe delinquency (over 90 days). The FTDS also measures delinquency, although this score measures delinquency to a financial institution for a small business banking trade.
- The Business Failure Risk Score: The Business Failure Risk Score, which ranges from 1,000 to 1,610, is designed to gauge the likelihood of voluntary or involuntary bankruptcy in the next 12 months.
3. Experian Commercial
Experian Commercial is another business credit bureau that offers a wealth of services and resources to support your small business. They feature ample content and tools for business credit.
However, you could also turn to them for support with marketing, financing, and beyond.
Experian Commercial offers two credit scores to help you track your financial health. These Experian Business scores include:
- Experian Intelliscore Plus: The Experian Intelliscore Plus is the Experian business credit score that predicts the likelihood of delinquency. The Experian Intelliscore Plus will range anywhere from 1 to 100, and lower scores will indicate that a business is likely to be delinquent. The higher the score, the lower the risk of delinquent payments.
- Experian Financial Stability Risk Score: The Experian Financial Stability Risk Score features a score range and a risk class. This score ranges anywhere from 1 to 100. Depending on where you fall, you’ll also be given a risk class that ranges from 1 to 5. If you have a score of anywhere from 66 to 100 and a risk class of 1, for example, you’re very unlikely to go bankrupt or default on your financial obligations. If you have a score of 1 to 3 and a risk class of 5, you’re considered high risk.
Other Business Credit Bureaus
Creditsafe
Working with vendors and lenders who report to the three major business credit bureaus is the primary focus when researching business credit solutions.
However, there are other business credit bureaus that can help build your score. Creditsafe is one such business credit bureau.
Founded in 1997, Creditsafe is a bit newer than other business credit bureaus. That being said, many do report business transactions to them.
Creditsafe features two scores: The Creditsafe business credit score and the Creditsafe international score.
The Creditsafe business credit score uses a score range of 1 to 100. It’s designed to predict the likelihood of a business becoming severely delinquent or going bankrupt over the next 12 months. Scores of 71 to 100 indicate a very low risk.
The other score some businesses might be interested in is the international score.
The international scoring system doesn’t use numbers. Rather, it gives you a rating of A to E. A is the least risky in regard to potential delinquency and bankruptcy. Meanwhile, a score of E is a business that is not rated.
International businesses might use your international score to get a better idea of your financial health and creditworthiness. The grading system is useful because it offers insights without sticking to scoring systems that may not be relevant elsewhere.
LexisNexis Risk Solutions
LexisNexis Risk Solutions leverages alternative data to provide credit insights that you might not receive from traditional credit data.
They actually offer numerous scores and risk profiles. These include credit risk solutions, insurance risk solutions, driving risk solutions, and more.
Speaking to their small business credit score solutions, this consists of a score ranging from 501 to 900. The score blends data from the SBFE to get a more comprehensive overview of financial health. Those with a score closer to 900 pose the lowest credit risk.
If you have a score that falls below 501, this simply means that there’s not enough data available to give you a score yet. Over time, you should see that change if LexisNexis is a credit bureau that your vendors or lenders are reporting to.
The SBFE
The Small Business Financial Exchange (SBFE) is a name you’ll see crop up often. However, the SBFE is not one of the business credit reporting agencies. It also doesn’t create any credit reports.
So, how does it play a role in your business credit? Why do lenders report to the SBFE?
The SBFE operates a data exchange that aggregates payment data from its 140 members. This data is then given to SBFE partners, such as D&B, Equifax, Experian, and LexisNexis Risk Solutions.
That data is what is used to create the predictive scoring models that you see above.
So, while the SBFE is not a credit bureau, having lenders and vendors report to the SBFE is still beneficial to your business credit score. If it’s going to the SBFE, it will help build your business credit.
FICO SBSS Score
FICO isn’t a credit bureau, but it does produce a business credit score. Much like the SBFE, we feel that it’s important to mention the FICO SBSS score here because it can play a role in your future funding endeavors.
The FICO SBSS score ranges anywhere from 0 to 300. The FICO SBSS score is likely calculated using information like:
- Your personal credit score
- Your business credit score
- Business assets
- Business liabilities
- Cash flow and revenue
- Business age
- Liens and judgments
- And similar factors
Unlike the consumer FICO credit score, the FICO SBSS score doesn’t have a breakdown that explains how much each portion is or what exactly they look for. This scoring system is proprietary.
What we do know is that the FICO SBSS score can play a prominent role in funding. The Small Business Administration (SBA) and thousands of other traditional banks will ask for this score.
Your FICO SBSS score can be boosted by engaging in positive payment behavior. Always pay on time (or earlier), avoid delinquencies and legal issues, and focus on scaling your business effectively.
Starting out with a business credit builder will help you get started and maintain momentum.
Where Does Business Credit Information Come From?
We know what credit bureaus are looking for when they put together your credit report. But where does business credit information actually come from?
There are a host of sources that may be used to determine your creditworthiness. Business data can be collected from:
- Trade vendors who report your vendor tradeline to major business credit bureaus
- Traditional lenders like banks, who will (often) report when you apply for credit solutions like a business credit card, business loan, or another source of funding
- Public records like judgments and liens
- Other public resources, like the internet. One can easily find your business name, financial data, and more. Data may come from business directories, press releases, and similar sources
- Government agencies
- Data collectors
- Self-reported information, such as when you report payments to credit bureaus yourself
How to Get Business Credit Reports
Business credit reports can typically be purchased from business credit bureaus. Here’s the breakdown of what you need to do to obtain your business credit reports from each:
- Dun & Bradstreet: It’s important to note that D&B technically offers a free credit check and a free business tier for their Credit Insights. However, it’s quite limited. You won’t be able to see your credit profile in detail or for very long. To get a full view of their score, you’ll need to sign up for the Basic Tier. This will cost you around $49 a month or $499 a year. Plus offers more features at a higher price.
- Equifax Business: Equifax Business is extremely tight-lipped about how to get a report. There are no purchase details on their website. Instead, you’ll most likely have to contact a sales associate and express interest to get your copy.
- Experian Business: You can either purchase a one-time copy for around $49.95 to $59.95 (basic report vs. ProfilePlus). You can also buy a subscription to Business Credit Advantage or Business CreditScore Pro. These cost $199 a year or $1,995 a year, respectively.
- Creditsafe: Creditsafe doesn’t feature a pricing page. In fact, whether you learn more about business credit or go to their pricing page, you’ll be encouraged to check your free business credit score and report instead. You’ll have to sign up to get started and learn more.
- LexisNexis Risk Solutions: LexisNexis is another business credit agency that is not very transparent about what’s needed to acquire a business credit report. As with Equifax, it’s best to reach out to them to learn more.
How Long Does Information Stay on Your Business Credit Report?
This is a tough question to answer. Because policies can vary greatly across each business credit bureau, you’re not going to get a definite answer that is true across the board in regards to how long credit information stays on your report.
For example, with Dun & Bradstreet, you might expect trade credit to impact your PAYDEX score for around 24 months. Meanwhile, suits and judgments might remain for a decade or longer.
Equifax seems to follow similar practices in regards to trade credit. However, judgments and liens may only be reported for up to seven years. Collection accounts appear in your credit history for five years.
Experian is the most detailed when discussing commercial credit history. You know exactly how long each item will affect your credit score. Their business credit history report breakdown includes the following:
- Trade Data: 36 months
- Bankruptcies: 9 years and 9 months
- Judgments: 6 years and 9 months
- Tax Liens: 6 years and 9 months
- Uniform Commercial Code Filings: 5 years
- Collections: 6 years and 9 months
- Bank, Government, and Leasing Data: 36 months
Build Business Credit Quickly With Credit Suite
Navigating business credit can be challenging for small business owners. You need to not only be able to understand all the complex factors involved in business credit scores but also be able to find the right credit solutions.
Working with Credit Suite can help you build business credit rapidly and with less difficulty.
Our Fundability System helps you by:
- Providing you with insights into your current credit health
- Offering you step-by-step support to build business credit fast
- Allowing you to access better credit solutions and higher credit limits
- Matching you with lenders, vendors, and creditors from our extensive database so you can apply for opportunities that best fit your small business
- Supporting you with one-on-one support
- Helping you scale more effectively
Are you ready to begin your business credit-building journey effectively? Get started with the Credit Suite Fundability System today!
