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Extraordinary! Business Credit Reports Made Easy

January 16, 2018
Business Credit Reports Made Easy Credit Suite

We’ve Got Business Credit Reports Made Easy

Your best bet as a business owner is to stay on top of your credit reports. So these come from PAYDEX, Equifax, and Experian. These are business credit reports made easy.

There are three big credit reporting bureaus for small business and you absolutely need to check all of them often. This is because they use slightly different benchmarks. Therefore moving the needle for one can move the needle for the two others. But it’s possibly not as much.

Do not let your small business credit scores slide, as you need to pounce on any mistakes as fast as you can. And, you need to detect anything which is dragging your scores downward. And then take corrective action.

You can get your reports conveniently and stay right on top of all three scores by following a few straightforward steps.

Business Credit Reports Made Easy: Understanding Your Scores

Biz Reports Made Easy Credit SuiteDoes your business have an awesome business credit score? Or it is any good at all?

So you are currently in business, and you are striving to keep on top of your company credit scores.

Or possibly you aren’t, and have decided now is a good time to start. Or perhaps your company is somewhat new, and this is the first time you’re doing this.

Whatever your conditions, you’ve probably asked this question at least once. Are my credit ratings any good?

Let’s check out the three company credit reporting bureaus. And we’ll solve this mystery at last. This is business credit reports made easy.

Business Credit Reports Made Easy: D&B (PAYDEX)

Dun & Bradstreet’s PAYDEX score of your company can wind up as one of the principal reasons that your business acquires credit in any manner. D & B furnishes Credit Signal, which is a means to keep track of your credit score by having the reports come directly to you, for a price.

You may discover the cost is well worth it in order to avoid the inconveniences that can originate from letting this score slip. And you will not have to produce and stay on top of the scheduling and reminders you might need to keep track of if you do not make use of it.


Alternatives to Credit Signal

Don’t want to use Credit Signal? No problem, as you can receive your PAYDEX report by way of D & B and, if need be, you can consult with their Customer Service department (this department exists as a section of Dun & Bradstreet itself).

On top of that, in order to review your PAYDEX report, check out what D & B provides, which is a specimen report and even some higher level guidance in how you can interpret it.

Your Small Business’s PAYDEX Score

Dun & Bradstreet’s PAYDEX score ranges from 0 to 100. A PAYDEX score has a basis in payment details which is on report to the agency. Or it is on report to data-gathering companies partnering with the bureau.

D & B uses this information, as well as a credit score and financial stress score, to advise how much credit a lender should extend to your small business.

Getting a PAYDEX Score

So as to get a PAYDEX number, you must file for a DUNS number by using Dun & Bradstreet’s site. The number is free of charge. In addition the bureau needs to have records of your payments with four or more vendors.

Your business’s PAYDEX score reveals if your payments are normally made in a timely manner or ahead of schedule. As you might expect, a greater number is better.

PAYDEX Score Details

The scores work out as follows:

  • 80-100: A low risk of late payments
  • 50-79: A medium risk of late payments
  • 49: A high risk of late payments

Business Credit Score

Your small business’s credit rating ranges from 1 to 5. 1 is the best score. This matches your small business with other small businesses with comparable payment histories. The score demonstrates how frequently those small businesses tend to pay timely.

This information can help lenders to comprehend your small business’s standing.

But it does not genuinely show all of the payment information from your company.

Financial Stress Score

The financial stress score also ranges from 1 to 5. This score matches your company with other businesses sharing similar financial and business attributes.

These similarities are in areas like size or amount of time in business. This score demonstrates how frequently those small businesses tend to pay on time. As before, 1 is the best score. This rating is a broader investigation of the business landscape, rather than analysis of your small business’s actual payment history.

A good PAYDEX score for your small business is 80-100.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Business Credit Reports Made Easy: Equifax

Equifax, one of the large credit reporting agencies, offers a risk monitoring service which is more convenient as it allows for reports to come straight to you. If you don’t wish to purchase continual reports, you can as an alternative request your small business’s Equifax report.

Additionally, if you have to challenge your small business’s Equifax report, you can do so by abiding by the guidelines on their site.

You can learn how to check your Equifax report by looking into a sample of their reports.

Your Company’s Equifax Score

Equifax shows three distinct business determinations on its business credit reports. These are the Equifax payment index, your small business’s credit risk score, and its business failure score.

Equifax Payment Index

Similar to the PAYDEX score, Equifax’s payment index, which has its measurement on a scale of 100, demonstrates how many of your small business’s payments were made punctually. These include both records from credit issuers and vendors.

But it’s not meant to forecast future conduct. That is what the other two scores are for.

Equifax Credit Risk Score

Equifax’s credit risk score checks how likely it is your small business will become severely delinquent on payments. Scores run from 101 to 992, and they assess:

  • Available credit limit on revolving credit accounts, e. g. credit cards
  • Your company size
  • Proof of any non-financial transactions (e. g. vendor invoices) which are delinquent or were on charge off for two or more billing cycles
  • Amount of time since the opening of the earliest financial account

Equifax Business Failure Score

And lastly, Equifax’s business failure score takes a look at the risk of your business shutting down. It runs from 1,000 to 1,600, appraising these aspects:

  • Total balance to total current credit limit average utilization in the last three months
  • The length of time since the opening of the oldest financial account
  • Your company’s worst payment status on all trades in the previous 24 months.
  • Proof of any non-financial transactions (e. g. merchant invoices) which are delinquent or have been on charge off for two or more billing cycles.

Equifax Scoring Analysis

For the credit risk and the business failure scores, a rating of 0 means bankruptcy.

So an epic Equifax score for your small business is as follows:

  • Payment Index 0-10
  • Credit Risk score 892-992
  • Business Failure score 1400-1600
Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Business Credit Reports Made Easy: Experian

Experian, another big credit reporting firm, also offers a way for getting reports sent to you for a cost. For this reason you can keep track of your Experian small business credit score here and the setup is effortless.

Having said that, if you prefer to not get regular reports (and purchase them), then you can order a separate Experian report for your small business on their website.

In addition, if there are any troubles or matters of contention, you can contest any problems on your company’s Experian report if you follow the instructions on their website. Learn more about checking your Experian report by reviewing an example Experian business credit report.

Your Small Business’s Experian Business Credit Score

Experian’s Credit Score report includes things like a company credit score plus other information, including account histories, payment trends, and public records. Experian company credit scores range from 1 to 100.

Unlike Dun & Bradstreet’s PAYDEX score and Equifax’s payment index, Experian takes into consideration numerous factors, and not merely payment histories.

Experian Scoring Factors

The factors which go into the calculation include:

  • Lines of credit your small business has an application for in the previous nine months
  • New lines of credit you’ve begun in the prior six months
  • Your business’s years in business
  • Payment history in the past twelve months

More Experian Scoring Factors

  • Lines of credit in use in the last six months
  • Collections amounts within the previous seven years
  • Percentage of available credit in use
  • Amount of payments one – 30 days late, or 31 days or more overdue
  • Number of non-net-30 lines of credit (that means the payment is due in fewer or greater than 30 days).

Generally, even businesses which use credit sensibly will get a medium-low risk rating. So as you might expect, older small businesses will have an easier time attaining a low-risk rating.

A good Experian score for your company is 76-100.

Discover our Get Business Credit guide, with everything you need to know about building credit for your business.

Business Credit Reports Made Easy: Takeaways

Often, it is a good idea to hand over a few bucks to make sure you receive your company credit reports on a regular basis. And it’s a lot easier than to have to remember to do this. And you’ll probably examine these reports more closely, as they come with a price tag.

So continue to track and make use of the tools that these credit reporting companies supply, and make your life less complex. Because it’s obvious; you’ve already got enough on your plate.

Because of the recent data breach, there are all the more reasons to examine your business and consumer credit reports. And be vigilant about any errors you spot. Discover this new way to understand business credit scores and get business credit reports made easy.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the Head Finance Writer and Content Manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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