Published By Janet Gershen-Siegel at May 30, 2018
Written by Janet Gershen-Siegel
Do you need help decoding your Dun and Bradstreet business credit report? Not to worry: we can help you with your D&B credit report.
For businesses, one of the big credit reporting agencies is Dun & Bradstreet. Because their PAYDEX score of your company can be the reason why your business gets credit – or it doesn’t. You need to keep on top of your PAYDEX score, as with all of your other business credit scores. D & B provides a sample report and even some higher level guidance in how to interpret it. So we’ll go over the sections in turn.
As you might expect, the report starts off with basic identifying data such as company name and address, and the date of the report.
Here, D & B includes the company founding date and the number of employees. This section includes working capital, sales, and net worth.
The report contains two graphs:
The report defines the terms next to the graphs.
Here the report has two more graphs:
There are two more graphs in this section:
This graph splits up risk category into high, medium, and low.
This more complex graph shows the following:
This section has Standard Industrial Classification (SIC Codes) and North American Industry Classification System (NAICS Codes).
There are two graphs in this section:
This portion also includes the prior D & B rating and recent payment activity. It has details such as average high credit, highest credit, and total highest credit.
This is another complex section. Fortunately, a Dun & Bradstreet business credit report provides definitions next to the four graphs:
This part has narrative information about the company. Such as the name(s) of officer(s) and director(s), plus any affiliate information, if applicable.
In this part, the Dun and Bradstreet business credit report shows where the business incorporated. It also has the date of incorporation and the corporate registration ID.
This section is mainly about if the business might be considered for socioeconomic programs. Such as if it is minority-owned or is considered a small business.
The part contains basic company information. So this includes the business you are in, the net payment terms you have with creditors, number of employees, and the type of facilities you have. Also, it includes where the facilities are (e. g. within a business district or the like).
This section includes the SIC and NAICS codes for your company.
Your main branch is here. So if you only have one office, then it’s here.
If your company has any subsidiary offices, then they are here.
This section compares various data points for the past three years, such as current assets and liabilities.
Here, the report compares your company to its industry median and the industry quartile. This is when it comes to particular data points, such as short term solvency and assets sales.
This section contains detail on current assets, non-current assets, current liabilities, and non-current liabilities.
This section summarizes any judgments, liens, suits, and UCC filings your company has.
This section provides a bar chart based on the previous section.
Here are the details on any judgments against your company.
In here are the details for any liens against your company.
Here are the details on any UCC filings impacting your company.
Here is a graph from high to average to low for your company’s credit risk.
This part compares your company’s delinquent payment history to similar companies.
This section graphs your company’s credit score as opposed to similar companies.
This graph contains your company’s financial stress class from high to average, to low.
Then this section has the probability of failure of your business.
This section paints a picture of your company’s financial stress percentile versus similar companies.
There are two graphs in this part:
This graph splits your business’s risk category into high, moderate, or low.
This line graph encapsulates your company’s PAYDEX scores compared to the primary industry for the last four quarters.
Here the report shows your business’s percentage of payment within terms divided by various dollar ranges.
The section contains some detail on the payment experiences D & B has on file for your business. This shows how quickly your company paid off its debts, how much credit was extended, etc.
This section expands upon the prior one. It adds details such as report dates, paying records, and selling terms.
You will have to look at your own PAYDEX report. This is to get a handle on your company’s financial health. You can get your PAYDEX report here and you can contact their Customer Service department. It’s a part of Dun & Bradstreet, as they also generate PAYDEX reports: here. D & B’s PAYDEX Customer Service phone number is here.
So now that you understand what goes into it, the main areas that Dun & Bradstreet reports on are delinquencies amounts and time frames, amount of credit utilized, business history (e. g. time in business), and judgments and liens.
Keep your credit utilization within reason, because less than 30% of your total available credit is best. Also clear your debts as fast as possible. And avoid delinquency and late payments. Also get some time in business. Then you should be able to improve your D & B PAYDEX score over time. You can get better PAYDEX scores! Check out how this will help your company read a Dun and Bradstreet business credit report!