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How to Perform Business Credit Checks – Conquer Credit and Slay the Funding Beast Once and For All

Janet Gershen-Siegel
January 3, 2018
Perform Business Credit Checks Credit Suite

How to Perform Business Credit Checks and Help Your Business Today and Tomorrow

biz credit checking Credit SuiteDo you know how to perform business credit checks? We show you how to pull and check your business credit reports.

Your best bet as a small business owner is to remain on top of your small business credit reports. So these are from PAYDEX, Equifax, and Experian.


There are three big credit reporting bureaus for businesses. And you really need to evaluate all three of them frequently. This is because they use slightly different measurements.

Hence moving the needle for one can move the needle for both of the others. But it’s possibly not as much. Do not permit your company credit scores slide.

This is because you should catch any mistakes as fast as you can. And identify anything which is dragging your scores downward. And after that you need to take corrective measures.

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

Check Your Own Business Credit to Improve It

Does your company have a terrific business credit score? Or it is any good at all?

So you are presently in business, and you are working hard to keep on top of your company credit scores. Or perhaps you aren’t, and have determined now is a good time to start.

Or maybe your small business is fairly new, and this is the very first time you’re doing this. Despite your situation, you have probably asked this question at least once. Are my scores any good?

Let’s check out all the three commercial credit reporting bureaus.

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

How to Perform Business Credit Checks at: Dun & Bradstreet (PAYDEX)

Dun & Bradstreet’s PAYDEX score of your company can end up as one of the fundamental reasons why your company receives credit at all.

D & B provides Credit Signal. So it is a way to keep track of your credit score. This is by having the reports come straight to you, for a price. You may find the price is well worth it to avoid the bothers that can come from letting this score slip.

And you would not have to produce and take care of the scheduling and reminders you might need to keep track of if you do not make use of it.

Tracking without Credit Signal

Don’t want to make use of Credit Signal? Don’t worry, as you can get your PAYDEX report through D & B. And, if needed, you can connect with their Customer Service department. So this department exists as a part of Dun & Bradstreet itself.

In addition, in order to review your PAYDEX report, check out what D & B provides. So this is a specimen report as well as some higher level guidance in how you can decipher it.


Your Business’s PAYDEX Score

Dun & Bradstreet’s PAYDEX score runs from 0 to 100. A PAYDEX score has a basis in payment records on report to the CRA. Or it is on report to data-gathering firms partnering with the credit reporting agency.

D & B uses this information, in addition to a credit score and financial stress score, in order to recommend the amount of credit a credit issuer ought to extend to your company.

Getting a PAYDEX Score

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

Your business’s PAYDEX score reveals if your payments are typically made on time or ahead of schedule. As you may expect, a higher number is better.

PAYDEX Score Details

The scores break down 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 company’s credit rating runs from 1 to 5. 1 is the best score. This matches your small business with other companies with similar payment histories. The score reveals how often those small businesses tend to pay in a timely manner.

This data can help lenders to grasp your company’s standing.

But it does not really reflect all of the payment data from your small business.

Financial Stress Score

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

These similarities are in areas such as size or amount of time in business. This score shows how frequently those businesses tend to pay on time. As before, 1 is the best score.

This rating is a broader evaluation of the business landscape, rather than analysis of your company’s authentic payment history.

A good PAYDEX score for your company is 80-100.

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

How to Perform Business Credit Checks at: Equifax

Equifax, one of the big credit reporting firms, supplies a risk monitoring service. So it is more convenient as it enables reports to go directly to you. If you don’t wish to shell out money for continual reports, you can instead order your company’s Equifax report.

In addition, if you want to contest your small business’s Equifax report, you can do so by abiding by the information on their website. You can learn how to evaluate your Equifax report by having a look at a sample of their reports.

Your Company’s Equifax Score

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

Equifax Payment Index

Much like the PAYDEX score, Equifax’s payment index, which has its gauge on a scale of 100, demonstrates how many of your company’s payments were made in time. These include both information from credit issuers and vendors.

But it’s not meant to predict future behavior. 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 range from 101 to 992, and they assess:

  • Available credit limit on revolving credit accounts, e. g. credit cards
  • Your business size
  • Evidence of any non-financial transactions (e. g. merchant 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

Finally, Equifax’s business failure score takes a look at the likelihood of your company closing. It runs from 1,000 to 1,600, judging these factors:

  • Total balance to total current credit limit average utilization in the previous three months
  • How much time since the opening of the earliest financial account
  • Your company’s worst payment status on all trades in the previous 24 months.
  • Proof of any non-financial transactions (e. g. vendor 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 score of 0 means bankruptcy.

An epic Equifax score for your company is as follows:

  • Payment Index 0-10
  • Credit Risk score 892-992
  • Business Failure score 1400-1600

How to Perform Business Credit Checks at: Experian

Experian, another big credit reporting bureau, also provides a way for getting reports sent to you for a charge. As a result you can follow your Experian small business credit score. And the setup is easy.

But if you prefer to not get ongoing reports (and pay for them), then you can order a single Experian report for your business. Do this on their site. Additionally, if there are any concerns or errors, you can challenge any mistakes on your small business’s Experian report.

Do so if you follow the directions on their website.

Learn more about examining your Experian report by assessing a sampling Experian small business credit report.

Your Business’s Experian Company Credit Score

Experian’s Credit Score report includes things like a small business credit score as well as additional data. So that includes account histories, payment trends, and public records. Experian commercial credit scores range from 1 to 100.

In contrast to Dun & Bradstreet’s PAYDEX score and Equifax’s payment index, Experian takes into account various factors, and not just payment histories.

Experian Scoring Factors

The aspects which go into the calculation include:

  • Lines of credit your business has an application for in the most recent nine months
  • New lines of credit you’ve begun in the last six months
  • Your company’s years in business
  • Payment history in the most recent twelve months

More Experian Scoring Factors

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

Often, even companies which use credit conscientiously will get a medium-low risk rating. As you might expect, older small businesses will have a less complex time acquiring a low-risk rating.

A good Experian score for your small business is 76-100.

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

Perform Business Credit Checks and Destroy Help Your Business Now and in the Future

In many instances, it pays to hand over a few bucks. This is to make certain you receive your small business credit reports routinely. It’s a lot less troublesome than have to always remember to do this. And you’ll probably evaluate these reports more carefully.

This is because they come at a cost.

Continue to target and make use of the resources all credit reporting agencies supply. And make your life easier. That’s because it’s the truth. You’ve already got enough on your plate.

Thanks to the recent data breach, there are even more reasons to peruse your personal and commercial credit reports. And be vigilant about any issues you catch. Learn more here and get started with how to perform business credit checks.

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