Learn to Read Your Equifax Business Credit Report

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Learn to Read Your Equifax Business Credit Report

Published By Janet Gershen-Siegel at June 6, 2018

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Taking the Mystery out of Your Equifax Business Credit Report

By Janet Gershen-Siegel

Your Equifax business credit report can stand between your business and funding. We take the mystery out and show how Equifax puts it all together.

A Equifax business credit report is broken down into sections.

Company Identifying Information

The very first part (immediately under the date) has identifying details on a company. This is items such as the business name, and its address and telephone number. However, it also has information on if a business is incorporated, and the date the business started.

This part will also feature the number of employees and your business’s annual sales. This element will also display if there are any alerts.

These first sections function as a summary of the balance of the report.

Scores

The next portion includes two scores:

  1. Your small business credit risk score for suppliers and
  2. Your business failure risk score.

Public Records

Next off, the report shows public records. These involve bankruptcies, judgments, and liens, and display the amounts (if any). It also includes the date(s) the most recent one(s) was/were filed. This area also demonstrates how these matters were satisfied, e.g. if the lien was repaid.

Credit Usage

The next part is a pie chart showing your business’s credit usage. It graphically shows how much of your available credit line you using. This is your credit utilization rate.

Credit Report Summary

In the summary sector, the report has the number of your business’s credit accounts. It also shows the date these credit accounts became active. And it adds any amounts past due, your most severe status within the last 24 calendar months. This is how slowly you have paid off your debts. It also has the single greatest amount of credit extended, the median balance, and the average open balance.

All of these aspects split into financial and nonfinancial categories. It also lists your company’s recent activity. This includes things such as number of new accounts opened or delinquent accounts. It also has the number of inquiries and number of updated accounts.

Line Graph

This section also includes a line graph. It shows a trend line showing your company’s average days beyond terms by date reported. This is for your nonfinancial accounts only. The report will point out the recent trend, and how many days (if any) your company is behind terms. This section also shows your business’s payment index and compares it to your business’s industry.

Financial Account Highlights and Details for the Most Recent 36 months

This next section starts with highlights and then goes into detail. It brings in basic information on financial accounts. This includes details such as commercial credit cards and leases, showing status; open and closed dates; original and current credit limits; balance; unpaid amount (if any); and your company’s 24-month history.

The details subsection expands on the highlights section. It adds information such as the payment amount and frequency, and if a debt is secured. Secured vs. unsecured credit matters a good deal in case of a bankruptcy. This is because secured creditors get a favorable place in line for limited asset.

Financial Account Payment Details

This next part shows balances, past due amounts, aging categories, and dates of first delinquency (if any). These are for the most recent 12 month period.

Non-Financial Payment Credit Experiences and Status

The following segment shows trade accounts and so forth, as well as includes balances, aging categories, and a 24-month history.

Public Records

Next up are public records. This section shows more in-depth details on judgments, liens, and bankruptcies.

Decisioning Details

The next piece shows the particulars of what entered into your business failure risk summary report.

Additional information

The final component of the report shows any DBA information and any related files. It also show any other miscellaneous details which could be in a report. This includes comments.

Improving Your Equifax Business Credit Report

Now you know what goes into it, you can see what matters to Equifax. These are items such as public records, credit usage, and how you deal with your financial and nonfinancial accounts.

You can improve your Equifax business credit report. Also, clear debts as fast as possible. Don’t go delinquent. Keep credit utilization within reason. As less than 30% of your overall available credit is best. Also, avoid overdue payments.

Do these, and you should be able to get a better Equifax score. Discover this new way to monitor your business credit scores.

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