BUSINESS CREDIT REPORTING AGENCIES: Top Picks In 2023

Business credit reporting agencies
Business Credit

Business credit bureaus, also known as business credit reporting agencies, are the most prominent credit agencies compiling data from various sources to construct business credit reports. The three major business credit reporting companies are Dun & Bradstreet, Experian, and Equifax. Banks and other lending institutions consult these reports before extending credit to a potential customer.

Business Credit Reporting Agencies

Organizations specializing in business credit reports collect and evaluate data on businesses to help the public form an opinion about the latter’s financial health and dependability. Dun & Bradstreet, Experian, and Equifax are the three most popular business credit reporting agencies, but many others exist. Different industries and groups have different needs from the smaller credit reporting organizations now in operation.

There are three main business credit bureaus, along with a few others. Additionally, the agencies receive information from business credit reporting organizations about liens, judgments, and bankruptcies involving businesses. They get their information from publicly accessible records. You know that there is a significant range in the accuracy of the information used to assess a company’s financial stability. You should review the credit report for your company at least once a year.

What is a Credit Report?

Checking your credit history with reputable sources of business credit reports is a reliable strategy to reduce hazards. Credit report services often allow you to monitor many different firms simultaneously if you have many suppliers, clients, or other significant stakeholders. You can check your credit score using the information given to discover what boosts and detracts from it.

What is a Credit Score?

Business reports frequently include a financial analysis describing a company’s potential and profitability. These also call attention to relevant facts that might help make decisions more informed. Providers of business credit reports use specialized weighting frameworks and statistical techniques to examine in-depth financial data, company size, industry characteristics, regional specifics, corporate structure, county court judgments, mortgages, or other relevant company intelligence. Companies that offer credit reports recommend credit limits and a worldwide risk score. A credit score is what this is called.

Why are Business Credit Bureaus Important?

A business credit agency compiles your company’s credit reports. Along with your company, other businesses depend on them.

  • Your small business credit report significantly impacts your business credit score. If your credit score is good or higher, it will be easier for you to obtain loans or extended credit for purchases.
  • When you make it a routine to check your business credit reports, you may be able to take action to address problems that are hurting your credit scores. This could not be true.
  • Other businesses, like suppliers and vendors, may check your small business credit reports. If you have a strong credit history, it is more likely that suppliers and vendors will do business with you.
  • You can find out who looked at your credit reports for small businesses (which companies).

Where Can I Find Information About Business Credit?

The following details may be in your company’s credit file:

  • Public Records
  • Lenders
  • Vendors
  • Suppliers
  • Public assistance
  • Agencies that collect property taxes
  • The state’s taxing bodies
  • Court records relating to decisions
  • Court records about bankruptcies

Small Business Credit Reporting Agencies

The three main business credit reporting agencies are Dun & Bradstreet, Equifax, and Experian. Information from lenders, suppliers, and sellers is included in each of these company credit bureaus. All commercial credit reporting agencies utilize the Small Business Finance Exchange (SBFE) report.

Here are some additional details regarding credit reporting companies and bureaus that cater to small businesses:

#1. Dun & Bradstreet 

There is no substitute for the Dun & Bradstreet credit scores for businesses. When assessing a company’s financial stability, Dun & Bradstreet looks at various factors, including information from vendors and suppliers and other business-to-business data. Potential partners, lenders, and other businesses check Dun & Bradstreet credit reports. Paydex is a rating system that ranks credit reports from Dun & Bradstreet. Information such as trade payment histories, business loan balances, loan repayment patterns, and payment methods are used to calculate the Paydex score.

#2. Equifax.

With its Equifax business credit reports, Equifax is another reliable business credit reporting agency. Equifax business credit ratings are based on information from a wide variety of sources, including lender reports, credit histories, and bankruptcy, foreclosure, and judgment records for small businesses. One of the three major commercial credit bureaus, Equifax, has a solid reputation.

#3. Experian

Information from financial institutions and commercial transactions goes into the Experian business credit score. The organization has a clientele of over 40 million enterprises and 300 million suppliers and lenders in the United States alone. Experian’s Intelliscore Plus rating is a useful tool when building a company’s credit history.

#4.TransUnion

Similarly to Experian, TransUnion compiles credit histories for businesses. TransUnion gathers information from both private and public records to create a complete picture of a consumer’s credit history. When the data is combined, the business may generate commercial credit reports and give each client a score indicating the danger level they provide to the company’s finances.

#5.  FICO SBSS Score

Personal credit scores are only offered by one company, the FICO Small Business Scoring Service. Thus, a potential investor or supplier can examine the owner’s credit records alongside the company’s financial responsibilities and credit standing. The FICO SBSS Score ranges from one to three hundred. The SBA and many other lenders require this grade to process loan applications.

Top Business Credit Reporting Agencies

Now that we have established that let’s look at which firms currently rank among the best business credit reporting agencies throughout the globe. 

#1. Global Database

The Global Database is a comprehensive service and product catalog for business intelligence. Although they initially gained notoriety for their sales and marketing information, they have since rebranded themselves as a unified platform that can meet the needs of a wide variety of business units (such as analytics, compliance, sales, marketing, financial, and others) with just one license, making them a truly global company database.

The Business Credit Reporting agencies from Global Database include credit ratings, credit limits, payment histories, mortgage lists, key performance indicators, ratios, county court decisions, and more for over 400 million businesses in 190+ countries. Corporation information in the United States also includes Uniform Commercial Code (lien) information, bankruptcy filings, and payment records.

#2. Equifax

Equifax operates as a multinational provider of information services specializing in data analytics and information technology. Like Experian and many other companies, Equifax offers credit reports to its consumers. The latter prioritizes providing comprehensive service to customers so they can make educated commercial judgments. Equifax takes great pleasure in its unparalleled dedication to the vital small business segment.

Key firmographics, alternate business names, public records, credit summary, 12-month and industry-based payment index, business credit risk score, Equifax Business Credit Risk ScoreTM, Equifax Business Failure ScoreTM, business and credit grantor comments, corporate relationships trees, guarantors, and other stakeholders associated with the company may be provided.

#3. Dun & Bradstreet

To help their customers determine whether or not to do business with a particular firm, D&B (further D&B) offers complete business credit reports that include, among other things, analytics and detailed corporate data. D&B, one of the business credit reporting agencies, gives a variety of credit scores, ratings, and other information based on previous performance and future projections, in addition to trade payment history and operational knowledge.

For instance, based on the organization’s current and projected financial health, the D&B Viability Rating calculates the likelihood that a company will soon go bankrupt, suspend operations, or cease operations altogether. The D&B Failure Score indicates the likelihood that a company will fail to pay its debts as they come due, file for bankruptcy, initiate a reorganization, or face similar events or procedures that can be used to estimate credit risk.

#4. Coface

Coface is a dynamic trade insurance group that is well-known for its credit insurance, risk management, and analysis of the world economy. They provide products and services designed to protect businesses, guide them toward more profitable credit decisions, and increase their earnings potential in domestic and foreign markets.

Coface’s business credit reports include management details, critical financials, payment histories, a Coface Credit Assessment (displaying a number that reflects the likelihood of default by the analyzed company within 12 months from the day it was calculated), and credit recommendations. Coface’s data features 145 million enterprises in the Americas, Europe, and Asia.

#5. Experian

Experian is one of individuals and corporations’ most prominent names in the credit reporting industry. They collect credit information from businesses and consumers like the other bureaus on our top 5 list of business credit reporting providers. Experian, listed on the FTSE Index in the United Kingdom, provides customers with credit information in over a hundred countries.

Their primary objectives are to facilitate personal financial management and access to financial services for consumers, provide information to aid businesses in making data-driven decisions, reduce administrative burdens for lenders, and prevent criminal activity and financial fraud.

For the benefit of its customers, Experian offers continually updated information on business credit from a third party that has confirmed it for 99.9% of US businesses (27M+ organizations). Experian business credit scores (including the Intelliscore Plus and Financial Stability Risk assessment), incorporation documents, payment histories in credit transactions, company officers, and other publicly available information are all included.

What Credit Bureau Do Most Businesses Use?

Many companies produce corporate credit reports, but Dun & Bradstreet, Experian, and Equifax produce the biggest and most popular ratings.

Is there a Credit Bureau for businesses?

Equifax Small Business, Experian Business, and Dun & Bradstreet are three prominent business credit reporting services. However, additional corporate credit bureaus gather information and give ratings, which some financial institutions or companies may check before lending money or doing business with you.

What Credit Bureau Does a Business Credit Card Use?

The “big three” business credit bureaus that produce business credit reports are Dun & Bradstreet, Experian, and Equifax.

How Much Does a Business Credit Report Cost?

For as little as $39.95, you can view your business’ credit report, but for $189 annually, you can monitor both your business’s credit reports and score.

Do Business Credit Cards Report to Dun and Bradstreet?

Some do, while others don’t. Only around 7% of corporate accounts report a good payment history, compared to all personal credit accounts that report to the consumer credit bureaus.

Conclusion 

The ability to obtain funding is crucial to the success of any firm. A company’s cash flow, payment schedule flexibility, and ability to plan are all negatively impacted if it does business with companies that cannot meet its business credit standards. Moreover, if your credit is poor, you may not be able to get business loans or other forms of finance when you need them.

Managing businesses’ credit risk is essential for banks to make sound lending decisions and guarantee stable cash flow. While it’s hard to eliminate danger in business, there are steps you can take to lessen your exposure. The usefulness of business intelligence, financial data, and risk management tools grows in several contexts, including when they are used to spot unreliable suppliers, spot immediate and future hazards, save time and money on research and pursue late payments. The final decision is always yours to make!

References 

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