A good business credit report can be a valuable asset. Keep reading to learn more about how business credit reports work, who creates them, and the information included in these important but poorly understood reports. 

What Is a Business Credit Report? 

A business credit report is a summary containing a variety of important information about your company — especially how your business manages its financial obligations. 

The primary purpose of a business credit report is to serve as a risk assessment tool. However, you and your business aren’t the target audience for these reports. Other companies may use your business credit reports to protect their own financial interests. 

A lender, vendor, financial institution, or credit card issuer (among others) may review your business credit report to assess the risk of providing financing or services to your company. In other words, the report helps them judge your company’s creditworthiness.

Whether a credit grantor opts to approve or deny your application often comes down to the details found in your business credit report. And loan eligibility isn’t the only decision on the line. Your report can also impact the interest rate and borrowing terms a lender offers you. 

Your business credit report might play a role when you apply for any of the following: 

• Business Loan
• Business Credit Card
• Trade Credit (AKA Vendor Credit)
• Business Insurance
• Etc.

Good business credit can open the door to opportunities. But bad business credit can hold your company back, and cost it more money.

The Major Business Credit Reporting Agencies

The job of a business credit reporting agency (also called a business credit bureau) is to gather information about your company. A credit bureau gathers details from your previous creditors and other sources and puts that data into a business credit file. 

From there, a business credit reporting agency can create a user-friendly report that others can purchase and use to evaluate your business.

In the personal credit world, there are three major credit bureaus— Experian, TransUnion, and Equifax. But the business credit bureau space is a bit more crowded. 

Here are five of the top business credit bureaus in the United States. 

1. Dun & Bradstreet

One of the primary business credit reports that business lenders use in the United States comes from a company called Dun & Bradstreet. The business credit reporting agency can trace its roots back to 1841— to the Mercantile Agency in New York City.

Today, D&B is perhaps best known for its PAYDEX Score. Along with business credit reports, business lenders use PAYDEX Scores to predict how likely a business is to pay its credit obligations on time.

PAYDEX Scores range from 1 to 100. A higher score can work in your favor as a business owner, increasing your approval odds and perhaps helping you to secure better borrowing terms as well. 

2. Equifax

Equifax isn’t just responsible for maintaining a version of your personal credit report and score. In addition to consumer credit reports, the credit bureau also creates and sells business credit reports and scores. 

Business lenders can review your Equifax business credit profile to gather more information about your company’s creditworthiness. Report users can purchase business credit scores from Equifax too, such as: 

• Business Delinquency Score
• Business Delinquency Financial Score
• Business Credit Risk Score
• Early Default Score
• And More

Different business scoring models have different numerical ranges. But all Equifax business credit scores have a key feature in common. Higher credit scores indicate that your business is a lower credit risk, and lower scores indicate the opposite. 

3. Experian

Experian is another credit reporting agency with a presence in both the consumer and business credit spaces. However, information from your Experian consumer report won’t cross over to your small business credit reports, nor vice versa.

The business credit bureau is also responsible for the development of Intelliscore Plus. Many commercial lenders rely on this popular business credit score to guide their credit decisions.

Intelliscore Plus ranges from 1 to 100. On-time payment history, low credit card utilization rates, and avoiding derogatory items (like collections, liens, or judgments) are strategies you can use to keep your Intelliscore in the best condition possible. 

4. PayNet

PayNet is a business credit bureau that focuses on financial tradelines. In 2019, Equifax acquired the company and now runs it as an independent division of the larger business credit bureau.

In addition to keeping tabs on your business credit history, PayNet also develops and sells business credit scores, including the PayNet MasterScore. 

Numerous commercial banks use the PayNet MasterScore in their credit decision processes. This business credit score ranges from 500 to 800. A higher score signals lower risk and should increase your chances of qualifying for business financing. 

5. Small Business Financial Exchange (SBFE)

The Small Business Financial Exchange, or SBFE, is a trade association that works as a business credit bureau with a few key differences. Like a commercial credit bureau, the SBFE collects and stores data about the credit management habits of business borrowers. 

However, unlike traditional business credit reporting agencies, access to the SBFE’s credit reports is limited. Only members of the trade association can use the service, and they must agree to share information about their customers in return. 

Membership in the SBFE is open to the following types of organizations:

• Financial Institutions
• Credit Card Issuers
• Alternative Lenders
• Leasing Companies

How Do I Get a Copy of My Business Credit Report? 

Getting copies of your business credit reports isn’t as easy as accessing consumer credit reports. Unfortunately, business owners aren’t guaranteed access to free business credit reports once every 12 months like you are with consumer credit reports. 

Despite the fact that there’s no federal mandate to provide free commercial credit reports, there are still ways to access your business credit information. 

• Credit Strong: When you open a Credit Strong Credit Builder Account, you can access a free monthly Equifax Business Delinquency Financial Score grade. These details can help you track your progress as you’re building business credit.
  
• Dun & Bradstreet: D&B’s CreditSignal provides you with free alerts when certain changes take place on your business credit profile.
  
• Experian: You can purchase various business credit reports or sign up for business credit monitoring with Experian. The cost for these products and services ranges between a one-time fee of $39.95 up to $1,495 per year.
  
• Equifax: Equifax gives you the opportunity to purchase a single business credit report for $99.95. You can also buy a business credit report bundle of five for $399.95. 

What Information Is Included In a Business Credit Report? 

Business Background Information

Business credit reports can vary depending on which credit reporting agency creates them. Yet most reports will contain details about your company’s background that could be relevant to lenders, suppliers, and others you might want to borrow from or work with in the future. 

Business background information may include: 

• Year Founded
• Parent Companies and Subsidiaries
• Names of Company Executives
• Number of Employees
• Headquarters Location
• States Where Your Business Operates
• Industry Type and Classification
• Etc.

Company Financial Information

Next on your business credit report typically comes your company financial details. This data helps business lenders measure your business’ financial health. It also can guide lenders as they determine the amount your company can afford to borrow and repay with interest.

Here are some details you might find in this section of your business credit report: 

• Revenue
• Annual Sales Figures
• Financial Statements (Balance Sheets, Income Statements, and Cash Flow)

According to D&B, solid financial details could work in your company’s favor. If you submit strong financial statements to a business credit bureau, it might have a positive impact on your business credit score. 

Credit Score and Risk Factors

A credit score is a tool that helps lenders evaluate credit risk in a more accurate and consistent manner. A business credit scoring model reviews the data contained in your business credit report and assigns a score based on that information. 

Different business credit scores predict the likelihood of different events happening. 

Below are some examples: 

• D&B PAYDEX Score: Predicts the likelihood of late payments.
  
• D&B Failure Score®: Predicts the likelihood of financial distress (like bankruptcy) within the next 12 months.
  
• D&B® Supplier Evaluation Risk (SER) Rating: Predicts the probability of a supplier shutting down or becoming inactive in the upcoming 12 months.
  
• Intelliscore PlusSM: Predicts the likelihood of severe delinquency in the next 12 months.
  
• Equifax Business Credit Risk Score™: Predicts the change of a business defaulting on an account (90 days late or worse) in the next 90 days. 

In addition to a credit score, your business credit report may also list a series of risk factors. Risk factors often appear alongside credit scores to provide additional insight. In other words, they can help explain why your credit score wasn’t higher. 

As a business owner, credit score risk factors can be very helpful. When you understand the reasons why your credit score isn’t as high as it could be, you can work to address those issues.

Banking, Trade, and Collection History

Most business credit reports feature information about tradelines your company has opened. Depending on the report, you might find accounts such as:

• Business Loans
• Vehicle and Equipment Loans
• Business Credit Cards
• Lines of Credit
• Supplier Accounts
• Collection Accounts
• Lease Agreements

Aside from the accounts themselves, your report will also include details about how you managed your credit obligations. 

Payment history tends to be the most important factor. But your balances, credit utilization ratios, and other details may also show up (and could influence your business credit score). 

Liens, Judgments, and Bankruptcies

When a lender or government agency places a judgment or lien against your business, those filings could show up on your business credit report. The same is true if your company files for bankruptcy protection from its creditors. 

Liens, judgments, and bankruptcies may make it difficult for your business to borrow money again— especially in the near future. However, these issues don’t have to mean that your business credit is doomed forever, either. 

You can work to resolve (aka pay or settle) outstanding debts and rebuild positive credit after a setback. Then, you might be able to put your company into a better credit position down the road. 

Uniform Commercial Code Filings

A Uniform Commercial Code Filing, also called a UCC filing or a UCC lien, is a type of financial statement. Lenders have the option to file UCC liens against your business with your secretary of state. 

When a UCC filing appears on your business credit report, it communicates that a lender already has the first claim to one or more of your business assets. 

For example, if you pledged a piece of equipment as collateral for a business loan, a UCC filing protects that lender’s ability to seize the asset if you fail to repay the debt as promised. Some UCC filings are blanket liens that include all of your company assets.

A UCC filing doesn’t mean your business has done something wrong. However, it could still cause problems when you apply to borrow more money since the new lender risks not being able to claim your assets in the event of a default. 

What Information Isn’t In a Business Credit Report?

Names of Creditors

Oddly enough, your business credit report may not contain the names of your creditors. Your report might indicate the type of account— auto rental, bankcard, equipment lease, etc.— but the name of the lender or creditor is often missing. 

Payment History Details

Unlike a personal credit report, your business report may not contain a full list of your payment history details. Instead, the report may show the percentage of monthly payments you made on time (100%, 98%, 90%, etc.). 

Nonetheless, your payment history is still the most important factor to most business credit scoring models. If you have a goal of building and leveraging good business credit, on-time payment history is a critical habit to develop. 

Credit Limits

The credit limits on your revolving accounts are also typically missing from business credit reports. But if you have business credit cards or lines of credit on your report, those tradelines may contain details about your recent high balance instead.

Sample Business Credit Report

Here is a sample business credit report that you can refer to.

3 Easy Ways to Establish Business Credit

As a business owner, putting in the effort to build a good business credit rating is a wise use of your time. Once you complete the initial work of putting your business on the map, you may be ready to open accounts that report to the business credit reporting agencies. 

Here are three strategies you may want to consider once you’re ready to apply for accounts with the potential to build your business credit profile. 

Use Credit Strong

A Credit Strong Business Credit Builder Account could be a great way to add a positive financial tradeline to your business credit reports. Once your business is at least three months old, you may be able to qualify for this secured installment loan. 

Credit Strong accounts report to the major business credit reporting agencies. And qualified applicants can receive tradelines up to $10,000. 

The funds from your credit builder account are held in a separate business savings account. From there, you can make payments up to 120 months, providing you the opportunity to build a long history of on-time payments on your business credit profile. 

Get Vendor Accounts

Vendor accounts represent another type of financing that your company might be able to open, even as a startup. Certain suppliers offer easy-approval net-30 accounts even for companies with no established credit history. 

Focus on finding vendors that report to the major business credit bureaus. Otherwise, a vendor account might improve your cash flow, but it won’t do anything to help you build your business credit. 

Get a Business Credit Card

Business credit cards represent another tool you can use to establish business credit for the first time. Again, you’ll want to confirm that the card issuer will report the account to the business credit bureaus in order for your new account to have credit-building potential. 

With a business credit card, the card issuer will most likely check your personal FICO® Score as part of your account application. If your personal credit is in good standing, you should have an easier time qualifying for a business credit card. 

However, if your goal is to build business credit without using personal credit, this method may not be the right choice for you. 

CreditStrong for Business is the only 0% interest business credit builder in the nation

Start Building