Business Credit Reporting

Of the big three, D&B is the only credit bureau that focuses exclusively on business credit. They report primarily on how a business interacts with vendors and other suppliers, which is why potential suppliers often look at your D&B reports before they offer your business trade credit. In addition to business-to-business data submitted by suppliers, D&B also looks at public records, industry data and other historical data in your D&B profile to compile their credit scores, of which the PAYDEX Score is the best-known.

business credit reporting

Equifax transforms data collected by the Small Business Finance Exchange (SBFE) into a report. The SBFE is an association of U.S. small business lenders who report payment data on their small business customers. Because this data directly reflects how small businesses interact with lenders, banks use it to evaluate your creditworthiness.

Because Experian collects both trade data and bank data, their business credit report could be considered the most balanced of the big three. Whether you rely primarily on trade credit for capital, access capital from a bank, or do both, Experian will have data on your business.

What if you find a mistake on your business credit report? Because each credit reporting agency wants to maintain accurate data, D&B, Equifax and Experian all have dispute resolution processes you can use to request corrections or updates to your business information. Only the business owner or a registered corporate officer can make these requests.

Your business credit file is created by business credit reporting agencies. These agencies are storehouses of collected business and credit information on millions of companies in the United States and throughout the world. The most widely recognized agencies are Dun & Bradstreet and Equifax Small Business.

The first step prior to opening a credit file is establishing your business entity. Next, you will need to obtain an employer identification number also known as your EIN or federal tax identification number. Now that these two fundamental steps are completed the third step is to open a business credit file with each of the major agencies.

If your company is listed in the search results then order a business credit report so you can review the information being reported on your company. Check for any inaccuracies. and if If there is any incorrect information contact the credit agency directly. Another option is to submit a dispute and/or update online.

If a supplier or lender does not report, you can encourage them to report by becoming a trade reporter with an agency. Keep in mind not all suppliers report to business credit reporting agencies. In fact, of the more than 500, 000 suppliers extending credit, only about 10, 000 reports to a business credit agency.

Your business credit score is essential to the financial health of your business. It impacts your business in numerous ways, such as the amount of credit suppliers will extend you and the interest rates you'll pay. Check your Experian business credit report to stay in control of your business credit.

It uses this data to assign different scores, like a business credit risk score, which ranges from 101 to 992. It predicts the likelihood a business will become 90 or more days delinquent over the upcoming 12 months. Equifax also generates a business failure score, which ranges from 1,000 to 1,610 and predicts the likelihood of a business going bankrupt within the next 12 months. A lower score indicates higher risk.

Based on the information in this database, Experian assigns a business credit score using the Intelliscore Plus model. Scores range from 0 to 100, with higher scores representing a lower (better) risk.

Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.

The Federal Trade Commission has launched an inquiry into the small business credit reporting industry, ordering five firms in that industry to provide the Commission with detailed information about their products and processes. The orders will be issued to Dun & Bradstreet, Experian Information Solutions, Equifax, Ansonia Credit Data, and Creditsafe USA.

Unlike credit reports for individual consumers, which are governed by the Fair Credit Reporting Act, there is no federal law that specifically outlines processes and protections available to small businesses when it comes to credit reporting. This can make business credit reporting hard to understand, and it can be particularly difficult for small businesses to navigate how to correct errors or omissions in their credit reports in a timely fashion.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

For more than 36 years, TransCredit has been one of the primary business credit reporting agencies for the transportation industry and beyond. Our scores ride on more than 135 million loads a year in the United States and Canada, serving more than 57,000 satisfied customers.

NACM understands that business credit reports are the keystones that help credit professionals make sound credit decisions. NACM Affiliates can provide credit professionals with the most complete, objective and accurate reports available.

Business Credit Reports A comprehensive business credit report can provide detailed information about a business, which may include a summary of company ownership, extensive trade payment information, commercial banking relationships, public record information and federal government information.

Scoring Reports For high-volume, quick-turnaround account transactions, scoring reports may help streamline credit decisions. These easy-to-read, one page reports summarize a business credit report, including background information, trade payment and public record data. This report is particularly objective in its rating system by providing analysis based on specific criteria consistently.

Small Business Reports Research shows that reports combining business and owner credit scores are more predictive than business or consumer-only scoring models. Many Affiliates offer a summary of information on both the business and the business owner(s) so that better credit decisions can be made.

The B&O tax rate varies by classification. Once you know which classification your business fits into you can find the rate that corresponds to your classification on our list of B&O tax rates. If you're not sure of your classification, see our tax classifications for common business activities page or our list of tax classification definitions.

Credits are amounts that have been paid to the Department of Revenue and are not due or are granted by the Legislature for a specific purpose. Credits are subtracted from the B&O tax due on your excise tax return. Credit definitions provide detailed instructions for reporting credits on the tax return.

Section 1002.9(a)(3) governs adverse action notice requirements for business credit applicants. The rule distinguishes between business credit applicants that have gross revenues of $1 million or less in the preceding fiscal year and those that have gross revenues greater than $1 million.

If a business credit applicant has gross revenues of $1 million or less, then section 1002.9(a)(3)(i) requires credit unions to comply with the requirements set forth in sections 1002.9(a)(1) and (2). For a business credit applicant with gross revenues of $1 million or less, Regulation B requires complying with the timing requirements in section 1002.9(a)(1), including notifying an applicant of action taken within 30 days after receipt of a completed application, but oral notice when adverse action is taken will suffice. This provides a credit union with greater flexibility because business credit applicants with gross revenues of $1 million or less can be provided with oral notice of the action taken unlike consumer credit applicants who need to receive written notice of the action taken under section 1002.9(a)(2).

Regulation B also gives credit unions more flexibility regarding the statement of specific reasons requirement. In lieu of providing a written statement of specific reasons as required by section 1002.9(a)(2)(i), a credit union may disclose the business credit applicant's right to a statement of reasons on the application if the disclosure contains the information required by section 1002.9(a)(2)(ii) (i.e., right to receive statement of specific reasons, timing requirements, contact information to use in obtaining the statement of reasons, right to have statement of reasons confirmed in writing if provided orally) and section 1002.9(b)(1) (i.e., the ECOA notice).

A trustworthy practice to mitigate risks is to perform a credit report check-up from reputable business credit report providers. It is doubly useful for you in case you have multiple suppliers, clients, and other important stakeholders, as credit report providers oftentimes offer you the possibility to monitor a series of companies at the same time. The information provided helps you see not only the credit score itself but also what is bettering and what is hindering it.

A system that would assess and monitor the creditworthiness of your business partners thus proves to be crucial, especially concerning the most susceptible ones to financial fluctuations and trade breakdowns. Not only do you have to guarantee your company will be able to avoid any financial and/or legal issues, but also make sure that you save the time and resources you would otherwise spend chasing late payments.

The due diligence of your suppliers is just as important, because if you fail to understand which of your suppliers is striving to survive or to honour their part of the deal, you may end up with shortages, and hence risk throwing your clients under the bus. Not only would you have to find a new source of materials or services to keep your activities running, in case one of your providers is out of business. You would also need a source that would have the capacity to deliver at least the same quality immediately. 041b061a72