Business Credit Reporting

While extending a credit term by as little as 30 or 60 day is just like offering an unsecured loan it’s a credit risk most of us are willing to take. We’re simply providing goods or services in return for a promise to pay.

 But as many business owners have learned during these tough economic times, promises are easily broken.

However, by reporting your customer’s payment experience to a business credit bureau you can reduce customer late payments, defaults, and improve collections. In fact one of my clients who is set up with D&B’s trade exchange program experienced a 25% reduction on his past due accounts once his customers were notified that their payments were getting reported.

Here’s a list of benefits you can expect:

• Confidentiality – Your company name is not revealed to other clients in order to protect the privacy of your information.
• Timely payments – Customers who know you are reporting to the business credit bureaus are less likely to default on their debt
• Improve Collections – Leverage the powerful brands of the major business credit bureaus like Dun and Bradstreet,business Experian and business Equifax in your invoicing and collections activity.
• Contribute to your customer’s financial health – Reporting your customers’ payment experience can help ensure that your clients don’t assume more debt with other creditors than they can manage
• Reduce Credit Risk – Through data sharing your business will have the ability to make more informed credit decisions and receive additional solutions from the business credit bureaus to further mitigate risk and identify opportunities.

Here’s how to get set up with some of the major business credit reporting agencies so you can start business credit reporting.

D&B Trade Exchange Program

If your business has more than 300 active accounts or is a current DNBi customer you can qualify to participate in the D&B Trade Exchange Program. There is no fee or cost to participate and your customer data is secure at all times.

Small Business Financial Exchange (SBFE) 

The Small Business Financial Exchange is a non-profit association consisting of national and regional financial institutions. It’s managed by business Equifax and is a member-owned database of positive and negative small business trade line data including loans, credit lines, leases, credit cards and SBA loans.

To participate in data sharing with SBFE you must be a financial institution or leasing company. If you are interested in joining the SBFE, call 888-201-6879 or send an email to businessreports@equifax.com   

Small Business Exchange (SBX)

With the development of the SBX database, Equifax now offers both banking and leasing payment experience information and non-banking trade receivable history. This is great news for small business owners who don’t fall into the financial institution or leasing company category required by SBFE. Now there is a single source of data from banks, leasing companies and trade suppliers.

Data sharing with SBX is open to any company that provides products and services to small businesses on an invoice basis. If you are interested in joining the SBX, call 888-201-6879 or send an email to businessreports@equifax.com.   

Corporate Experian

Business Experian offers commercial trade reporting through the Internet via Secure HTTP.  If your business gets set up it can only submit payment data via electronic transmission. There is no fee or cost to participate.

To set up a user ID and password to begin reporting your data online call at 800-478-0650.

By reporting your customer’s payment experiences with creditors across the country, you help other business decision-makers reduce their credit risk plus ensure the growth of your company and that of the business community at large. Begin reducing your customer late payments, defaults, and improve collections by reporting to a business credit bureau today! Stay tuned for additional posts on how to get set up with additional bureaus.

To access business credit insider secrets, premium vendors, leasing companies, business credit cards, and lenders that report to all the major business credit bureaus become a member of my Business Credit Insiders Circle. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insiders Circle. He is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in The Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.