Business Credit Bureau – Equifax

In a recent press release Equifax announced the launch of a small business program that now allows you to order your small business credit report.

This is great news for business owners because up until now the only way you could obtain a copy of your report was if your company was declined credit based on a member pulling your report.

Here is a brief overview of the press release:

Equifax Inc. (NYSE: EFX) today announced the launch of its Small Business initiative with services to help businesses understand, monitor and strengthen their own credit performance as well as the credit health of the companies they’re doing business with.

Through Equifax’s new Small Business website (equifaxsmallbusiness.com), customers can purchase the Business Credit Report, to easily and cost-effectively check the credit reports of nearly 25 million firms, supplying smaller companies with the type of information to help reduce losses, establish business credit, and benefit from profitable business relationships.

The reports, available via credit card individually or in discounted multi-packs of five, help customers evaluate a potential partner or supplier as well as gain valuable insight into their own business credit score. Unlike others in the industry, Equifax has an exclusive partnership with the Small Business Financial Exchange (SBFE), an organization made up of more than 400 small business financial institutions with a database on more than 24 million companies. This exclusive relationship allows Equifax to combine this unique information with its own distinctive data to offer the most comprehensive, relevant and predictive industry information in the United States.

“Equifax is dedicated to supporting this important segment of the business population by giving them easy access to the same comprehensive business credit data available to larger corporations,” said Dan Csont, Chief Marketing Officer, Equifax Commercial Information Solutions. “With a minor investment, a small business can prepare itself for large opportunities and mitigate risk.”

Equifax Business Credit Reports which are simple to obtain, easy to use and interpret include:

A trade and lending summary showing a company’s financial and non-financial obligations.

A public records summary detailing any judgments, liens, or business registration with secretaries of state.

Three scores to help evaluate a company’s credit risk, payment history and likelihood of business failure.

To help keep an ongoing, watchful eye on critical partner, supplier and customer relationships, Equifax also offers Business Credit Monitoring and Alert services. This service tracks a company’s credit report and sends a daily email if significant changes occur to it. Businesses also use the service to monitor their own business credit scores to help manage their own commercial credit.

To view the press release in its entirety titled Equifax Launches Small Business Program visit the Equifax web site.

SOURCE Equifax Inc.

With Experian launching its new Triple Score Business Credit Report and Dun and Bradstreet joining forces with Transunion and now Equifax announcing its own small business program it’s clear to me that business credit is finally getting the much needed attention it deserves.

Ready to get your business listed with the major business credit bureaus? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit solutions membership helping business owners obtain business credit. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet 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 American Express Small Business, Business Week, the Washington Post, the San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Business Credit Ratings

There’s been quite a stir on the integration of FICO® 08 which is the credit scoring system used by the majority of lenders to determine a consumer’s credit worthiness. Similar to your personal credit ratings, businesses and corporations also have business credit ratings that potential lenders use to determine its credit worthiness.

Unlike a personal credit rating, there is no designated standard for determining the credit worthiness of businesses. However, the main tool used to determine and establish company credit ratings is D&B’s PAYDEX system.

Where a personal FICO® score is based only on credit history that includes information on how much a person borrows and how well they repay loans, a credit rating for a business takes into consideration company size as determined by assets and number of employees.

Where personal credit ratings are based on financial information provided by credit card companies, retail establishments, and financial institutions, a business credit report and rating is determined by information supplied by the business owner and gathered from vendors, suppliers, and other trade accounts.

For this reason, potential lenders may be different from one another in their evaluation of a business’ credit history by emphasizing certain qualifications more than others.

Like most industries, there is a specialized language involved with business credit reports and ratings.

The following is a list of some of the most common concepts and terms as well as their definitions:

Average High Credit / Highest Credit

In order to put a business’s credit in perspective, these are based on the total amount of credit owed as compared to the industry as a whole.

Business in Good Standing

Includes any problems with the business overall.

Commercial Credit Score

A D&B prediction regarding the chances of an account becoming severely delinquent within one year.

Comprehensive Report

This is a combination of several D&B business credit reports that paints a more complete picture of the company’s credit history. It includes the results of the PAYDEX analysis, a company’s credit score and Financial Stress class, as well as any public filings or liens, the business’s history and operations (including when it filed for incorporation, annual financial statements, facilities, affiliations, and number of employees).

Credit Score Class

This is part of the D&B assessment that gauges payment habits to determine how likely it is that a potential account will be delinquent in the next 12 months. The scoring can range from 1 to 5 with 1 being the score assigned for the lowest risk and 5 for the highest.

Financial Stress Score

This is part of the D&B assessment that analyzes the Financial Stress that a business is experiencing in order to predict how likely it is that a business will fail in the next 12 months.

PAYDEX

This is D&B’s primary assessment that analyzes how likely it is that a company will make its future payments on time. An 80 paydex score for a business can be compared to having a 720 personal credit score.

Sample business credit reports:

Dun & Bradstreet business information report sample

Dun & Bradstreet enhanced comprehensive report sample

Dun & Bradstreet Credit eValuator Plus Report sample

Corporate Experian Business Credit Score Report sample

Small Business Equifax Commercial Credit Report sample

To order business credit reports:

Dun & Bradstreet (D&B)

Equifax Small Business Enterprise

Experian SmartBusinessReports^TM

Every business will at one point require an influx of cash in order to cover operating expenses, expansion costs, legal fees, inventory or a range of other items the business may require in order to operate. The worst mistake you can make is seeking funding when your business needs it most. Lenders extend cash credit lines to businesses that don’t need the capital and have strong business credit ratings. Start digging your well before your business gets thirsty!

Are you ready to start building your business ratings? Become a member of my Business Credit Insiders Circle and gain access to a proven step by step business credit building system. A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the Author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A business credit solutions membership helping business owners build small business credit. 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 Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Business Credit Bureau:Equifax Launches Small Business Program

Business Credit Bureau – Equifax