As with your personal credit scores, it’s important to check your business credit scores regularly, as credit bureaus can make mistakes or have incorrect information about their reports. Three of the most important are Dun & Bradstreet, Equifax Business and Experian Business. For example, Dun & Bradstreet uses what it calls a D-U-N-S number® to track any physical location of businesses: you’ll need to request one to appear in your system.
Creating a business credit score helps your business build the credibility that matters to banks, lenders, suppliers, and partners. Experian business credit reports help owners and financial officers better understand the health of the companies they do business with. In addition to the factors we’ve mentioned above, other credit report information may include details about your business, such as the number of employees, subsidiaries, sales, and more. It lists every credit-related transaction so you can use the report to find inaccuracies to protect your credit. The most important thing to consider when calculating a business credit score is whether your company pays its bills on time. All credit bureaus look at that, and sometimes that’s the most important thing that’s part of determining your business credit score.
The big three business credit bureaus analyze a company’s payment history and other financial data, and also look at public records. If there are tax or legal issues, such as liens on a property, that affects a business owner’s credit and business credit risk score. FICO SBSS uses business credit reports and a personal credit report from the owner or owners, and additional financial information, to determine creditworthiness. The FICO SBSS is required by the Small Business Administration, as well as banks, credit unions and other lenders.
Even if you could start your business with your own savings, the time will come when you will need to access additional funds. It will be incredibly helpful for you to understand the big picture when it comes to business credit. All business credit reference tenant credit checks agencies report overdue payments and negative data that affects a company’s credit score. Therefore, accuracy is very important for business credit profiles, as the slightest business registration error can be detrimental to your business credit score.
Just by checking these scores and making sure they’re strong, you’re ahead of most business owners who never check theirs or work on them. TransUnion collects all transactions related to credit and is also based on data from public reports. The company aggregates the information and issues corporate credit reports, assigning a number that establishes a financial stability risk classification. Your company’s financial history is not affected by your personal credit scores, except with the FICO SBSS score, as discussed above.