There are many reasons why you might want to get a business credit report for a company. If you own or work for a lending institution, then examining business credit reports of companies that come to you for a loan is an everyday part of your work. But apart from this, if you are a small business owner, you might want to verify the creditworthiness of any other company you are considering doing business with, whether a supplier, a customer, or a potential partner. Before extending credit terms to a new customer, you might want to check their credit history. Even if you are simply a consumer rather than a business owner, you might consider checking the credit histories of contractors who are bidding on remodeling jobs in your home, for instance, or service providers with whom you might enter into long-term agreements.
There are several credit bureaus in the United States and overseas that compile business credit reports; depending on your needs, you can rely on a single report from an established firm, or purchase several reports and compare them. If verifying the creditworthiness of companies is a major part of your business, you can purchase various packages from the credit bureaus, giving you access to credit data on an ongoing basis.
The most widely cited business credit bureau is Dun & Bradstreet; D&B offers a variety of reports that are updated constantly. You can visit their website, type in the name of the company you are interested in, and then purchase the report you need. The simplest is the “Credit Evaluator Plus”: a summary report that includes a company’s payment history (with comparisons with industry benchmarks), credit limit recommendations, legal filings, and more. Also included is the D&B “Paydex Score,” a widely referred to score that reflects a company’s ability to pay its creditors on time. The Credit Evaluator Plus report costs $59.99, per company, for six months of access.
D&B also sells more comprehensive reports — a Business Information Report (at $119) and Comprehensive Insight Plus Report ($149) — that are more in-depth. These reports are designed to help you assess the risk of doing business with a company, particularly with regard to extending credit terms. Dun & Bradstreet offers a variety of additional, more comprehensive business analysis tools, some of which may cost hundreds of dollars. D&B’s website provides sample reports for most of their products, as well as charts comparing the features of various reports. If you believe you may be doing a considerable amount of business with Dun & Bradstreet, call them and ask about comprehensive packages.
Experian and Equifax are primarily known for monitoring consumer credit, compiling credit reports for millions of individuals in the United States and overseas and calculating FICO scores (the all-important “credit ratings”) for individuals. These companies also monitor businesses, and produce business credit reports that can be purchased at their websites. BizVerify, Experian’s most basic business report, costs only $8.95; CreditScore and ProfilePlus, at $29.95 and $49.95 respectively, offer progressively more information. However, these reports are sold as static documents; as at Dun & Bradstreet, Experian updates its credit reports on a constant basis. Experian’s Business Credit Advantage service allows you to subscribe to a company’s credit report for $14.95 a month, or $99 annually. If you anticipate doing substantial business with a particular company, an annual Experian subscription may be your best deal.
Equifax, likewise, sells a variety of business reports online. A basic business report on single company costs $99.95; a package of five reports on five companies costs $399.95, saving you $100. And business monitoring is $19.95 a month. Sample reports are available online.
Some other credit bureaus compile information on businesses and sell reports. Credit.net, Accurint Business, and ClientChecker all have information on millions of companies and sell reports online. It’s unlikely, however, that you’ll need to be so thorough. Pick one credit bureau whose reporting format you like, and work out an arrangement with them. Using the information compiled by these bureaus can help you choose the right suppliers, customers, and business partners, possibly saving you a great deal of money over the long term.
