Equifax uses verified business identities and detailed credit history with its predictive models to help you assess the credit risk and financial health of customers, clients, and suppliers. Before extending credit to a new customer or client, creating a purchase order with a supplier, or considering taking on a business partner, you can mitigate your risk by getting an independent appraisal of their financial situation.
Here is a summary of the information you get from an Equifax business credit report, including a risk score.
The Equifax Business Credit Report
The Equifax Business Credit Report provides a score summary that evaluates the financial health of a business to produce a:
- Credit score
- Repayment risk score
- Financial stability risk score
- Credit limit recommendation
It will also note:
- Days beyond payment terms
- Derogatory legal filings and fraud alerts
- Creditor balances
- Bankruptcies, liens, judgments, and UCC filings
Equifax Business Credit Risk Score
The Equifax business credit report produces an overall risk score to indicate the financial health of a business. The Equifax report analyzes a variety of factors to help you assess risk, including:
- Number of credit accounts
- Recent open/closure of accounts
- Charge-offs and amounts
- Credit inquiries
- The highest level of credit extended
- Total past due
- Credit exposure levels
- At-risk balances
- Total credit balances
With the Equifax business credit report, you also gain insight into the available credit a business has and how much of its credit line is in use. It will also detail the average days beyond term for accounts.
Equifax Repayment Risk Class
The repayment risk assesses bank loans, credit cards, and lease information. The score also takes into account supplier, telco, public records, utility credit history, and supplier data. The score predicts the likelihood of a business becoming severely delinquent for greater than 90 days, or taking a charge-off, within the next year.
This information helps you assess the likelihood of getting paid within terms. Even if companies have an acceptable overall score, if you see late pays start to increase, it can provide a warning to you before you extend credit.
Along with the repayment risk, the Equifax business credit report shows recent trends for payment history and produces a payment index for the business and a comparison against similar businesses within its industry.
Equifax Public Records Search
A public records search can also uncover signs of financial stress. The Equifax business credit report will show summaries, including dates, numbers, and dollar amounts for:
It will show which, if any, are active and whether the judgments and liens have been satisfied.
If you have a concern about a company’s viability, you will also want to check Uniform Commercial Code (UCC) filings. UCC filings allow creditors to notify others when a debtor uses its assets as collateral for a secured transaction.
How the Equifax Business Credit Report Risk Dashboard Helps You Evaluate Risk
An Equifax business credit report gives you the information you need to make better decisions about extending credit and ensuring you get paid promptly for goods and services.
Here is how the information contained within the Equifax business credit report can be used to protect your business interests.
- Company financial information helps you evaluate the credit risk before granting credit or agreeing on terms.
- Credit scores and risk factors predict the likelihood that you will get paid on time and any risk of credit defaults or bankruptcy.
- Credit allocation, usage, and payments histories demonstrate how a business has managed credit with other suppliers and can indicate financial stress.
- Liens, bankruptcies, or judgments show warning signs of diminishing financial health and help you avoid entering into risky transactions.
- UCC filings help you determine your credit position with other creditors in case of bankruptcy. Those with secured positions get paid first.
- Business background information identifies ownership and guarantor information, parent companies (if any), and estimates on annual sales revenue.
How to Buy an Equifax Business Credit Report
It is easy to buy an Equifax business credit report with accredit. Simply sign up for a free account, select the type of business credit report you want, and download it instantly. There is no need to sign up for a subscription or ongoing commitment. Buy one report, or as many as you want, on-demand.