A business credit report helps you make better decisions about your business and dealings with your clients, customers, and suppliers.
When you pull a business credit report on your company, you can see how others judge you when it comes to extending credit or applying for a business loan. Getting a report on your customers and clients can help you assess their financial situation before you enter into credit agreements. A business credit report on suppliers can help you evaluate their ability to deliver on their promises.
This information you get from a business credit report can help you mitigate the risk of delinquencies, protect your supply chain, and safeguard your cash flow.
The Experian Business Credit Report
Experian tracks credit usage among more than 27 million businesses in the U.S. The Experian business credit report includes a Risk Dashboard, which provides you with valuable information, including:
- Overall credit score
- Repayment risk
- Financial stability risk
- Days beyond payment terms
- Derogatory legal filings, and fraud alerts
Based on past behavior, you also receive recommendations on credit limits.
The Experian Business Intelliscore Credit Report
An Experian business Intelliscore report provides an overall score that predicts payment behavior. When there is a high risk, it means there is a significant probability that you may experience delinquent payments. Conversely, a low risk shows that is a high likelihood of on-time payments.
The credit score uses these key factors to create an overall score:
- Commercial accounts with terms other than net 30
- Commercial accounts that are not current
- Commercial accounts with high utilization
Scores range from 1 to 100, with higher scores being better.
Experian Financial Stability Risk Score
Your business credit report will also evaluate a company’s risk of severe financial distress within the upcoming year. Scores range from 1 to 5 using tradeline and collection information plus any public filing to predict future risk. Higher scores indicate less risk.
Key rating factors for the financial stability risk score include:
- Total number of commercial accounts
- Risk associations within the industry sector
- The risk associated with business type
- Credit balances with high ratios for commercial accounts
Experian Credit Summary
An Experian business credit report provides a credit summary that shows payment trends over time, including delinquencies. This includes:
- Current days beyond terms
- Predicted days beyond terms
- Trend indicators
- Lowest and highest balance over the previous six months
- Current credit balances
- Highest and median credit amounts extended
This section of the business credit report also includes payment tradelines, UCC filings, bankruptcies, liens, judgments, and collections.
Since businesses and industries operate differently, Experian also provides an index showing how businesses fare versus similar companies.
How the Experian Business Credit Report Risk Dashboard Helps You Evaluate Risk
An Experian business credit report provides valuable information that helps you make better business decisions about customers, clients, and suppliers.
- Business background information helps you identify ownership plus any parent companies or subsidiaries.
- Company financial information helps you assess credit risk for both terms and credit levels.
- Credit scores and risk factors predict a client’s ability to pay and the likelihood they will pay on time.
- Banking, trade, and collection histories provide information about how a client has managed credit with other suppliers.
- Liens, bankruptcies, or judgments show warning signs of financial stress so you can avoid entering into risky transactions.
- Uniform Commercial Code (UCC) filings help you determine your credit position with other creditors. This shows how far down the list you are in getting paid if a business goes into bankruptcy.
How to Buy an Experian Business Credit Report
Pulling an Experian business credit report is easy with accredit. You do not need to sign up for subscriptions or make any ongoing commitment. You can buy a business credit report by signing up for a free account, selecting the report you want, entering the business name, and clicking.
Reports are available on-demand and can be downloaded instantly for viewing. You can buy as many Experian business credit reports as you want and only pay for what you need.
You can check on the credit score for your business or proactively evaluate credit risks for your clients or customers, and make sure your suppliers are financially stable.