Business Credit Reports

Your business credit report may be used by a variety of individuals and businesses for a variety of reasons. Most commonly, creditors and lenders view your corporate credit to make a lending decision about you. Suppliers, like office supply stores, with whom you seek a credit line with will also check your business credit report. Prospective partners can run a business credit check on you to decide whether they want to do business with you. Even your competitors might view your report to tell how your business is doing fiscally.

What’s on a business credit report

Your business credit report contains information about your business, location(s), years in operation, number of employees, sales, and net worth. A business credit report, like a personal credit report, contains detailed information about your payment history. Payment history will include the number of accounts, amount loaned or the credit line extended, the term of the account, and the timeliness of your payments. Building business credit is very similar to building your personal credit: Timely payments and not getting too overloaded with debt are key. Collection accounts, if any, will also be included in a business credit report. If you were ever slow on a payment, that information shows up on the report too.

Financial standing is also included in a business credit report. This includes information about assets, liabilities, working capital, net worth, sales, and net profit. If your business has ever had any judgments, lawsuits, or liens, this information will appear on your business credit report.

Your business may not have a report

You may not have a business credit report if you’re a new business, if you don’t have any tradelines in your business’ name, or if you don’t have a DUNS number. Your DUNS number is a unique identifier that’s used by Dun and Bradstreet, a company that accumulates and provides business credit information. When you apply for tradelines with other companies, make sure to provide your DUNS number so the information will be included in your D&B credit report.

Dun and Bradstreet is only one of two major companies that provides credit reports. Experian, one of the big three credit bureaus for personal credit, also provides credit reports for businesses. These reports are tied to business name and location.

The Fair Credit Reporting Act does not entitle you to a free business credit report, as it does a free personal credit report. But you can legally receive a free report any time your business is denied for a new loan or line of credit. Simply write to the credit bureau cited on your rejection letter, and the credit bureau should send your report within 30 days.

Keeping business separate from personal

Information about your business accounts may appear on your personal credit report if you are a sole proprietor or if you use your Social Security number to apply for business credit cards, loans, and other tradelines. When your personal and business credit intermingle, you risk being denied for loans and other services because you can appear to be overextended. You can keep business credit separate by incorporating your business and avoid applying for credit in your personal name.