Step 12. Credit Reporting Agencies for Business

You’ll need to know about three major business credit-reporting agencies: Dun & Bradstreet, Experian Business and Equifax Small Business.

Credit Reporting Agencies That Report On Your Business

Throughout this section, you’ll learn about business credit reporting with all of the three business credit reporting agencies. This includes Dun & Bradstreet, Experian Business and Equifax Small Business. This will give you a new file and make sure your existing files are reported accurately.

 

The step-by-step instructions in this section show you how to properly set up your file with each business reporting agency in clear, well-written instructions. These procedures are known to deliver quality results, increasing the chances of securing a loan for your business.


1. Dun & Bradstreet
– Used by lenders when you apply for business loans and financing.

 

This is the world’s leading source for information on business and commercial matters. They have over 237 million companies listed in their massive databases, with 1.5 million updates made on a daily basis. Most suppliers, lenders, and companies that provide leases will share information and pull business credit reports from this agency. This is often used to asses the creditworthiness of companies like yours.

A “D-U-N -S® Number” is required by more than 200 associations, including trade and industry groups. Even the U.N., European Commission, and the government of the United States use Dun & Bradstreet as a resource.

 

When you work with Dun & Bradstreet, you will be assigned a D-U-N-S® Number and a rating. It’s important that you have these designations, because they will be used to build your business credit. D&B is often used by vendors to see if they should give your company net terms. It’s also preferred by landlords when approving office and commercial leases.

 


2. Experian Business
– Used by lenders when you apply for business credit cards.

This is another massive player in the business credit industry. They have over 27 million listings for companies from a wide variety of markets. The biggest difference between Experian Business and D&B is that Experian does not allow you to self-report trade references. The only way to have your information listed is to conduct business with a creditor that furnishes information to the agency. You can also work with suppliers who give payment information to Experian Business.

 


3. Equifax Small Business 
– Used by lenders when you apply for business credit cards.

With over 80 million listings for various companies, Equifax Small Business plays an important role in the business credit industry. It’s often said that this agency is the most difficult to get listed with, as the majority of reporters are banks and leasing companies. The only way to get listed is to work with a creditor, lender, or business supplier that offers payment information to the agency.

 

It’s so difficult to have a listing with Experian because their requirements are more demanding than Dun & Bradstreet and Experian Business. This agency manages the Small Business Financial Exchange, so it’s vital to cash lenders and banks alike.

 

Working with business credit reporting agencies is essential. In the next step, you will have a detailed understanding of the business credit reporting process and know how your credit reports and scores are made.

 


A Good Business Credit Score: By the Numbers

FICO scores for personal credit range from 300 to 850, and scores around 720 are considered strong and healthy. Business credit scores, however, range from 0 to 100, and scores of 75 or more are considered ideal. Remember that each business credit reporting agency has their own system for scoring credit, with various formulas and models. Dun & Bradstreet, for example, use the Paydex®, while the other two use Intelliscore.

To Do List To Complete In This Step

1. Review all three business credit bureaus.

2. Understand the difference between business credit bureaus.

Business Bureaus
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