Did you know that there are over 10 business credit bureaus?
With that in mind, when you start your business, creating a strong business credit score should be top of mind.
Therefore, you must be aware of the top three business credit bureaus so you can apply a laser-like approach to creating a solid business credit score.
Building up your business credit and maintaining a strong credit score will open up doors for your business that would be difficult to do with poor business credit.
A solid business credit score will help you to get business loans and credit cards when the time comes for you to scale your business.
The three business credit bureaus that we will be discussing todayare; Dun & Bradstreet, Equifax, and CreditSafe. These three business credit bureaus are the ones that you will want to keep a close eye on, even as a new small business.
Remember: your business credit is being created from day one. All it takes is a business registration and business bank account for credit bureaus to create a profile and score for your business.
Now, let’s dive into these three business credit bureaus.
Dun & Bradstreet
D&B is often most associated with business credit by large businesses and corporations buteven small businesses must become familiar with D&B.
D&B maintains a database of millions of business records. D&B uses that data to know a company’s payment history from suppliers and creditors. They also collect public records to determine a company’s credit score known as the Paydex score. Your business credit score with D&B can range from 1 to 100. The higher the score the better.
Take note: for D&B to collect data to create a credit score, you must request a D-U-N-S number (Data Universal Numbering System) from D&B directly. A D-U-N-S number is essentially a way to enhance the credibility of your business. It serves as the resume for your business.
Equifax is a credit reporting bureau that many are familiar with when it comes to their personal credit, and is just as relevant for your business credit.
They collect the following data on businesses; financial data, public records information, and feedback from creditors on payment history.
Equifax functions very similarly to D&B. Where they differ is their business credit scoring system. Equifax creates business credit scores that range from 101 to 992. They use their data on your business profile to predict if a business will be more than 90 days delinquent on any debt.
This is where you want to be incredibly mindful about your business credit as a small business owner. It is imperative that you work strategically to avoid late payments on any debt that you incur. Maintaining your credit score according to Equifax’s standards can help to keep your business in a healthy financial state.
They are a little lesser-known business credit bureau but they can be instrumental for new and very small businesses in building credit. CreditSafe reports a company’s legal filings, payment history and behavior (do you often pay your debts on time or late), and media coverage that a company receives.
CreditSafe prides itself on delivering the most accurate and up-to-date business credit reports for its customers. According to their website, they can predict up to 70% of insolvencies 12 months in advance.
They are widely trusted for their accuracy and partnerships with vendors who report the payment history of businesses.
Synture reports your business credit report to Equifax and CreditSafe every month when you join our affordable monthly membership program for small business owners that need credit monitoring services.
We won’t shy away from the fact that building business credit can feel complicated. There are often several moving parts to be aware of such as your payment history, any legal issues you face, and public records. All of these factors can impact how you scale your business over time.
However, we are committed to providing small business owners with transparent and up-to-date resources (such as this article) with the tools you need to keep your business on track for success. In short, we break down complex business issues so you won’t have to.
If you found this article helpful then our online business academy will serve as an even stronger resource for you. In our online business academy, we provide an extensive content library that covers the most sought-after topics in business. We also deliver lessons via video that dive deep into business management, business marketing, and business finances.
We stand by our promise to help you scale your business this year with the resources and guidance it takes to become an unstoppable entrepreneur.
Let us know in the comments if you have ever received your business credit report and if so, did you discover helpful information about your business?