Business credit information is generated by various credit agencies when credit applications are approved. These financial reports can be inspected at any time during the decision making process on whether or not to approve a business with credit. There are many different forms of business credit information, such as checking accounts, trade lines, business loans and leases. A business credit report may contain information regarding income, expenses, assets, liabilities and ownership of shares in a business. It can also include information regarding an individual's business credit history, assets, liabilities, purchases, sales, and financial data pertinent to the approval of a business loan or line of credit from a bank.
Businesses rely on the accuracy and reliability of business credit reports and other personal credit reports to aid in making important business decisions. Business credit reporting provides vital information to companies in making important business decisions. Without this crucial information businesses would face a lack of necessary financing options could be denied based on inaccurate personal credit reports. Personal credit reporting has been made mandatory in most states as a condition of obtaining a business loan. Business credit reporting is a key component to business credit records, therefore businesses must have a copy of their personal credit reports from all three credit bureaus. Credit bureaus compile business credit reports and distribute them to lenders for review.
Business credit information from the three major credit reporting bureaus are used to give business lenders an assessment of a company's ability to pay off debts, at what rates, and in what amount. Lenders use business credit information scores to evaluate an applicant's business capacity to pay off debts. Businesses can get their scores from a reporting agency by paying a fee and getting a copy of their business credit reports. Businesses can choose which credit report they want to receive, but for free reports from all three credit reporting agencies are available.
All companies that have a credit rating of less than 500 should have a copy of their business credit information report and scores. The scores are based on several factors. Companies with zero dun points (dun = non-payback score) do not need to provide financial information. Companies that have a dun between one and ten dun points do not have to provide financial information, but they must provide a SSS number. All companies over ten dun points must provide financial information.
The SSS number is a unique identification number for each person, company, or account. Experian collects business credit reports and then calculates scores for each company or individual. The calculation of scores involves complex mathematical algorithms. Experian uses current and historical data to calculate the scores for businesses.
Businesses can get free copies of their business credit information report and scores from Experian, Equifax, and Dun & Bradstreet. Free consumer credit reports from these three business credit information reporting companies are usually available at designated internet sites. To receive a free copy . . . . . . of your business credit report and scores, you will need to provide your name, address, social security number, phone number, email, and birth date. Your scores will be calculated based on the information you provide. You will also need to select which of the business credit reports you would like to view.
If you would like more detailed information about your credit ratings, you can contact Experian, Equifax, or Dun & Bradstreet directly. Each of the business credit reporting companies offer a free service for U.S. consumers who wish to view their creditsignal scores. Businesses need to enroll in the appropriate credit monitoring service before they can get a copy of their scores. Businesses need to select the appropriate type of service from the companies that offer free service.
The three business credit reporting companies make a few mistakes on their business credit reports from time to time. Your scores will not be lowered due to errors made by one of the companies. They make errors because they do not have all the information necessary to make an accurate calculation for your score. If you notice any such error, you should contact them immediately. They can help you fix the problem.