Business Credit Reports

Written by Kimberly Clark
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A business credit report tracks and records the credit history and payment habits of companies and small businesses. This information can be a valuable tool for any business owner or investor that is considering conducting business with a company they are unfamiliar with. It can also be quite useful for those business owners who want to verify that their own information is being reported correctly and to see how well their business compares with others in the same industry.

What It Contains

The business credit report contains standard identifying information about the business like the company's name, address and phone number. Typically, the reports will also include demographic information about the company like the number of employees the company has and the type of business it does. Where applicable, the report will also post the company's latest sales figures and corporate officers.

Perhaps the most important information contained in the business credit report is the company's credit relationships and payment habits. Additionally, the report shows any accounts the company has in collection or any judgments or tax liens that have been filed against it. Many business credit reports also contain a risk assessment section, which allows potential business partners to compare their company's performance to others in the same industry.

To further assist creditors, investors, and business partners in making the decision to do business with the company, the agency that prepared the business credit report will generally assign a rating to the company's credit performance. However, each credit reporting agency has a slightly different way of determining a company's rating. For instance Experian has five categories it rates a business on ranging from "Acceptable" to "Bankruptcy," whereas Equifax assigns a numerical score.


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