Business Credit Reporting Agencies
Imagine running a small business whose survival relies heavily on clients consistently paying their dues. When a client falters on their payments, the ripple effect on the business’s cash flow can be damaging. This can cascade into the business failing to meet its own obligations to its suppliers.
By conducting a company credit check, you get a clear picture of another company’s credit position. This information is invaluable when deciding whether to do business with them or not.
5 Best Commercial Credit Risk Solutions
By Latoya Williams and Avi Grunwald - 10/15/2023.
Fact checked by Chris White.
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Coverage: Global, with a database indexing 49 million US businesses.
Monitoring & Alerts: Yes.
Price: $139.99 - $118.99.
First-party data: Yes.
Key Features:
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Highly accurate risk assessment and predictive indicators.
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Maximum Credit Recommendation.
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Incorporates consumer credit into the risk calculation for small businesses.
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Payment history and company's past financial performance.
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Predicts company's future performance using various scores.
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Coverage: Global, with a database indexing 25 million US businesses.
Monitoring & Alerts: Yes.
Price: $15.00 - $5.00 (Free trial).
First-party data: Yes.
Key Features:
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Predicts company insolvencies 12 months in advance with 70% accuracy.
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Payment information, Days Beyond Terms (DBT) score, Derogatory Legal data, Payment Trends, Business Spend Trend, and Inquiry Trend.
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Comprehensive monitoring with customizable alerts.
3
Coverage: USA + Some International (30 million+ businesses)
Monitoring & Alerts: Yes.
Price: $39.95 to $49.95.
First-party data: Yes.
Key Features:
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Easy to use and navigate platform.
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Reliable customer support.
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Comprehensive international data.
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Verified data on more than 30 million businesses.
4
Coverage: Database indexing 29+ million US businesses.
Monitoring & Alerts: Yes.
Price: $1.50 to $0.30.
First-party data: No.
Key Features:
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Delivers over 100 risk insights with a single lookup.
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Taps into alternative data sources to identify fraud and credit risk.
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Customizable risk model.
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Very affordable.
Disadvantages: No actual payment behavior data.
5
Coverage: North America (20+ million companies)
Monitoring & Alerts: Yes.
Price: As low as $6 per report.
First-party data: Yes.
Key Features:
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View a company preview before purchasing the report.
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Linking to your AR automatically.
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Access free tools.
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Affordable.
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Calculate company risk by benchmarking it against the industry.
Disadvantages: Limited data on US companies.
Dun & Bradstreet is our top recommendation for businesses seeking comprehensive, accurate, and predictive credit insights on other companies. Their extensive coverage and most accurate predictions will give you the confidence to extend credit to other businesses and corporations with confidence.
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Predictive Indicators: Highly accurate risk assessment tools, including D&B® Delinquency Predictor Score, Financial Stress Score, and Supplier Evaluation Risk Rating, provide insights into potential future performance.
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Maximum Credit Recommendation: Recommends the maximum amount of credit one should extend to another company based on their credit data.
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Payment History: Reveals a company's payment behaviors over the last 24 months.
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Consumer Credit Link: Incorporates consumer credit to predict small business risk.
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Automated Credit Risk Management: Streamlined and powerful tools for assessing and managing credit risks.
The full business credit report serves as a comprehensive dossier on a company's financial standing. Three predictive scores forecast how a business might fare in the next 12 months. The PAYDEX® score and the D&B® Rating provide insights into a company's previous payment behavior and net worth range, respectively. The Maximum Credit Recommendation, an essential tool, aids businesses in making decisions on credit extensions based on the vast information reservoir of the Dun & Bradstreet Data Cloud.
For businesses aiming to extend credit, collaborate, or assess the financial standing of other companies, Dun & Bradstreet serves as an invaluable resource. Its extensive database and intricate credit scoring systems enable businesses to make decisions backed by data and comprehensive analysis.
Dun & Bradstreet business credit risk sample
Preview, sample of Dun & Bradstreet business credit report
Dun & Bradstreet business credit risk sample
Creditsafe
Creditsafe stands as the world's most utilized provider of business credit reports. With its holistic approach, Creditsafe ensures businesses have access to reliable, predictive, and comprehensive credit data.
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Predictive Credit Scoring: Boasts an industry-leading system, predicting up to 70% of insolvencies up to 12 months in advance.
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Comprehensive Reports: Eschews the tiered report system, offering all pertinent details in a singular report.
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Extensive International Coverage: Holds ownership of 365 million company reports, ensuring instant online delivery.
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Endorsed by Insurers: Their credit scores and limits are vouched for by all major US credit insurers.
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Dedicated Support and Account Management: Personalized account management and stellar response times, typically within an hour.
Preview sample of Creditsafe business credit report
Preview sample of Creditsafe business credit report
At its core, Creditsafe’s offering hinges on its predictive prowess—its system's ability to forecast a significant proportion of insolvencies up to a year before they occur provides businesses a crucial advantage.
Every client is paired with a dedicated account manager, ensuring personalized service. This, coupled with rapid response times, makes Creditsafe not just a provider, but a partner to its users.
Experian
Experian is a trusted name when it comes to business credit report needs. Here are some of the notable features and reasons why businesses prefer their services:
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Comprehensible Reports: Experian offers easy-to-read business credit reports and scores, ensuring that even those not familiar with financial jargon can understand their credit status.
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Flexible Packages: Whether you need a single report or multiple ones, Experian provides flexible options tailored to your needs.
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Reliable Scoring: Their business credit scores are based on reliable factors, ensuring an accurate representation of your business's creditworthiness.
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Comprehensive Ratings: The reports include both Intelliscore and Financial Stability Risk ratings, offering a holistic view of your business's financial health.
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Monitoring and Alerts: Experian offers credit and identity monitoring for businesses. If there are any changes to your report or potential threats, you'll receive timely alerts.
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Extensive Database: The service boasts verified data on more than 30 million businesses, ensuring wide coverage and accuracy.
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Secure Transactions: Accessing your business credit report is safe and secure with Experian's credit card transaction system.
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Mobile-Friendly: For businesses on the go, Experian's interface is mobile-friendly, ensuring you can access your reports from anywhere and any device.
Preview, sample of Experian business credit report
sample of Experian business credit report
Preview, sample of Experian business credit report
Honey Badger offers an alternative approach to determining credit risks by tapping into secondary data sources. Ideal for businesses without typical credit bureau data.
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REST API & Web Portal Access: Facilitates lookups through its REST API or directly from its web portal, with the added benefit of returning your risk score with every query.
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Risk Insights: Offers over 100 risk insights with just basic company and personal contact information.
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Customizable Risk Models: A visual tool lets users select and define risk insights pertinent to their company, enabling auto-flagging of high-risk customers.
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Alternative Data Sources: Instead of relying on traditional credit and payment behavior data, Honey Badger delves into various alternative sources, from email insights to mobile network affiliations.
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Company Analysis: Examines a company's accounts and filing history to detect potential credit risks, including overdue accounts, officer changes, and numerical anomalies.
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Affordable: Positioned as a cost-effective solution compared to many competitors.
Preview, sample of Honey Badger business credit report
Preview, sample of Honey Badger business credit report
Moody's
The Moody’s Analytics Pulse platform equips businesses with insights and tools essential for protecting accounts receivable (AR) portfolios from unpredictable businesses, thereby ensuring a seamless blend of technology and extensive B2B credit data.
AR Portfolio Analysis: Gives a comprehensive outlook into portfolio or prospective companies, enabling better decision-making.
Customizable Alerts: Streamline portfolio monitoring with timely alerts and tailor details to fit business decisioning thresholds.
Relevant Payment & Spend Data Access: Provides the most current and pertinent payment and spend data for businesses.
Extensive B2B Transaction Search: Allows for identification of accounts with slower payment behaviors.
Integrate Risk Scores: Seamlessly integrate risk assessment scores with a company's own portfolio data.
Its core strength lies in its harmonious merger of advanced technology with an expansive database of B2B credit information, predominantly in North America. By offering insights with unparalleled precision, the platform aids businesses in taking pre-emptive action, safeguarding their receivables even before they are at risk.
What is a Company Credit Check?
Businesses, just like individuals, can have credit scores. And just as lenders check personal credit scores when deciding whether or not to lend to an individual, a company credit check offers similar insight into a business’s financial health.
The Essence of a Company Credit Check
A company credit check, also known as a business credit check, delves deep into a company’s financial history. This check results in a comprehensive report detailing how responsibly a business has been managing its financial obligations.
A business credit score is a culmination of this analysis - a numerical expression that rates a company’s creditworthiness. Typically, the score spans from 0 to 100; 0 represents high risk, while a score of 100 indicates a low-risk entity. When a business showcases a high credit score, it signals to lenders and other stakeholders that the business is diligent in settling its bills.
Drawing the Line: Personal vs. Business Credit Checks
While both personal and business credit checks provide insights into credit histories, there's a stark distinction between the two:
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Business Credit Reports: These are, more often than not, public records. A company's strategic efforts in maintaining good business credit become a beacon for public observation. Therefore, one doesn't require explicit permission to access a business credit score.
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Personal Credit Reports: These are centered around individual financial behavior. It showcases personal financial involvements like credit accounts, liens, bankruptcies, and delinquent accounts. Unlike business credit reports, these are private and accessing them requires permission.
Anatomy of a Business Credit Score Check
A business credit score report is not just a mere number. It’s a detailed document elucidating various facets of a company’s financial history. Here’s a snapshot of what one might find:
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Business Profile: This section unravels the basics about a business. Details like its legal name, operational address, contact information, the number of employees, incorporation details, and more can be found here.
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Tradeline Payment History: A meticulous record of a company’s payment behavior over the past three years. It indicates if the business has been punctual with its payments or if there have been instances of delinquencies.
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Commercial Financial History: This delves deeper into a company’s interactions with its lenders, creditors, and even insurers.
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Legal Filings: Any legal entanglements, collection reports, or even bankruptcies that the company has been involved in will be detailed here.
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Business Credit Score: The heart of the report, it signifies the level of creditworthiness a company possesses.
Free Business Credit Report
Many commercial credit bureaus, like Creditsafe, are now offering the opportunity for businesses to run credit checks at no cost. With options like free trials, businesses can access a set number of credit checks annually without any charges, providing a valuable tool to assess potential commercial partners and ensure financial stability.
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