Business Credit Report/Score
Finding out more about your business prospects, customers, and suppliers helps you make confident decisions and set conditions that maximize profitability and reduce danger. Equifax is one of the three major consumer credit monitoring services, as you are already aware. But did you know how to get Equifax business credit report? If you own a small business, you should be familiar with these reports because your creditors, suppliers, and even business partners can use them to make decisions about your company.
Equifax’s Business Credit Report is Important…
Equifax provides broad coverage and breadth of detail, whether you need internal or foreign business credit reports, with an unprecedented emphasis on the vital small enterprise market. Every business owner must know how to get Equifax business credit report as Equifax Credit reports give you the deepest insight into any companies’ legitimacy, financial health, and success, ranging from checked business identities to comprehensive credit records to business owners and corporate links.
Equifax Business Credit Report Include
Equifax will evaluate all of the above-listed data in the following ways:
Equifax can include any unpaid balances you have with retailers or creditors, such as days past due, as well as your business’s worst delinquencies over the last two years while reviewing your payment history. This encompasses both financial and non-financial transactions. A good credit score is dependent on the company repaying all of its debts on time.
History of Credit
Equifax will weigh how long the oldest financial account has been open while evaluating the company’s credit history. The longer you’ve had your account available, the better, as it indicates a longer credit history.
Credit inquiries and credit usage are two other things to consider. A large number of credit inquiries in your company’s history may be a warning sign. Equifax aims for a loan usage rate of no more than 30% to 40% at any given time ($40,000 in use on a $100,000 line of credit).
Your business credit score will suffer if there is negative information on the public record about your business. Judgments against your business, credit liens and bankruptcies all fall under this category. If any of these things have happened to your business, Equifax will take the most recent case into account when determining the severity of the consequences.
Breakdown of Scores
These assessments can result in a series of ratings. While most credit bureaus will give you a single credit score ranging from 1 to 100, an Equifax business credit report will give you three scores: Payment Index, Business Credit Risk Score, and Business Failure Score.
Score on the Payment Index
Your Payment Index score is a representation of your average credit score. This number ranges from 1 to 100, with 1 being the lowest and 100 being the highest. The figure is calculated using your company’s payment history. Your business credit score will range from 90 to 100 if you pay your bills on time. Your credit score will drop to 80 to 89 if you have even one bill between 1 and 30 days past due.
If you have bills that are 31 to 69 days past due, your credit score will decrease between 60 and 79. Bills that are 61 to 90 days past due receive a score between 40 and 59, while bills that are 91 to 120 days past due receive a score between 20 and 39. You should expect a score of 1 to 19 if you have bills due after that.
Credit Risk Score
Equifax business credit risk ratings range from 101 to 992, with the higher the score, the lower the risk. This score aims to assist lenders in answering the following questions: Will I be paid? When am I going to get paid? Is there a problem with my customer’s finances? I’m not sure how much credit I can give out.
A score of over 556 is generally considered fine, while a score of 0 suggests bankruptcy.
Failure Risk Score
Your Equifax business failure risk score ranges from 1,000 to 1,610, with a lower score suggesting a greater risk of the company going out of business in the next 12 months. Commercial demographic data, credit and payment information, and legal records are used to measure this ranking.
Equifax as a Business Growth Tool
Equifax is one of the largest credit reporting services for small companies on the market. If your score isn’t quite where you’d like it to be, check out our guide to improving your business credit score. If Equifax gives you a high score, it opens up a world of financial possibilities for your business.
Know how to get Equifax business credit report and if your business credit score is high, you probably know what you need to do to take advantage of those opportunities.