FAQs - Click to see answer
How is my business credit determined?
Three types of information regarding your business is collected:
- Credit obligation information from your suppliers and lenders
- Legal filings from local, county and state courts
- Company background information from independent sources, including state filing offices, public records, credit card companies, collection agencies, corporate financial information and marketing databases
This information is combined with data from other sources, including:
- Actual trade payment experiences submitted by payees
- Public record information
- Collections information
- Company background and comparative data that places a company’s payment performance in context within its industry
What is actually calculated in my Business Credit Score?
Most credit scores are calculated by a statistically derived algorithm, designed to determine risk based on multiple factors.
- Credit: Number of trade experiences, balances outstanding, payment habits, credit utilization and trends over time.
- Public Records: Recency, frequency and dollar amounts associated with liens, judgments or bankruptcies.
- Demographic Information: Years on file, Standard Industrial Classification (SIC) code and business size.
I don't understand the data in the report. Who can I call for help?
Us silly goose! Our customer service line is 971-230-1180.
Why do some credit lenders and suppliers not appear on my business credit report?
If a supplier or lender that you deal with isn't listed on your business credit report, it's most likely because the supplier doesn't report your payment history to the credit bureaus. If you find that a supplier you work with does not report to the credit bureaus, we would be happy to talk to them and explain the BENEFITS of data contribution.
How long will data remain on my credit report?
Each bureau can vary, but below are some standard times:
- Trade data: 36 months
- Bankruptcies: nine years and nine months
- Judgments: six years and nine months
- Tax liens: six years and nine months
- Uniform Commercial Code filings: five years
- Collections: six years and nine months
- Bank, government and leasing data: 36 months
How do I correct business credit information on my report?
Why Personal Credit along with Business Credit Report?
Many small business owners use personal credit to run their business. However, doing so could put you at risk if your business is ever in trouble. Plus, many creditors today are moving away from relying on personal credit alone when judging a business’s financial health since personal credit is not considered an ideal predictor of business behavior. Furthermore, smart creditors are taking advantage of new blended commercial scoring tools that integrate both personal and business credit attributes to assess and predict small business risk. However, if you are a sole proprietor, your personal credit and your business credit are closely linked in the eyes of banks and other lenders. So it is important to take steps to protect both. You should monitor, evaluate and protect your credit standing just as you would protect any other business or personal asset.
How often is information on a credit report updated?
Most of the credit bureaus provides access to their business database in real time. Experian, for example, receives public record information from government and vendor sources on a daily, weekly, monthly or quarterly schedule. Once they receive public record updates from the government or vendor sources, turnaround time for formatting, cleansing and loading data is generally 48 to 72 hours. Turnaround time for bankruptcy reports being available online is typically within 24 hours of the original filing.
Can business credit reports save my business money?
By reviewing public records and other business information, companies save every year on the costs of acquiring new business and managing liability and potential fraud. Reviewing public records and other business information also establishes sound business relationships that can extend for years.
Business credit reports summarize critical information about a company so you can:
- Decide whether to do business with a company
- Quickly and intelligently assess the business risk of lower-balance transactions
- Avoid surprises from current customers when you review them for credit increases
- Quickly determine whether you can confidently make a credit decision concerning your new customer or if further investigation is needed
The report also helps you:
- Review your own company's credit file for completeness and accuracy
- Learn how your company compares with others in your industry
- Develop a strategy to improve your company's credit standing by examining the strengths and weaknesses of your file