We're CRA s get your data business credit is credit obtained in a businesses name
its independent of the owners credit history and scores business credit reporting agencies rely on
objective data to calculate their scores objective and useful business credit data comes from a
variety of sources. A business credit profile is independent of a consumer credit profile
it relies on somewhat different data but it all points to risk. What is the risk of your company
defaulting on its payments? All of the credit reporting agencies have the same mission they
measure whether your business can pay its bills on time the differences are in the details some CRA's
weigh public records more heavily whereas others way payment history more heavily. Credit reporting
agencies want to know your business's experience in the public sphere this includes bankruptcies
liens and judgments. This information generally comes from court documents in the United States
pacer provides information on federal court cases see www.pacer.gov you can also find public record
information at BRB pub see www.brbpub.com, credit reporting agencies are looking for filing
dates whether a bankruptcy or the like has been resolved and closing dates they also want to see
the basics on court cases to determine if your company could be sued by another party at a later
date. IRS information comes in several forms, in general, this is tax lien filings they aren't connected
to courts instead, they have a filing location like a county the IRS also has information on whether
your company is a sole proprietorship, partnership, corporation etc., this gives information on the
makeup of your company credit reporting agencies like experience strongly suggest companies report
to them see www.experian.com/business - information/data-contribution.html' they
suggest creditors report because if borrowers know a company reports those borrowers might
pay to maintain better scores, it is a means of rewarding good credit to conscientious borrowers
who pay back on time and reporting alerts other creditors that a company has borrowed and
thereby might be about to overextend itself which means it might not be able to promptly pay its
obligations. Every time you fill out a credit application for your business, you are providing
data for credit reporting agencies this includes industry classification, amount of time in business
and the number of employees. The first time you self-report is when you apply for a Duns number you
provide information such as the company's physical location whether a company has a DBA
which stands for doing business as plus the site of your headquarters and any other company
locations. D&B creates the D&B rating the rating contains a financial strength indicator it is
calculated using either the net worth or issued capital of a company, if both figures are available
the net worth is always used D&B will show if a business is new or if they never got this
information it also adds a condition code or risk indicator this calculation measures the
amount of risk the creditor can expect by taking into account key items in a D
and B business information report which are used to predict the likelihood of a
business failure a company gets the lowest rating a 5 if no information is provided.
Credit reporting agencies receive payment data and other company details from lenders suppliers
and creditors where your company has accounts this is from vendors which report however
even vendors which do not report can provide data if you asked for a trade reference if you
asked for a trade reference, a trade reference is subjective the other information is all objective.
To recap credit reporting agencies work with objective information it is readily traceable
to government records or court records and other organizations the only subjective
information is trade references, contact us today to learn more about where CRAs get your data.