Credit Reporting Agencies

The 6 main business credit-reporting agencies. The 2 most used are D&B and Experian. Communicate with them by fax and email — avoid phone calls.

Dun & Bradstreet (D&B)

The world's largest business credit reporting agency, founded in NYC in 1841. Over 100 million businesses are registered with D&B.

DUNS Number

A unique 9-digit identification number used to track and rate your business credit profile. Free to obtain. The U.S. Government requires one before granting grants or contracts.

PAYDEX Score (0-100)

D&B's business equivalent of a FICO score. 80+ is good. Requires trade references reporting to D&B. It's a dollar-weighted average — higher-dollar trades matter more. Need 5 vendors reporting positive experiences for the highest score.

100Anticipate

90Discount

80Prompt

7015 days late

6022 days late

5030 days late

4060 days late

3090 days late

20120 days late

D&B Rating

Assessment of creditworthiness based on location, years in business, employee size, financial statements, and payment history. Highest ratings go to companies 5+ years old, $1M+ net worth, 50+ employees, based in same state as officers, with physical address and live operators.

5A$50M+ net worth

4A$10M-$49.9M

3A$1M-$9.9M

2A$750K-$999K

1A$500K-$749K

HHUp to $4,999

Financial Stress Score (1001-1875)

Predicts likelihood of business failure within 12 months. 1875 = lowest risk, 1001 = highest risk.

Commercial Credit Score (101-670)

Predicts likelihood of severely delinquent payment (90+ days past terms) in next 12 months. 670 = lowest risk. Risk doubles every 40 points.

Experian

Tracks information on 15M+ companies. Uses your business Tax ID (not a Duns number). Business credit score called an Intelliscore — ranges 0-100, 80+ is good. Requires 2-5 creditors reporting to receive a score.

Reports: Limited ($8), CreditScore ($19.95), Profile ($39.95), ProfilePlus ($44.95).

Equifax

Through an exclusive agreement with the Small Business Financial Exchange, Equifax provides banking and leasing information on small businesses. Members include Bank of America, Capital One, Wachovia, Wells Fargo, and others. Offers the Small Business Credit Risk Score.

Other Agencies

Client Checker

For freelancers, small businesses, and self-employed. Score called PayQuo (20-90). 90 = pays early/on terms, 20 = 120+ days late.

BusinessInsight / FDInsight

Part of Factual Data Corp. Must be listed with D&B, Equifax, or Experian to obtain a profile.

Business Credit USA

Division of InfoUSA Inc. Database of 14M+ U.S. businesses. Scoring based on demographics: employee size, revenue, years in business, industry type.

How to Improve Your Profile

Pay on time — the single most impactful factor. Pay within terms set by suppliers.
Ensure all trade experiences are represented — check your profile twice a year to make sure vendors are reporting.
Keep personal finances in good order — creditors may review personal credit for owners owning 10%+ of the business. Aim for 680+ FICO.
Keep debt financing down — maintain a modest debt-to-asset ratio of 60/40 or better.
Contribute to your own profile — communicate as much information as possible to D&B. Do business with companies that frequently report to D&B.

High-Risk / Red-Flagged Status

D&B has a high-risk status that destroys your ability to obtain credit. Easy triggers: paying a loan/lease 30 days after the due date, or giving contradicting/incorrect information to D&B. Unlike personal credit, there are no laws protecting businesses from credit bureaus. If red-flagged, it's often easier to start fresh with a new corporation.

Reflect

Which credit agency will you target first — D&B, Experian, or Equifax? What's your first step?