There are two reasons business owners need to fully understand business credit and how to check the business credit of their business and other businesses as well. The first, and obvious, reason for knowing how to go about finding your own company’s credit rating is to be sure it is in good shape and will help you get the loans you need. The second reason your own business credit is important is that others will look at it as a testament to your responsibility and the stability of your company.
You need to know how to check business credit ratings to be sure other companies are financially stable and responsible too. The same reasons others check your company are important to you when considering doing business with another company or making major purchases from them.
Where to Check Your Business Credit
Any of the major business reporting agencies will give you a copy of your report. Unlike personal credit, it is not a law that a credit company must provide any free reports except in the case of turning down an application for credit. You will either have to pay for your reports, or belong to a credit management plan with them, or an outside credit company. The main credit reporting agencies for businesses are:
• Equifax Business
• Experian Business
• Dun & Bradstreet
Getting another Company’s Report
You will need the full name and address of the business you are interested in researching. Use one of the above agencies and fill out the request form on their website. If you are checking on a company’s credit history to do business with them, ask the owner for the companies EIN number or DUNS number for an easier search.
If they are not willing to give it to you, it may be a good idea to look elsewhere. In the case of business credit ratings, it is public record and all business owners should be ready to have outside people checking into it. When you check the business credit of your own company or someone else’s business rating, a score of 70 or higher is a very good credit history.
