Business Credit Reports

What is a Business Credit Report?

A Business Credit Report is an analysis of critical company information that provides insights into the likelihood of a company’s ability to meet its financial obligations within agreed upon terms and the likelihood of it remaining solvent for the next 12 months.

The Information Used to Create a Business Credit Report

There are many types of information used to create a business credit report. Here are a list of the major ones. 

  • Local, state, and federal business registration data
  • Licensing information
  • Business location
  • Industry information
  • Payment history
  • Legal filings
  • Financial reports
  • Trade lines and other trade reporting
  • Known outstanding debts

Depending on the business, the industry, and the legal structure of the company, more information can and will be used to compile the most accurate picture possible of the company. 

Key Areas of a Business Credit Report

Company Information
  • Legal Name
  • Address
  • General Contact Information
  • Industry Code
Legal Structure & Linkages
  • Legal corporate structure
  • Links to other companies 
  • Parent company or branch locations
Credit Risk Score
The credit risk score is determined through a proprietary analysis of all of the pertinent company information, financial data, industry information, payment history, and other important data points.
Suggested Credit Limit
The suggested credit limit is a conservative estimate of the amount of credit that could be extended to the company, by each of its creditors, with a high likelihood of repayment within the agreed upon terms.
Days Beyond Term (DBT)

Days Beyond Term (DBT) is a description of the dollar weighted average of the time at which a company repays its debts based upon the agreed upon terms.

In its simplest form this means that if a company has 60 day terms and pays their outstanding balance in 63 days they would have a DBT of 3. 

Trade Payment Data TPD

Trade Payment Data (TPD) or trade lines, are what other companies report about the amount of credit extended and the repayment rates of a particular business. This data is critical in determining the financial risk and credit worthiness of a company.  

All types of businesses submit their TPD to make this system work more effectively and efficiently, and we make it easy and hassle free to join this community. 

Other Areas of a Business Credit Report

Financial Statements

For public companies financial statements are available for view. These can be accessed within the credit report and can help make a more in depth decision regarding the financial risk and credit worthiness of a particular company. 

International Information

If a company is international, there will be information available on their other locations and linked companies in other countries directly within the credit report. It does not matter if the company owns, or is owned by, or is in some other way legally affiliated with an international company. The linkage will be shown and the international score as well as other information will be available. 

Principal Information

Principal information provides clarity on the ownership structure and character of a particular business. This allows companies to make decisions that help avoid conflicts of interest, compliance issues and much more. 

Some companies even decide to run a Business Principal Report to get more in-depth information on the owners of a company they want to do business with. 

Legal Filings

Legal Filings is an area of the business credit report that allows a company to see the leins, judgements, and other derogatory legal filings that are active or recently decided for a particular business. These are available directly within the business credit report and can be expanded for further information.