Equifax generates commercial credit reports on businesses of all sizes. Equifax only reports information gathered from their ‘qualified’ vendors. Businesses cannot call or request for Equifax to update their company information.
What is included in an Equifax business credit report?
Equifax uses several factors to put together their comprehensive commercial credit report, which is made up of three scores. Equifax business credit reports also include general business demographics, public records, trade payment history, financial payment history, corporate family trees, and any owners or guarantors associated with the reported business.
What scores are reported on an Equifax business credit report?
Each Equifax business credit report includes:
- Credit Risk Score: The Equifax Business Credit Risk Score is based on a combination of reported financial transactions, including banking, leases, trade accounts, public records, and business demographics. The Equifax Credit Risk Score ranges from 101 to 992, the higher the better, a score of 0 means there is a bankruptcy on file. Equifax provides explanations of why a particular business earned a score based on a series of reason codes provided in the report.
- Business Failure Score: Equifax’s Business Failure Score ranges from 1,000 to 1,880, with the higher score representing the lower predicted risk of filing for formal or informal bankruptcy over the next 12 months
- Payment Index Value: The Equifax Payment Index score ranges from 0 to 100, where 90+ means the business “Paid as Agreed”. The Payment Index Value score is calculated using the total number of financial and trade credit payment experiences in the Equifax Commercial Database.
How the Equifax score can help drive better business decisions
Having a good Equifax score is a great way to signal that your business is in good financial shape. To improve the score, businesses should aim to pay all bills, creditors, and vendors on time. Reducing the business’s credit utilization will also positively impact the credit risk score.
How do I repair my Equifax Credit Report?
The best way to repair your Equifax business credit report is to work with a business credit repair specialist. Repairing your Equifax business credit profile on your own can be time-consuming, and could potentially do more harm than good.