Experian business credit reports provide both the Intelliscore Plus and Financial Stability Risk rating. Additionally, the Experian Business Credit Report includes information on balances, days paid beyond terms, and financial information about trade payments.
Why is an Experian Business Credit Report important?
Having a good Experian Business Credit Report and score are essential for any business looking to get financing, make investments, or seeking out partnerships. If the Experian Business Credit Report demonstrates a business is financially stable, and reliable, the business can get more favorable terms and rates.
What data is provided in an Experian business credit report, other than business credit scores?
- Business background information, including ownership, parent companies or subsidiaries
- Company financial information, which helps determine the credit risk of businesses
- Credit score and risk factors, including a company’s ability to pay, which helps lenders adjust terms and rates
- Banking, trade, and collection history, including a business’s payment history
- Liens, judgements, and bankruptcies, which can warn lenders of risky transactions
- Uniform commercial code filings, positioning you relative to other creditors
What scores are reported on an Experian Business Credit Report?
Experian business credit reports include the following scores:
- Experian Business Credit Score: Experian’s Business Credit Score ranges from 1 to 100, with the lowest score reflecting the highest risk. The score is based on a number of factors contained in Experian’s business credit report such as outstanding balances, payment habits, credit utilization, etc. The objective of the Business Credit Score is to predict payment behavior. High Risk means that there is a significant probability of delinquent payment. Low Risk means that there is a good probability of on-time payment.
- Financial Stability Risk Rating: The Financial Stability Risk Rating is a score ranging from 1 to 5, with 1 representing the lowest risk borrower. This score is used to predict the likelihood that the business will experience financial distress within the next 12 months.
- Predicted Days Beyond Terms (DBT): Experian uses industry trends, public records, collection accounts, number of inquiries and other factors to forecast DBT for 60 days into the future, they use color-coding:
- Payment Trend Summary: Experian Business Credit Reports provide monthly and quarterly trendline graphs to illustrate payment history (percentage of times paid 30, 60, 90, or >90 DBT).
How do I repair my Experian business credit report?
The best way to repair your Experian business credit report is to work with a business credit repair specialist. Repairing your Experian business credit profile on your own can be time-consuming, and could potentially do more harm than good.