The largest business credit bureaus have dominated the industry for decades. Dun & Bradstreet, Experian, and Equifax continue to be the most widely used and recognized business credit agencies, but that doesn’t mean they are the only ones that matter. There are a handful of ‘other’ business bureaus that gather data on businesses across the country. Each uses a proprietary method that is picking up speed in dependability and affordability compared to the ‘top 3’ agencies.
A 20-year-old agency, they offer very concise business credit reports that were created in a user-friendly way. By making their business credit reports easier to understand, they’re making it easier for creditors to make educated decisions.
Ansonia credit reports include basic information on the company along with data on their payment experiences. They offer two scores, the credit rating and credit risk score. The credit rating offers the businesses average purchases per month and approximate days-to-pay. The credit risk score ranges from 0 – 100 with a score range of 70 – 95 reflecting a low risk borrower.
The transportation and trucking industry has very high barriers to entry due to how costly it is to remain front-and-center. Most trucking companies rely on credit to fund operations, purchase a fleet, and/or factor invoices. TransCredit offers credit reports that are specific to this industry.
Their Transportation Credit Score™ ranges from 0 to 100, a score of 0 means that the company does not have enough information to generate a score. A low risk borrower would have a score of 90 or above. TransCredit also lists the Overall Days to Pay™ which is the average number of days it took the company to pay their invoices over the last 6 months.
Paynet is a business credit reporting agency with a database containing over 22 million contracts from small business loans, leases, and lines of credit.
PayNet MasterScore® v2 – This lending score ranges from 550-740 with the higher score reflecting a lower risk borrower. Lenders will use this score to predict the risk potential of borrowers. They use 587 variables and 135 unique variables in order to compute this score.
There are a variety of factors that can impact this score:
- Payment activity – Are you paying on time?
- Consistency of credit quality patterns.
- History of delinquencies.
- Derogatory public records.
- No borrowing history.
- Size of the business.
- Current borrowed assets not being paid.
- Higher risk industry, State, and/or economic conditions.
Construction & Transportation Equipment Credit Score – This is a score specific to lenders in the construction and/or transportation lending sphere.
Credit history report – PayNet credit history report contains public record information on the company and detailed payment data on past and present payment experiences. The reports also offer a comparative analysis of historical payment data, in other words, they will compare your payment history with other similar businesses. Lenders will use this information and the MasterScore® to determine whether a borrower is worth the risk.
Established about 20 years ago as a transportation industry credit bureau, they have since expanded and now serve a wide variety of industries. Their reports offer 5 business credit scores/indexes:
The Cortera Score – This is an overall score of the businesses credit worthiness, it ranges from 100 to 900, with the higher the score the lower risk of paying in a severely delinquent manner.
When calculating this score, Cortera generates scores for payment forecasts, most recent payment habits, industry benchmarking, and spending data to compute the company’s overall Cortera score.
This business credit reporting agency was predominately in the United Kingdom up until 5 years ago when they branched out into the United States.
They offer comprehensive business credit reports.
A Risk Rating which ranges from 1 to 100 with a score of 71 – 100 representing very low risk, this score predicts the likelihood that a company will become severally delinquent in their payment habits.
In addition, their reports include – Average days beyond terms, a recommended credit limit, payment trends, inquiry trends, average business spend, and any tax liens and judgments filed in the last 6 years 9 months plus any bankruptcies filed in the last 9 years 9 months.
This business credit agency operates in the U.S. and Canada, they report information on approximately 15.5 million businesses. Their reports encompass financial, reputation, and public record information on each business in their database. All this data is used to generate their business credit score which ranges from 1 – 100, the higher the better, anything less than 70 means they do not have enough data to calculate a score. Credit.net will also include a recommended credit limit for the business.
Be aware of your business credit
In total that makes for 9 business credit bureaus all with their own algorithm and reporting policies. Being knowledgeable of their existence and understanding that each bureau has their own information sources and may report different/conflicting information, is important for your company’s financial future.