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Top 5 Elements of A Business Credit Report That You Should Know

4 min read
Business Credit Report

Would you like to expand your company base with trustable business partners? Are you afraid of losing your hard-earned dollars on unreliable organizations? Well, we can provide you with a solid solution that will minimize your company’s exposure to financial risk. You can order a comprehensive business credit report through leading credit report dealers that will help you gain a deeper insight into the present economic situation of your potential business partner. In addition to that, it will also let you know whether they will be in business 2 to 4 years from now or not. But have you ever thought about what information a business credit report holds or how to get business credit reports online?

 

Well, today, we have come up with a collection of information to inform you about five major components of a business credit report:

 

  1. Business profile 

These days scores of people search “how to get business credit reports online” in search engines in the quest to find free credit reports. But they don’t know that they can’t get more than one free business credit report every 12 months. On the other hand, if you buy business credit reports from trusted credit report sellers, there is no limit on the number of financial statements of prospective companies you can buy.

 

The most important information it includes is the business profile of your potential company. You will find necessary details like their business’s legal name, trade name, and company’s physical address in this field. Apart from this, you will find additional information like:

Business type

Incorporation details

Parent and subsidiary details

Years in operation

Number of employees

 

Just to let you know, most business profile sections also include financial data extracted from their company’s financial statement from the last three years.

 

  1. Payment history 

This credit report section shows your business partner’s payment history from the last two to three years. By looking at the given details, you can know how actively they have made payments to various vendors in the past years for the products or services they have bought from them.

 

That’s not all; you will also get to see the details of each payment, like sale date, amount, and reporting date. If they have made payments to vendors regularly and have single or no proof for delayed payments, you can trust them without a hitch and include them in your company database.

 

  1. SIC & NAICS industry codes 

Before proceeding further, the most crucial thing you need to know is what they stand for. So, for your information, we must tell you that SIC is short for Standard Industrial Classification, and NAICS is the abbreviation for North American Industry Classification System codes.

 

These codes represent the industry classification as each business’s credit risk is dependent on its industry. It means if your business partner’s company is in a lower-risk category, you can provide them desired credit without any hassle. But if their business falls in a higher-risk category, you must reconsider your decision. Let’s see what industries are the parts of the high-risk category:

 

Car sales

Real estate investment

Restaurant chain

Travel industry

And many more

 

Note that if you are looking for the answer to “how to get business credit reports online,” you must keep the information mentioned above in mind.

 

  1. Legal filings and bankruptcies 

Do you want to take a look at the liquidity and financial health of your prospective organization? Then it would help if you sift through the legal filings and bankruptcies section of their business credit report straight away.

 

This part of the credit report also shows any liens or UCC (Uniform Commercial Code) cases filed against their business in the past few years. Do you know what else you can see in business credit reports? The legal filings such as tax liens, bankruptcy judgments, and accounts of the possible professional partners.

 

  1. Commercial history 

Last but not least, this particular section of the business credit report shows the payment history of your prospective business partner to other creditors, lenders, and insurers. Not only that, but you can also see here financial activity, loan, type of credit, and balance information. Above all, the payments made for business loans, line of credit, insurance policy, and equipment leases are also part of the commercial history section.

 

Final note 

I hope you now know how vital business credit reports are to expand your company base. If you want to partner with a renowned business credit report seller to avail of long-term services, you must get in touch with them through virtual communication methods.

 

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