Equifax Small Business Review – Credit Report

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Having as many tools as possible is never an exaggeration when you need to make decisions, especially when it comes to your business because the decision you make will affect your family and employees for better or worse.

Therefore, it is important that you know when it is time to take out a loan, whether it is convenient to merge with another company, or simply when to apply for a business loan.

Even if you have a small business, you can enjoy a valuable tool: a business credit report for small businesses. And Equifax is one of the largest rating agencies for businesses, and its report offers valuable information that will be useful to you in a variety of ways.

How to get Equifax services

First, you must register a business user on Equifax, this is because business credit reports are different depending on the agency you go to.

Therefore, you need your company to enter the internal database. This means that you will have to provide contact information and registration of your small or large company, among other things.

Once you are a member you can opt for a single commercial credit report paying $99.95, or you also have the option of a package of multiple commercial credit reports (5 for the price of 4) in exchange for $399.95.

It’s worth mentioning that this is the most expensive service of its kind, but because of its level of detail, it helps to attract better loans and investors, as well as to better understand how your business works.

The characteristics of your report

Among the information you’ll have access to, whether you need to evaluate how you do things, or whether you’re thinking of hiring a new provider, is listed:

Company information:

  • Includes trade name, telephone numbers, addresses, alternative trade names (DBA), Standard Industrial Classification (SIC) code, and the names of owner and guarantor.
  • Also information such as the number of employees and a corporate family tree.

Credit data:

  • With commercial loans or lines of credit from banks or credit unions are part of the credit data.
  • This section also includes other types of credit agreements, such as equipment rentals, commercial credit cards, and other credit accounts.

Public Record:

  • You’ll find the registration information for your business or the one you’re analyzing, as well as liens, judgments, Uniform Commercial Code filings (UCC filings) and bankruptcies reported against the business.

Payment History:

  • Payment history shows how many days you normally take to repay your creditors.
  • However, the time you take to pay your company’s debts is checked against the industry averages you belong to in order to determine if you are on average.

Financial Information:

  • Other information of interest reflected here is your interaction with bank houses, so bank balances returned checks, assets, real estate, and inventory and sales will appear in the report.

Highlights

Highlights among its characteristics the following scores:

Payment Index Score:

This is the typical credit score. It is established in a number between 1 and 100, where 1 is the worst score and 100 the best possible score in this line. It is based on the company’s payment history.

  • Therefore, who pays his bills on time will have a score between 90 and 100.
  • Invoices delayed by 1 to 30 days implies a score between 80 and 89
  • 31 to 69 days means that the score will go down between 60 and 79
  • When you have payments between 61 to 90 days late your score will be between 40 and 59
  • A score between 20 and 39 means delays between 91 and 120
  • Finally, any time more than the above means a score between 1 and 19.

Credit Risk Score:

Ranks from 101 to 992, the higher the score the lower the risk. Helps lenders know if the potential borrower repays on time. Getting more than 556 is positive.

Failure Risk Score: Equifax uses a line between 1000 and 1610 to indicate whether the company is at risk of closing its doors or not. The lower score indicates that there is a greater risk that the company will cease operations in the next 12 months.

To determine this score, the agency uses business demographics, credit and payment information, and legal records of the company.

Conclusion

Before signing a contract with a new business partner, it’s a good idea to review the credit history of the company in question, as well as its financial health.

It’s also a good idea to know that information about your own company, for which Equifax is a great partner at your disposal. Give them a try!

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