Checklist to Better Understand Your Business Credit Reports

Business credit is the ability of a company to purchase something and pay later. A good business credit report can make it easier for your company to borrow money if it is needed. This document gives a snapshot of the financial health of a business.


This will include.

  • Financial background of the company
  • Payment History on Tradelines
  • Credit inquiry history
  • You can file any legal documents, including judgments, bankruptcies, and collections.

Each credit bureau report may look slightly different, but they all contain the exact same information. It’s important to understand your credit report as you go through the process of applying for a small-business loan. You should make sure that the report includes these items.

  1. Financial History Section

This section contains information on commercial banking, leasing, and insurance. This section shows your payment history to creditors, lenders and insurance.

This displays information like:

  • Date of opening the tradeline
  • The term
  • Original and current balances
  • Any account delinquencies
  • Business Loans
  • Insurance policies
  • Lines of Credit
  • Lease equipment
  1. Section of Collections Filings

This area contains any legal filings or reports of bankruptcies that your business has made. Here you will find tax liens, judgments and accounts in collection for at least 90 days.

This includes information such as:

  • Dates for opening and closing your collection files
  • Contact details of agencies
  • Your collection status
  • Amount disputed
  • The amount collected

If you have many court cases on your record, lenders are less likely give you a loan.

  1. Tradeline Experiences section

In the Tradeline Experience section, you can see your company’s payment history. The tradeline payment history shows your company’s payment records for the past three years. This section is often used to include payments made to vendors.

This section also includes some additional details:

  • When was your business first reported to a credit bureau?
  • Payment Terms
  • Credit line recently increased
  • Maximum credit limit
  • Payments made monthly, regardless of whether they are current or past due

You can also see how many times a tradeline has been past due for more than 30 days.

  1. Business profile section

This section, also known as the company profile or business profile, is usually the first thing to appear on a credit report for small businesses. This section contains the legal name, company address and information about its incorporation.

This includes data on:

  • Ownership subordinate information
  • The number of employees
  • Type of business
  • Years of business
  • SIC code (Standard Industrial Classification)
  • NAISC (North American Industry Classification System), code
  1. Section Scores of Business Credit

In a credit report for a business, a credit score is included just like it is in an individual credit report. Each credit reporting agency has its own range of credit scores. Each bureau should produce a number that is easily understood.

The report will include some information about the business, such as:

  • Credit risk for your company
  • Credit scores are calculated based on a number of factors
  • Your report will provide a prognosis for your future credit risk.

The credit reports and scores of businesses can be used to determine the financial health of a business. The primary goal of business owners should be to establish a record of paying all financial obligations on time. Building a good business credit score and report is essential.

Your business credit score can be affected by a number of factors.

  • What is your credit limit?
  • How long have you had credit?
  • What is the number of late payments on your credit report?

You can buy a credit report for your business to keep track of the credit standing of your firm. This is true regardless of the credit reporting agency that you choose.

Business Credit Reporting Agency

You can rely on many different business credit reporting agencies. Most often, all credit reports for companies contain the same data. Even when their processes for collecting and validating data are unique, they share key data elements.

Some of the most popular business credit reporting agencies are listed below.

Dun & Bradstreet

The credit report is the most commonly used. D&B assigns ratings to companies based on a variety of indices which represent the current and future risk they face.


It uses financial and business data to calculate the score. Experian’s Credit Ranking Intelliscore ranges from 1 to 100. 100 is the highest possible score.


Most commonly, it is used to finance small businesses through the SBA. It gathers data from all three credit bureaus to generate a score.


Your company’s financial prospects will increase the more you work to establish your business credit. Business credit reports are used by banks, suppliers, and lenders to assess a company’s financial worth. Make every effort to keep your debt under control and on top of your payments.

Paying your bills on time can become a priority. You can set up a payment reminder, create a budget or reduce certain purchases. Late payments will negatively impact your business’s credit score. It will also make it more difficult to attract future lenders, partners or investors.

Do not hesitate to ask for professional advice from a financial advisor. This is especially helpful when your business finds itself in debt.