Business Credit Reports are considered an insightful, accurate, historical and enlightened information source for companies and individuals that are seeking to initiate a business credit relationship with other businesses.[citation needed]
There are many credit management companies that specialize in business credit reports. These credit management companies are in the business of gathering the most predictive information on individuals and companies beforehand in order to assure that a company that has an interest in providing credit to another company or individual will have less worries on whether or not they will get paid and will not have to concern themselves with the risk associated with not knowing the borrowers history. Other uses of this report is to assess risk in extending loans to businesses, insuring businesses, underwriting insurance risk, purchasing businesses, investing in businesses or even company directors.
Credit management companies that specialize in offering business credit reports typically provide the most up to date information about business credit that's available today, saving time, money and ensuring a completely sound and informed credit decision. This is in addition to companies who also provide consumer reports.[citation needed]
Some notable business credit reporting companies are Creditsafe Group, Equifax, and the largest being Dun & Bradstreet, and Experian.
In order to establish a business credit report, you must have an EIN number from the IRS and begin applying for business tradelines, through vendors. For new businesses, this can take some time. In order to be approved for funding, the business needs to have a minimum paydex score of 80+ to be able to qualify and ensure the best rates.
Source of article : Wikipedia
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