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Do Businesses Get a Free Annual Credit Report?
By now, you probably know you are entitled to one free look at your personalCREDIT REPORT each year. There are a number of websites and services that exist to help people review their consumer credit report. But, when it comes to getting aFREE BUSINESS CREDIT REPORT, not many options exist. It can be done though.

    Nav is the ONLY source for both personal and businessCREDIT SCORE access, with advice on how to build your business credit to get funding, and save money.Get Started For Free
Why Businesses Are Not Entitled to a Free Report
The Fair Credit Reporting Act is a federal law that stipulates how credit-reporting agencies handle individuals’ credit information to safeguard privacy and accuracy. This includes the following privileges:

Free access to your personal credit report once every 12 months
The right to dispute inaccuracies on your report using a formal process
Notification from creditors and employers of adverse actions taken based on your report
Though this law revolutionized credit reporting for individuals, it does not apply to businesses. Thus, business owners do not have access to a free business credit report by law.

Let’s cover a few ways you can gain access to your business credit report, so can ensure accuracy and know where your business stands. We’ll start by looking at the old-school, clunky way first.

Request a Credit Report After a Loan Denial
If you have applied for a business loan and been denied, you will receive a letter in the mail from the credit bureau the lender contacted when checking your company’s credit. You have the right to request a copy of your business credit report from this credit bureau by sending the letter back within 90 days of receipt along with a written request to see your free business credit report.

While this method does offer the opportunity to review your report for free, it won’t provide a complete picture, as it will only give you information from the credit bureau used by the lender, and there are three major bureaus (Dun & Bradstreet, Equifax and Experian) that lenders typically use.

Plus, by law lenders, vendors, and suppliers—anyone checking your company’sCREDIT REPORT—are not required to disclose they used it to evaluate your business. So, you may not even receive notification.

How to See Your Free Business Credit Report Right Now
I hate to get promotional, but this is where we come in. Nav is the only place offering free access to a summary of both business and personal credit reports in one spot. If any other companies were doing this, I’d include them here, but they don’t exist.

Within seconds of logging in to Nav, you’ll see personal and businessCREDIT REPORTS from three bureaus while taking all the legwork out of obtaining them. Nav also saves you the hassle of making a separate effort to check your personalCREDIT REPORT.

If you prefer to do things on your own, all three of the business credit bureaus will give you a full copy of your businessCREDIT REPORT for a fee. With Experian and Dun & Bradstreet, you visit their website and fill out a form (including payment information). With Equifax, you need to call a customer service line to order a copy of your business credit report.

Also note that your business credit score will likely differ between bureaus. They all use different models and may have different information on file. That’s why Nav gives access to both Experian and Dun & Bradstreet reports for free.













Business Credit Reports
Just as you’d view your personalCREDIT REPORT to check your financial history, the same information can be reviewed for your business. That’s because the minute you start a business, credit bureaus begin to develop a credit report on your company. They do this by scouring public records and other financial data.

Then, when you receive a business loan or line of credit — sometimes called trade credit — information about your payment history is compiled by one of a few businessCREDIT REPORTINGbureaus and providers, including Dun & Bradstreet, Experian, Equifax and FICO and turned into abusiness credit score.

 



    Nav is the ONLY source for both personal and business credit score access, with advice on how to build your business credit to get funding, and save money. Get Started For Free
The basics of business credit reports
Your businessCREDIT REPORT only includes debts that are under your company’s federal tax identification number – also known as an employer identification number. Any personal lines of credit that you have are not listed on the report. This is true even for business credit cards that are still listed in your name.

Information that is present on your tradeCREDIT REPORT is voluntarily sent to the reporting bureaus from the businesses that own the debt. This means some lines of credit may not be listed on the report.

How business credit is used
When you apply for future business credit, potential creditors and lenders will view the report to determine your company’s creditworthiness. They will use the information to evaluate how well your business repays its debts, and negative marks can cause you not toGET APPROVED, or lower the amount of credit they will extend, or limit the terms under which that credit will be given.

Besides lenders and creditors, several other parties may be interested in reviewing a businessCREDIT REPORT. Business insurance companies, for example, assess a business’s report as part of the underwriting process. Customers and other businesses that are being considered for a joint venture or partnership may also review your company’s credit history before working with your business.

    Nav connects you to the best financing offers based onYOUR CREDIT SCORES, which helps improve your approval chances. See your personalized financing offers now. Get Started For Free.
Why separating personal and business credit matters
Trade credit reporting is beneficial for helping you separate your business and personal finances, which is particularly advantageous in regard to credit. A businessCREDIT REPORT offers a clear view into the financial standing of your business, providing you with a clean report of the company’s credit inquiries, lines of credit and delinquencies. This streamlined information makes it easier for fraud monitoring and for lenders to accurately assess creditworthiness (see the importance of business credit monitoring).

Furthermore, separately listing business credit information protects your personal credit standing. Your company will typically have more annual inquiries and for larger lines of credit. With combined information, these inquiries could hurt your credit score, but a tradeCREDIT REPORT gives your business its own history to list your business’ credit activity.

Ready to see your business credit data and startBUILDING BETTER CREDIT? Check Your Credit Rating For Free (No Credit Card Required).




You are likely well aware how important it is to track your personal credit, but the same goes for your business. If you own a business, you need a good credit standing for both your personal and business to access capital. Therefore, the only true way to have all your bases covered is with businessCREDIT MONITORING.

Business credit can make or break a small business. It can mean the difference between being able to getting funding to grow and manage cash flow, or not having funds to survive through lean times. And when it comes to credit, the work never stops. It’s a fluid thing and can change rapidly.




    Nav is the ONLY source for both personal and business credit score access, with advice on how to build your business credit to get funding, and save money. Get Started For Free
What’s the Big Deal with Business Credit?
There are a number of things your business credit will influence. From day-to-day operations to meeting long-term goals, you will need to know your credit standing to adequately make decisions pertaining to your business. To do so, you should regularly check your businessCREDIT REPORT. Your report will impact:

 Any loans or business credit cards you have and what interest rate you are paying
 Insurance premiums for your business
 The price of your business supplies
Business Credit Monitoring Makes Sense
MonitoringYOUR CREDIT REPORT is the only way to achieve peace of mind when it comes to finances. It will alert you to any malicious activity that could lower your score and negatively impact your business. Whether it’s noticing a questionable item or stopping someone from stealing your identity, the implications to watching your credit are far reaching.

Creditors will also be looking at this report, and as a result, can terminate financing ifYOUR CREDIT SCORE falls to low. Monitoring keeps you in the know about your business’ financial state, and can be the first step in not only avoiding disaster, but also raising your credit score.

Ready to see your business credit data and startBUILDING BETTER CREDIT? Check Your Credit Rating For Free




FICO® SBSS℠ Score — The Small Business Credit Score Explained
Did you know you have a FICO small business credit score that banks use to help make their lending decisions?
Like your personalFICO CREDIT SCORE, the SBSS score can single-handedly make or break your chances of getting business financing!

Not only that, but the SBA (Small Business Administration) also uses the score to pre-screen loans it insures.

Nav is the ONLY credit source for the FICO SBSS score.
See your score now.
What is the FICO® SBSS℠ Score?
FICO® LiquidCredit® Small Business Scoring Service℠, (or FICO® SBSS℠ score) is one of the three main business credit scores. It’s theONE CREDIT SCORE all business owners should know, but many have never heard of it because, until now, it’s been hard to get your hands on it. Banks aren’t required to disclose that they use the FICO® SBSS℠ score and very little information exists about it online. More lenders are using it because it helps them make faster, more accurate lending decisions. This means they can make decisions in hours, not days.

In fact, the U.S. Small Business Administration (SBA) now uses the score to pre-screen it’s most popular 7(a) loans. If your score falls below their minimum threshold, you may not qualify for one of the most attractive—lowest interest rates—small business loans available. Starting at the beginning of 2014, all SBA 7(a)LOAN APPLICATIONS up to $350,000 are required to go through a business credit score pre-screen. To be clear, if you’re applying for an SBA loan, most likely it’s a 7(a).

Here’s how SBSS works:
SBSS scores can be used for term loans and lines of credit for amounts up to $1 million. If you’re applying for $1 million or less, chances are your lender will use SBSS to help make its decision.
Like personal credit scores, FICO SBSS rank-orders small businesses by their likelihood of making payments on time. TheFICO SCORE ranges from 0 to 300. The higher the score, the better.
The minimum score to pass the SBA’s pre-screen process is currently 140. But most lenders set their minimum score at 160.
The scoring is based upon personal and businessCREDIT history and other financial information. A strong history of businessCREDIT with timely payments to vendors and suppliers may help boost your SBSS score.
If you have derogatory or noCREDIT history, it can take months or even years of positive credit activity to move your SBSS score significantly higher. It’s vital toBUILD YOUR CREDIT and ensure it’s healthy before you need it.
Because businesses are not covered by FCRAPROTECTIONS, you can be denied business financing due to your SBSS score, and lenders are not required to notify you of the reason why.
How is the credit score calculated?
The short answer is the score is calculated by looking at personal and business credit history, as well as other business financial information, like: age of the business, number of employees, financial data, such as revenue and assets. It truly is a global view of a business’s overall financial health!

If you have no business credit history and limited time in business, the highest possible FICO SBSS score you can get is 140. But to do so, would require pristine personal credit.

Banks and lenders can set up the SBSS model in many different ways, putting more weight on certain information, and less on others.

For example, it can put more weight on your business credit profile or more on your personal. It’s also a very “smart”BUSINESS CREDIT SCORING model because it will automatically go from one business credit bureau to another, in whatever order of priority the lender prefers, until it’s able to generate a score.

So, if the lender prefers checking the Experian Intelliscore (business credit) as the default, the SBSS pulls in the Experian data set. If that report doesn’t offer enough information, it will automatically check another businessCREDIT SCORE, like the D&B PAYDEX score. It could also then move on to your Equifax business credit data. If there’s not enough business credit data available, it will just use the personal credit data to calculate the SBSS score, along with your business financials.

Who uses the FICO SBSS score?
SBSS scores can be used for term loans andLINES OF CREDIT for amounts up to $1 million. The FICO SBSS score is used by over 7,500 lenders nationwide to help them make lending decisions. Large banks include: KeyBank, Huntington National Bank, PNC, RBC, USBank, Zions Bank, HSBC, Santander Bank.

The SBA uses it to pre-screen. Cutoff is 140. Banks will use it to pre-screen theirLOAN APPLICANTSbut they usually set their cutoff higher, typically around 160. If your score falls below that, they will look at your business as too much of a risk. Plus, banks don’t want to waste their time filling out lengthy SBA loan applications if they are confident you’ll get denied because of a low FICO SBSS score.

How can I improve my FICO SBSS score?
You can take steps now to start improving your FICO SBSS score, you need to take care of your personal credit and start building business credit. Nav will help you take steps to improve both personal and businessCREDIT IN one spot.

Lastly, you may just need time: Time to show solid business financial history that makes your business look more like a solid bet.

Ready to see your business credit data and startBUILDING BETTER CREDIT? Check Your Credit Rating For Free NO CREDIT CARD Required).
Watch Nav’s CEO, Levi King, discuss SBSS on the Coleman Report.





The Dun & Bradstreet PAYDEX Score Explained
Just like a consumer’s creditworthiness hinges on aFICO SCORE, a business’s creditworthiness is determined by a scoring system as well. OneBUSINESS CREDIT SCORE that is typically used by lenders, vendors and suppliers to judge whether a business is qualified for different financing products is the PAYDEX score.

What is the D&B PAYDEX score?
PAYDEX is a business credit score that’s generated by Dun & Bradstreet (D&B). Their model analyzes a business’ payment performance (i.e., if it pays its bills on time) and gives it a numerical score from 1 to 100, with 100 signifying a perfect payment history.

A business’ D&B PAYDEX score is used much like an individual’s FICO score. It helps lenders, vendors and suppliers determine whether to approve you for financing and on what terms. Typically, the better the score, the more generous the terms extended. This can save your business money and give you more time to pay for supplies or services, leveling out cash flow.

In order to establish a PAYDEX score, you’ll need a Dun & Bradstreet number, or a DUNS number. Sign up for your free account with Nav to apply for a DUNS number today.

How is my PAYDEX score calculated?
To determine your business’ PAYDEX score, Dun & Bradstreet gathers data from the suppliers and vendors with which you do business over a rolling 12-month period. Each supplier/vendor is considered a single “payment experience.” Dun & Bradstreet analyzes the promptness of your payments against the terms of sale for each payment experience. So, the faster you pay your bills, the better your score.

PAYDEX scoring is dollar-weighted, which means that each payment experience is weighted in terms of the number of transactions and the overall dollar value of those transactions. That means your transactions with your IT vendor, with whom you spend thousands of dollars monthly, comprise a greater percentage of your D&B PAYDEX score than your transactions with the carpet cleaner who comes out to steam your rugs annually for a few hundred dollars, for example.

It’s important to note that a Dun & Bradstreet PAYDEX score of 100 does not indicate that a business has made on time payments — in fact, it indicates that a business has consistently paid suppliers 30 days in advance. Here’s a breakdown of what your Dun and Bradstreet number means:

Paydex Score:    Explanation:
100    Payment comes 30 days sooner than terms
90    Payment comes 20 days sooner than terms
80    Payment comes on terms
70    Payment comes 15 days beyond terms
60    Payment comes 22 days beyond terms
50    Payment comes 30 days beyond terms
40    Payment comes 60 days beyond terms
30    Payment comes 90 days beyond terms
20    Payment comes 120 days beyond terms
1 – 19    Payment comes over 120 days beyond terms
How is my PAYDEX score used?
PAYDEX is primarily used by vendors and suppliers to judge your business when determining what terms to extend on trade credit (e.g., net 30, net 60, etc.) This is important because having more time to pay your bills can help you better manage cash flow.

Lenders and creditors can also consider your PAYDEX score before extendingLINES OF CREDIT or loans to your business. You should aim to maintain a PAYDEX score of 75 or higher to ensure qualification for these types of financing.

How can I improve my D&B PAYDEX score?
Since your PAYDEX score is based entirely on the promptness of your payments to vendors and suppliers, the only way to improve it is to make sure you are paying on time. Remember: paying on time will only earn you a score of 80. For a perfect PAYDEX score of 100, you need to pay early.

You should also make sure you open at least fourOPEN TRADE ACCOUNTS. That’s the minimum amount D&B requires to generate a Paydex score. Having no PAYDEX score is just as bad as having a low one.

Want to see your PAYDEX score and start improving it? Nav lets you check your Dun & Bradstreet PAYDEX rating online, for free NO CREDIT CARD required). You’ll also get tips and insights to make your score stronger, so you can negotiate better vendor terms, save money and more easily manage cash flow.NO CREDIT CARD Required).



Business Credit Scores
business credit scores
Strong businessCREDIT SCORES are the key to getting your company approved for trade credit and financing. Every business has credit scores, as well asCREDIT REPORTS. In the same manner that your personal scores serves as financial ratings, your business credit scores rank the creditworthiness​ of your business.

Several factors go into the calculation of these figures, which can range from 0 to 100, with scores of 75 or more indicating excellent credit. Credit scores are calculated by reporting agencies such as Dun & Bradstreet and Experian.

Factors that determine business credit scores
Your business’s credit scores are calculated from various traits about your company and its financial history. Here are some of the variables:

CREDIT UTILIZATIONratio
Payment history
Length of credit history
Outstanding debts
PUBLIC RECORDS such as bankruptcies, liens and judgments
Company size
Industry risk
Notice that while most of the factors are similar to those used to calculate your personalCREDIT SCORES, others are unique toBUSINESS CREDIT SCORES.

    Nav is the ONLY source for both personal and businessCREDIT score access, with advice on how toBUILD YOUR BUSINESS CREDIT to get funding, and save money. Get Started For Free

The different business credit scores
Each bureau can have different information on file for the same person or business, and wind up producing a different score. That’s why you’ve probably noticed your score vary from bureau to bureau. Let’s take a look at 3 of the most common business credit scores:

The Dun & Bradstreet PAYDEX
According to D&B, the PAYDEX is a unique, dollar weighted indicator of a business’s payment performance based on the total number of payment experiences in Dun & Bradstreet’s file. The Dun & Bradstreet PAYDEX ranges from 1 to 100, with higher scores indicating better payment performance. PAYDEX is primarily used by vendors and suppliers to judge your business when determining what terms to extend on trade credit (e.g., net 30, net 60, etc.) Typically, the better the score, the more generous the terms extended. This is important because having more time to pay your bills can help you better manage cash flow.

Paydex Range:    Paydex Risk Interpretation:
80 – 100    LOW risk of late payment
(averages prompt to 30 days within terms)
50 – 79    MEDIUM risk of late payment
(averages 30 or less beyond terms)
0 – 49    HIGH risk of late payment
(averages 30 to 120 days beyond terms)
 

Paydex Score:    Explanation:
100    Payment comes 30 days sooner than terms
90    Payment comes 20 days sooner than terms
80    Payment comes on terms
70    Payment comes 15 days beyond terms
60    Payment comes 22 days beyond terms
50    Payment comes 30 days beyond terms
40    Payment comes 60 days beyond terms
30    Payment comes 90 days beyond terms
20    Payment comes 120 days beyond terms
1 – 19    Payment comes over 120 days beyond terms
Intelliscore PlusSM from Experian
According to Experian, Intelliscore Plus℠ is a statistically basedCREDIT-risk score that can combine business and proprietor credit data to predict the likelihood of serious delinquency in the next 12 months. Score range from 1 to 100, where lower scores (Score Range below) indicate higher risk. Risk is very low in the first two risk classes, risk class 3 is average, and classes 4 and 5 present above-average risk levels. The Intelliscore PlusSM is regarded in the credit industry as quite predictive and economical. It incorporates statistical modeling using over 800 commercial and owner variables – including tradeline and collection information, recentCREDIT INQUIRIES, public filings, new account activity, key financial ratios and other performance indicators.

Score Range    Risk Class    Risk Description
76 – 100    1    Low
51 – 75    2    Low – Medium
26 – 50    3    Medium
11 – 25    4    High – Medium
1 – 10    5    High
FICO® LiquidCredit® Small Business Scoring Service℠
FICO’s Small Business Scoring Service (SBSS) rank-orders applicants by their likelihood of making payments on time. The score ranges from 0 to 300. The higher the score, the better. The scoring is based upon personal and businessCREDIT history and other financial information. A strong history of business credit with timely payments to vendors and suppliers may help boost your SBSS score. TheFICO SBSS score will be used for term loans,LINES OF CREDIT, and commercial loans up to $350,000 from the Small Business Administration (SBA). The minimum score to pass the SBA’s pre-screen process is currently 140.

How business credit scores are used
Lenders and other creditors need a means of determining how well your business repays debts before they will approve you for financing. This is where businessCREDIT SCORES come in. Higher scores indicate to creditors that your business is more trustworthy, thereby improving the odds that it can obtain financing. Lenders can check your company’s business credit reports to get more detailed information about your business’s financial history, and business credit scores serves as shorthand evaluations. The rating can also let you access more credit than you could receive whenAPPLYING FOR FINANCING with just your personal scores.

The importance of checking your business credit scores
As a business owner, you should review your company’s financial information on a regular basis, including business credit scores. Your scores are fluid and can change over time. That’s why creditors tend to assess your creditworthiness on a continual basis. If you notice your trade credit scores are low, there could be an error in theCREDIT REPORTS that caused an inaccurate calculation. It is also possible that your business does not have sufficient credit history to warrant higher scores. If you do find an error, contacting the credit agency that generated the score is key to getting a correction. If there aren’t any errors, you can still improve your business’s credit scores by making on-time payments and lowering the company’s credit utilization ratio, among other options, but it will take some time.

Whether you’ve just started a business or been in the game for years, building a strong credit profile is essential to stay competitive. That’s why we’ve got three tools that help you build businessCREDIT THAT rocks! Get Started For Free NO CREDIT CARD Required).

How can I improve my business scores?
No doubt, understanding how and when businessCREDIT SCORES are used can be confusing. Luckily, keeping your scores strong is actually simple. It’s a lot like taking care of your personal credit:

Pay your business bills on-time or before they’re due.
Open multiple credit accounts (business credit cards, trade lines,LOANS).
Keep yourCREDIT UTILIZATION around 25% (don’t max out your credit lines).
Doing the right things toBUILD YOUR BUSINESS CREDIT profile is one of the most important items you can take as small business owner. Doing so opens up financing opportunities and business relationships that make it hell of a lot easier for you to run and grow a business.

Ready to see your business credit data and startBUILDING BETTER CREDIT? Check Your Credit Rating For Free NO CREDIT CARD Required).