PAYDEX® Score: This score is a dollar-weighted indicator of how promptly a company pays its bills. Scores range from 0 to 100, with higher scores indicating better payment performance.
2. Delinquency Score: This score predicts the likelihood of a business being 90 days or more delinquent on payments within the next 12 months.
3. Failure Score: This score predicts the likelihood of a business failing within the next 12 months.
4. D&B Rating: This rating provides an overall assessment of your business’s creditworthiness based on the information available in your credit report.
5. Financial Stress Score: This score assesses the likelihood of a business experiencing financial stress within the next 12 months.
Legal Events
This section of the report includes information on legal events such as bankruptcies, liens, judgments, and UCC filings. These events can have a significant impact on your business’s financial health and creditworthiness.
Legal events section of a D&B profile. (Source: Dun & Bradstreet)
Overall, a D&B credit report is a valuable tool for businesses looking to assess their own financial health or evaluate potential business partners. By understanding the key features and scores included in the report, businesses can make informed decisions about credit, payment terms, and overall financial risk.
Pros of a Dun & Bradstreet Credit Report:
1. Comprehensive Information: A D&B credit report provides a detailed overview of a company’s financial health, including payment history, ownership structure, legal events, special events, financials, federal information, and web & social presence.
2. Risk Assessment: The viability rating and various scores provided by Dun & Bradstreet help in assessing the risk associated with doing business with a particular company. This can be crucial in making informed decisions about partnerships, credit extensions, and other financial transactions.
3. Creditworthiness Demonstration: By having a D&B credit report, a company can showcase its creditworthiness to potential lenders, partners, or investors. This can help in securing favorable terms for loans, partnerships, or other business agreements.
Cons of a Dun & Bradstreet Credit Report:
1. Cost: Accessing a D&B credit report may come at a cost, especially for detailed reports with in-depth information. This can be a drawback for small businesses or startups with limited financial resources.
2. Potential Inaccuracy: While Dun & Bradstreet strives to provide accurate and up-to-date information, there is always a possibility of errors or outdated data in the credit report. It is important for businesses to regularly monitor and update their information to avoid any discrepancies.
3. Limited Coverage: The D&B credit report may not cover all aspects of a company’s financial profile, and there may be certain details or events that are not included in the report. It is essential for businesses to supplement this information with additional research and due diligence.
Overall, a Dun & Bradstreet credit report can be a valuable tool for businesses looking to assess their financial health, demonstrate creditworthiness, and make informed decisions about partnerships and financial transactions. By understanding the various components of the report and weighing the pros and cons, companies can effectively leverage this information to their advantage in the business world. As a business looking to establish a strong credit profile, leveraging a Dun & Bradstreet (D&B) credit report can be a valuable tool in obtaining better lending terms, payment schedules, and more. By building a solid credit history with D&B, you can increase your chances of securing financing opportunities, negotiating better terms with vendors, and ultimately improving your overall financial health.
To get started with a D&B report, you will first need to obtain a DUNS number. This unique identifier is used to access your company’s credit profile and can be obtained through the D&B website. Once you have your DUNS number, you can select the type of report you need and proceed with the purchase. D&B offers various report options, from free Credit Insights reports to more detailed and comprehensive reports at different price points.
While D&B is a trusted source for credit information, there are other alternatives available, such as Equifax, Experian, Transunion, and the FICO SBSS score. These credit bureaus offer similar metrics and insights into your business’s creditworthiness, providing you with additional options for monitoring and managing your credit profile.
When it comes to D&B credit scores, a PAYDEX score of 80 or above is typically considered favorable by lenders. This score, along with other factors, can influence your ability to secure financing and negotiate better terms with vendors. If you believe there may be errors on your D&B report, it’s important to correct them promptly to avoid any negative consequences.
In conclusion, leveraging your D&B credit report can help you build a strong credit profile, secure financing opportunities, and negotiate better terms with vendors. By utilizing this valuable tool, you can take control of your business’s financial health and position yourself for success in the future.