When you own a business, it’s important to monitor your own credit profile, but it’s just as essential to know the credit history of other companies you’re considering working with. Dealing with late payments, invoice disputes, or debt collection is time-consuming and detrimental to your bottom line. Fortunately, a simple credit check can provide all of the information you need to protect your organization’s interests. This will tell you if a potential client, partner, or supplier is facing financial hardship, so you can determine how this might affect your business. Here’s what you need to know about obtaining another company’s credit report.

How to Request a Credit Report 

Although personal credit scores are protected by the Fair Credit Reporting Act, a business’s credit report can be pulled by anyone without getting permission from the company. To begin, you must first register with one or more of the major business credit reporting bureaus. A few of the more popular options include Dun & Bradstreet, Equifax^® Business, and Experian^™ Business. Each one has affordable memberships, and you can sign up to start conducting credit checks immediately. You can request a report online by submitting a form with the business’s identifying information. 

How to Interpret a Credit Score 

Once you receive the report, you will want to look for the company’s credit score. Business credit scores are rated from 1 to 100, with a higher value indicating a lower risk. Typically, a score of 70 and above means the company is responsible for paying their bills. Any business that has a score of 30 and below is in financial trouble and may even be in the process of filing bankruptcy. The report may also give details on any judgments, liens, or debt collection actions taken against the company. You can use this information to assess the likelihood of having to hire your own debt collection agency in the future. 

Growing a successful company requires taking a certain amount of precaution. If you have the misfortune of doing business with an organization that doesn’t pay their bills, the professionals at Joseph, Mann & Creed can help recover what you’re owed. For nearly two decades, they have been providing business owners with reliable debt collection services. They understand that any interruption in your cash flow can put your business at risk. To learn more about the effective strategies they use to resolve delinquent accounts, call their Twinsburg, OH, office at (216) 831-5626. You can also visit their website or LinkedIn page for more information about their business.