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Our Guide to Equifax Business Credit
December 11, 2020
Guide to Equifax Business Credit

Our Guide to Equifax Business Credit

As a small business owner, you have a personal credit score and a business credit score. Your business credit score shows how likely your business is to repay debt. Equifax is one credit bureau that measures your business credit score.

In this post, we’ll examine how Equifax business credit works, and how you can access your score.

What’s Included in Equifax Business Credit?

Your Equifax business credit report will contain various information related to your business and finances such as:

  • Company Details: Company details will include the name of your business as well as any addresses and phone numbers associated with it. Information on your management team and the number of employees you have may also be included.
  • Credit Data: Credit data consists of any loans, lines of credit, credit cards, or other credit accounts your business has opened.
  • Payment History: Payment history indicates how long it takes your business to repay its debts compared to others in your industry.
  • Public Record: Public record information discloses your business registration and any liens, judgments, or bankruptcies filed against you.

Equifax’s Business Credit Scoring System

There are a number of factors Equifax will consider when determining your business credit score including:

  • Payment Trends: The credit bureau will look for any outstanding balances you may have as well as your delinquencies over the previous two years. Ideally, they’ll find that your business repays vendors and creditors, on time, every time.
  • Credit History: Equifax will figure out how long you’ve had your longest financial account. An account that’s been open for a while is a positive as it indicates a longer credit history.
  • Public Record: Judgments against your business, liens, and bankruptcies are sure to have a negative affect on your Equifax business credit score.
  • Firmographics: Firmographics are essentially your business’s demographics and include its size, age, and industry. You’ll likely get rewarded if your business is older and larger than its competitors.

Three Types of Equifax Business Credit Scores 

Unlike other credit bureaus who only offer one score, Equifax will provide you with the following three scores:

  • Payment Index Score: Your payment history and how you pay your bills will dictate your payment index score. This will be a number between 1 and 100 with 1 being the worst and 100 being the best.
  • Credit Risk Score: Your credit risk score, which will be between 101 and 992 will help lenders and creditors understand how likely you are to pay them and how much credit they should grant you. Therefore, any score above 556 is considered good.
  • Failure Risk Score: Your failure risk score, which ranges between 1,000 and 1,610, consists of your company legal records, demographic data, and payment information. A lower score shows creditors and lenders that your business is at a higher risk of closing within the next 12 months.

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How to Access Your Equifax Credit Report

No matter what type of business you own, it’s important to obtain a copy of your Equifax business credit report. This way you can get a good idea of your organization’s financial health and how attractive it may be to potential lenders and vendors. Knowing your Equifax business credit can also help you merge with another business or buy out a competitor.

For a copy of your Equifax business credit report, visit the Equifax website. Once you’re there, you’ll be able to buy a single report for $99.95 or a package of five reports for $399.95. You may also invest in credit monitoring services for $16.95 per month.

How to Dispute Errors On Your Equifax Business Credit Report

If you notice any errors on your Equifax business credit report, it’s your responsibility to dispute them as soon as possible. Some examples of mistakes you may catch include:

  • The misspelling of your business’s name.
  • The same debt listed twice on your report.
  • The wrong amount on your balance or credit limit.
  • The incorrect status of your account.

You may also want to reach out to the lender or other organization that provided the incorrect information to Equifax. Under the Fair Credit Reporting Act, they must correct any inaccurate remarks on your report.

Fortunately, you won’t have to wait long to receive a resolution because Equifax strives to resolve all disputes within 30 days of submission. To avoid delays and expedite the process, make sure you’re clear about what item you’d like to dispute and offer facts that prove its an error.

Equifax Can Help Your Business Succeed

With a strong Equifax business credit score, you can steer your business toward unparalleled success. If you aren’t satisfied with your credit score, it’s in your best interest to work to improve it. To do so, pay all your creditors and vendors on time, reduce your credit utilization ratio, and dispute any inaccuracies.

With a good business credit score from Equifax, you’ll find it easier to get approved for financing with low interest rates and favorable terms. You’ll also be able to protect your personal finances and gain access to cash to grow your operations.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].