A company’s credit report offers the opportunity to evaluate the creditworthiness and the financial stability of a company. By running a check on the company’s credit, you can make more informed business decisions.

Before developing a business relationship with a company, run a check on the company’s credit to get better information about the risk involved in conducting business with the company.

To check a company’s credit, follow the following steps -

Acquiring Company Information

The first step to checking for a company’s credit is to acquire business information about the company. You have to find some basic information, such as the company’s name and location. An internet search or an offline search can provide this information for you.

The internet search is the fastest and most straightforward of the two. Check out the company’s website for information about the company, such as its location and business name. If you don’t know the company’s name, you can locate the company by searching the owner’s or CEO’s name.

If you do not know both the company’s name and its owner, you can search for the niche of the business with a location. This step might last longer because you have to scan through lots of names. The Dun & Bradstreet website is a global database that contains information about companies from around the world.

Running a Company’s Credit Check

1. Search for An Online Credit Agency

In many countries, you can check a company’s credit report with the aid of an online credit agency. An online credit agency is a data collection agency that gathers information about companies, including their credit reports.

You can find a reliable credit check agency by searching the internet for “business credit reports” with the country of the company.

On the internet, you will find many credit agencies. Narrow down your choice to only the well known and established ones like Dun & Bradstreet, Company Check, or Experian. These credit agencies charge for its company’s credit checks, worth every penny. They offer comprehensive and finely detailed reports.

2. Register with the Online Credit Check Agency

After selecting a reputable online credit check agency, the next step is to register or open an account with the agency. It is free to register with the credit agency. You may have to provide some or all the following as registration requirements:
  1. Your name or company name
  2. Email address
  3. Phone number
  4. Business Industry
  5. Account Password
  6. Credit Card Information
  7. User ID

3. Search for the company

After rounding up your registration and verifying your account with the link sent to your email address, the next step is the search for the company you want to check its credit report on the website database.

Most searches will provide options for you to narrow the search parameters for more productive search results. The search parameters include the region, country, state, or town of the company in addition to its company name.

You can choose to ignore these search parameters and type the company name into the search box. The result is that the search will return every company similar to the company name you inputted. It can run into hundreds of search results, which leads to more labor and confusion. Scrolling through many search results can be strenuous and tiring.

Carefully check the results of your company search, check to spot the company that matches both the name and location of the company you are seeking. Once you locate the company, click on it, and it will direct you to a new page.

On the new webpage, you will spot different credit report options for the company you are seeking. Free company credit checks are hard to come by, unlike personal credit checks. A few credit agencies, though, provides free company credit checks to get you to register with them. You will have to provide your email address and phone number to access the free report.

Completing the Transaction

Depending on the type of company credit information you want, the costs for the information varies. You can spend $20 for a simple, one-time company credit report and up to $1,500 annually for access to multiple searches all year long.

A simple, one-time company credit report contains an overview of the company’s credit profile and a credit ranking number. Other costlier credit reports provide the company’s credit risk ratings, more in-depth financial information, credit information about the owners, and lots more.

Here are some top company credit check agencies and what they charge for their services.

a). Dun & Bradstreet – It boasts of the largest database with over 70 million company credit listings. A single company credit report costs $61 per report, its Business Information Report™ Snapshot cost $139 per report, Business Information Report™ On-Demand cost $189 per report, and its Credit Reporter Plus costs $799 for five reports.


b). Equifax Small Business Enterprise – It is the best resource to check company credits for small businesses. Equifax has over 22 million small businesses on its database. A single report costs $39.99, while a multi-pack report (5 reports over a year) cost $399.95.

Once you pay for your selected company credit check report, the website will provide the option of viewing it online or downloading it.

Company’s Credit Report Information

The company’s credit information you can expect to get with a credit agency includes basic information about the company such as corporate headquarters, subsidiaries, brank locations, directors, etc.

You also get detailed information about the company’s account with financial institutions, credit cards, utilities, suppliers, and other creditors. The check can also reveal unfavorable records such as tax liens, bankruptcies, court judgments, and lawsuits.

Conclusion

Checking a company’s credit is made simple with a credit check agency. Type in the company name and narrow the search using search parameters such as location and business niche. Note that checking a company’s credit, especially a comprehensive report is not free.

The company’s credit check is important because it gives you full insight into the financial health and records of the company. With this information, you can make a good business choice.

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