Dun & Bradstreet Business Credit Reports: What Business Owners Need to Know
To enhance your chances of obtaining credit, attracting business partners, and building your company’s creditworthiness, it’s crucial to have a strong credit report. Reliable credit reporting agencies like Experian, Equifax, and Dun & Bradstreet Inc. (D&B) are often sought after by lenders, vendors, and suppliers. Your business’s creditworthiness is assessed by these agencies, and a solid credit report can instill trust in those who are interested in your company.
By establishing and maintaining a D&B report, you can increase your business’s credibility and open doors to a variety of opportunities. Obtaining loans, securing investments, and establishing partnerships are all made easier with a robust credit report. Here’s what you need to know to ensure your D&B report is working for you.
Company Fast Facts:
- Name: Dun & Bradstreet Holdings Inc. (D&B)
- Founded: 1841 in New York
- Headquarters: 101 John F Kennedy Pkwy, Short Hills, NJ
- Number of Employees: 6,296
- Products and Services: Data and analytics solutions to inform commercial credit decisions. Also offers marketing solutions, master data management, APIs, events, webinars, and more.
- Public or private: Publicly traded on the New York Stock Exchange (NYSE)
- Ticker symbol: DNB
What is a Dun & Bradstreet Business Credit Score?
For businesses looking to manage their risk, Dun & Bradstreet offers a range of commercial data, analytics, and insights. Its business credit reports are a cornerstone of its services, comprising a collection of scores that communicate various risks associated with a company. These scores cover a range of areas, including the likelihood of a business going out of operation in the next year. There are five main types of D&B credit scores, each providing valuable insights for managing risk. Keep reading to learn more about them.
Dun and Bradstreet Credit Score Factors
When it comes to evaluating businesses, major credit agencies provide various scores. Dun & Bradstreet is no exception, offering a range of scores on its credit reports. These scores are determined using several business records, and they help to assess different aspects of a company’s risk. Below are the primary D&B credit scores along with the key business records used to calculate them. Keep reading to learn more.
D&B PAYDEX Score
The D&B Paydex Score is a critical credit score that evaluates how well a business has managed its bill payments over the past year. Ranging from 0 to 100, with 100 being the highest possible score, it is determined using various company financial data, including the tradeline payment history. Additionally, the score is calculated based on a weighted average, which means that larger invoices will have a more significant impact on the overall score than smaller ones.
Here’s an expert tip: To obtain a Paydex score, your business must have at least three tradelines from two or more different vendors.
D&B Delinquency Score
The D&B Delinquency Score is a credit rating that measures the likelihood of your company paying bills 90 days late or more. On a scale of 1 to 100, with 100 being the highest possible score, this rating takes into account various factors that could negatively impact your score. These factors include late payments, liens, operating in high-risk industries, or limited time under the company’s current management.
It’s essential to maintain a good Delinquency Score as it can affect your business’s creditworthiness and ability to obtain financing. By avoiding late payments and other risk factors, you can ensure a higher score and a better chance of securing credit.
D&B Failure Score
Dun & Bradstreet’s Failure Score is an essential metric for predicting the probability of a business failing within the next 12 months. Failing can take on several forms, including:
- Seeking legal protection from creditors
- Ceasing business operations without settling outstanding debts
- Voluntarily withdrawing from business operations while still having unpaid obligations
- Entering into receivership or reorganization
The Failure Score provided by Dun & Bradstreet ranges from 1 to 100, with 100 being the highest possible score. A lower score indicates a higher likelihood of business failure in the next 12 months. Several factors can negatively impact your Failure Score, including late payments, a high number of credit inquiries, new UCC filings, or a large proportion of past due balances compared to the total amount owed.
Maintaining a good Failure Score is crucial to establishing your business’s creditworthiness and obtaining financing. By managing your financial records and avoiding risk factors, you can improve your score and increase your chances of securing credit in the future.
D&B Rating Score
Dun & Bradstreet’s Rating Score evaluates your company’s financial stability and creditworthiness by assessing various factors. This score takes into account the length of time your business has been operational, payment history, financial data, and other relevant metrics.
A good Rating Score is essential for obtaining financing, partnerships, and other business opportunities. By maintaining a strong financial record and managing your business’s risk factors, you can improve your rating score and establish your company’s credibility in the market.
D&B Viability Rating
Dun & Bradstreet’s Viability Score is an important metric that forecasts the likelihood of a business going out of business within the next year. This score is a component of the D&B Viability Rating Summary, which also includes details about the company’s years in business, portfolio comparison, and the depth of data available.
Your D&B credit report will typically feature the Viability Score alongside the other main ratings, providing a comprehensive overview of your business’s creditworthiness. Understanding the information contained in your credit report is crucial for maintaining a strong financial profile and positioning your business for success. Check out a sample D&B credit report to learn more.
How to See if You Have a Dun and Bradstreet Business Credit Report
Discovering whether your business has a D&B report is easy with the unique D-U-N-S Number system that Dun & Bradstreet uses to create company files. To check if a D-U-N-S Number has already been assigned to your business, head to the D&B website and follow a few simple steps. Visit the D-U-N-S Number page, enter your company name, address, and phone number in the search field, and click on “Search.” If a file for your business exists, it will be listed in the search results, allowing you to access the report details from there.
How to Get a D-U-N-S Number and Business Credit Report
If your company doesn’t have a D-U-N-S Number yet, you can easily request one by following these simple steps. Start by performing a search on the D&B website, and if you don’t have a record file, click on “Get a New D-U-N-S Number.” Fill in the required information, such as your company’s legal name, address, and phone number. Once you’ve submitted your request, D&B will create a unique identifier for your business, which can be used to establish your creditworthiness and make it easier for potential partners and lenders to find you.
Choose a Plan: Get started with building your business credit file with D&B for free. Sign up for their CreditSignal plan and receive alerts for any changes in your D&B scores and ratings at no cost. Upgrade to a paid plan for additional features and services to enhance your credit profile.
Register: Ready to register for a D&B account? Simply provide your first and last name, as well as your email address. Next, review and accept the terms of use and privacy policy. After verifying your email address, create a password to complete the registration process.
Provide Your Information: Next, enter the details about your company including the:
- Legal business name
- Year the business started
- Employee count
- Business description
- Website
- Phone number
- Business structure
- Principal name and title
- Corporation ownership details
- Business location(s)
- Social profiles
- Two business documents that verify the name and address
Wait For Your D-U-N-S Number: Ready to request your D-U-N-S number and start building your business credit file with D&B? It’s easy – simply provide your name, and email address, and agree to the terms of use and privacy policy to register. Once you click “submit,” it can take up to 30 business days for your D-U-N-S request to be processed. You’ll receive an email once your number has been assigned, which will include instructions for logging into the D&B website to view your D-U-N-S number and monitor your credit file.
What is a Good Dun and Bradstreet Business Credit Score?
Trying to determine your Dun & Bradstreet business credit score can be confusing due to the various scoring models they use. Nonetheless, many of their scores follow a 0 to 100 range, where the highest score is 100, indicating excellent creditworthiness.
What is D&B ESG?
Dun & Bradstreet provides Environmental, Social, and Governance (ESG) Intelligence insights, which allow businesses to evaluate third-party ratings based on ethics and sustainability. As companies increasingly focus on engaging with ethical partners, ESG insights play a vital role in assessing the potential risks and benefits of such partnerships. By incorporating ethical and sustainable practices, companies can improve their performance and strengthen their resiliency in the long run.
How to Raise Your Dun and Bradstreet Business Credit Score
Boosting your D&B credit scores is achievable with a few strategic steps. If you find that your scores are not up to par, pinpoint the specific score that needs improvement and focus on it. A major factor in improving your scores is paying your bills on time, so make sure you stay current with lenders, vendors, and suppliers. Prioritizing the payment of larger invoices, reducing credit inquiries, and resolving outstanding liens or UCC filings can also help increase your scores. For newer businesses, building a responsible financial track record takes time and patience.
Why is Building Business Credit Important?
Establishing a strong business credit profile can bring a wealth of benefits to your company. It can unlock doors to larger loans and credit lines with lower interest rates, making your business more attractive to potential investors and partners. Additionally, it can result in more favorable terms and rates from vendors and suppliers, making it easier to conduct business. Good business credit speaks to the trustworthiness of your company, making it an essential component of success. While Dun & Bradstreet is a key player in business credit reporting, it’s important to also monitor your business credit reports with Equifax and Experian for a complete picture.
