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Ultimate Guide to Business Credit Reports

Your Business Credit Report is extremely important to your business and can often be your lifeline! Businesses that you wish to trade with, will often use the Credit Report as the first step in the process of determining whether to extend credit to a new customer. 

The following article will explain what information is included in Business Credit Reports, how to order a Report and how to ensure you maintain a High Credit Score.

What is a Business Credit Report?

A business Credit Report, unlike personal credit scores, are publicly available. A Business Credit report provides important insight into your Company Structure and Trading History providing important information about the health of your business.

Typically, in Australia, your Credit Score is negatively impacted each time it is checked via a lender.

Knowing how you appear to lenders gives you the power to make better financial decisions.

The Credit Report provides information on the Company, its Directors and Shareholders, trading history, and details of credit that has previously been applied for.

In addition to this, the Credit Report will also show details of any Credit Defaults, Court Judgments that have been listed against your company.

How to read a Business Credit Report

The information on a Business Credit Report is set out under various headings making it easy to read.

  • Company Structure 
  • ABR and ASIC Data
  • Risk Score
  • Payment Rating
  • Credit Enquiries
  • Risk Data
  • ASIC Historical Data
  • Business Names
  • PPSR (optional)

A Summary of all the information is also included on the Credit Report, ultimately providing you with a Risk Score on your business. 

How to report your business credit? What is a Business Score?

A risk or Business Credit Score is a numerical indicator of the financial health of a Business.

It is a number between 0 and 1200.

N.B. Different Reporting Agencies all differ slightly with how they obtain the Business Credit Score.

The following, along with other factors will be considered when determining a Business Credit Score:

  • Registered defaults
  • Court Judgments
  • External administrations
  • Previous Credit Enquiries

It is also important to note that when a lender is checking a Business Credit Score, they will often also check the Directors personal Credit Score before determining the outcome of a Credit Application.

How to check a business credit report

Business reports are available online via credit reporting agencies. The three main Credit Reporting Bodies in Australia –are Experian, Equifax and Illion. These credit bureaus are the companies that create and keep hold of your credit reports.

Business Credit Reports are available to purchase online. All you need is valid company information such as ABN/ACN for the business in which you want to order the report for. 

How long do credit enquiries stay on your credit report?

Repayment History information remains on a Credit File for 2 years.

Any payment defaults, Court judgments or Credit Enquiries will remain on your Company Credit File for up to 7 years.  It is important to make an enquiry on your Business Report regularly or set up an alert that will notify you if anyone accesses your Credit File. 

This way there are no ugly surprises, and you can feel confident when applying for Credit.

If there are any discrepancies, you will have the ability to investigate these before a prospective lender sees them.

Do personal loans show up on credit reports?

It is important to note that lenders don’t just consider your business credit when you apply for finance. A lender will also check your personal credit file. However, these enquiries into your personal credit file cannot be accessed without your permission.

So yes, a lender will have the ability with your consent, to see personal loans, and repayment history.

They will also be able to see what lenders have refused your application.

Make sure that you do whatever you can to improve your Commercial and Personal Credit Score before completing an application for credit. Even if this means postponing your credit application for a period of time. 

Need assistance finding your Credit Report? Contact us now!

Ordering Business Credit Reports is cost-effective, quick, and easy.

Simply click the link below to provide details of the Business and we will do the rest.

A fully detailed report will be sent to you via email on the same day.