A Look at the Equifax Small Business Credit Risk Score

Dun & Bradstreet is the main company used to check business credit. They issue a credit score known as PAYDEX. But there are also other companies that provide similar credit evaluation services to businesses. So these come from their independent databases. Hence, consider the Equifax Small Business Credit Risk Score.

One of these bureaus is Equifax. They offer a business scoring credit model. The credit reporting agency calls it the Equifax Small Business Enterprise/ Equifax Small Business Credit Risk Score.

Equifax

Equifax is one of the three major consumer credit rating bureaus. Dun & Bradstreet and Experian are the other two.

So, it is now providing business credit evaluations for over 22,000,000 small businesses and corporations. Hence the idea is to detect early signs of trouble. They do so by monitoring key customers, suppliers & partners.

Equifax’s model is for companies that provide goods and services to small businesses.

The Equifax Small Business Credit Risk Score, On Balance

The score was made to enhance risk assessment throughout the account life cycle. It does so by predicting the chance of a new or existing small business customer becoming seriously delinquent. And that is on supplier accounts. It is also for showing if a business will go bankrupt. So both are within a 12 month period.

These credit scores range from 101 – 816. So this is with a lower score showing a higher risk for serious delinquency.

There are also four reason codes. So these show top factors that impact the credit score. This is for a better understanding of risk.

Equifax does provide both consumer and business credit risk models. But there are considerable differences between the two.

So, pay attention to your scores.

2020 Equifax Update

On February 10, 2020, the Boston Globe reported that Attorney General William Barr and the United States Justice Department were charging four members of China’s military on suspicion of the 2017 hack into Equifax. The Attorney General noted there have been any number of data theft by the Chinese military in recent years. These thefts have been of sensitive information such as identifying American intelligence officers. One use of Equifax‘s financial data could be to find out if any intelligence officers have money issues – and would thereby be subject to bribery or blackmail. Stay tuned as we continue to follow this story.

How This Matters to You and Your Business

For your business, all scoring matters. One of the ways you can consistently help your cause is by paying your bills early. Business credit payment history matters more than anything else. And it is the easiest way to raise any credit score.

No payment history? Then build fundability.