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Managing risk: Equifax releases business credit report

By Daniel Kosir |

Being privy to the financial history of the firms you do business with is a pivotal step in managing and mitigating risk. Why enter a business relationship blindly when such information is at your fingertips?

The Equifax Business Credit Report, launched last month, provides a comprehensive view of the credit history and payment performance of small firms and large businesses. It is a valuable tool for managing risk and acquiring profitable customers, allowing lenders and providers of commercial credit to identify potentially risky accounts, better assess the financial profiles of applicants and make more informed credit decisions.
The report, which draws upon data from Equifax's commercial credit database of more than two million businesses, offers greater transparency into the financial health of business applicants by leveraging information assets from a variety of sources including:

  • Trusted data suppliers;
  • Industry credit groups;
  • Collection agencies;
  • Courts; and
  • The Superintendent Office of Bankruptcy.

The large conglomeration of data allows lenders and creditors to easily evaluate a business's financial history and identify conflicting application information.

Not just crunched numbers

One unique feature of the Equifax Business Credit Report is its user-friendliness and easy readability. The service is designed with graphics and highlight sections, making navigation simple and emphasizing important information.

Critical data such as bankruptcy alerts, inquiry totals and bank report details are presented at the beginning of every report. The reports also contain summary sections, navigation tools and hyperlinks with information displayed in the form of graphs and tables that are quick and easy to read.

The service also has features that allow creditors to predict an applicant's propensity for delinquency or business failure:

  • Commercial Delinquency Score (CDS)
  • Business Failure Risk Score (BFRS)
  • Up to six Standard Industrial Classification (SIC) and  North American Industry Classification System (NAICS) codes

Dan Csont, CMO of Equifax Commercial Information Solutions, says the tool is "...specifically designed to address the needs of today's lenders and trade creditors navigating constant economic change."

He adds that "with its streamlined and interactive format, the Equifax Business Credit Report instantly connects businesses with the insight they need to better evaluate risk, manage credit exposure and drive greater ROI from new and existing relationships."

More information on the Equifax Business Credit Report and other services offered by the company is available on their business solutions website.

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