Page 1 Reading the Commercial Credit Report Pro Get up to double the business credit information with our Advantage series reports including data from Experian, Dun & Bradstreet and Equifax. Too many times a single bureau is not enough to know for sure if a deal is good or not. Leverage the power of our combo bureau Advantage Reports and approve more good deals. The ideal combination of unique industry and financial trade, public record, collections, corporate linkage and company background information provide the complete picture. The Commercial Credit Report Pro includes Experian, D&B, and Edgar. Scoring and Company Information 1 1. The Credit Logic Score The Credit Logic Score ranges from 0 (high risk) to 100 (low risk). The Unsecured Trade Credit Limit Recommendation is based on the company s credit history with options from conservative to aggressive. The next two smaller bars show you the percent of on-time payments the company has made in the last six months. To the right of each, an arrow indicates if the company is trending negatively, positively, or has minimal change compared to the prior 24 months. 2 2. Company Information D&B provides the most in-depth and upto-date company demographics. We ve included this section in your report to give you an overview of the business s annual sales, net worth, employee total, company management, type of industry, SIC, legal status and supplemental data, etc.
Page 2 3 3. Corporate Linkage The Corporate Linkage section includes the ultimate parent, headquarters, and branches of the company. 4. Trends The 6-Month and Quarterly DBT (Days Beyond Terms) allow you to identify any changes in payment habits over the last six months or last 5 quarters and compare the company s payment history with the industry average. This will allow you to identify any seasonal trends in a company s ability to meet its payment obligations in addition to identifying improving or deteriorating payment trends. 4 Balance to High Credit Ratio 5 5. Balance to High Credit Ratio The Balance to High Credit Ratio shows you how much credit the company has been using compared to their credit limit.
Page 3 D&B Payment Habits by Industry 6 6. D&B Payment Habits by Industry The D&B Payment Summary reflects payment information in D&B s file for the prior 12months. It provides you with details on how prompt the target company is about paying vendors, broken up by industry. For each industry, you are shown how many trade lines were received, the total dollar amount for that industry, highest credit amount, and the percent of those lines that are being paid promptly or beyond terms. D&B PAYDEX Score 7 7. Dun and Bradstreet PAYDEX Score The PAYDEX score, possibly the most popular component of D&B reports, is a unique, dollar weighted indicator of payment performance based on payment experiences, as reported to D&B by trade references. Under the score, we provide you with a score chart to reference. If a company has a score of 80, they are prompt in payment. Anything above 80 is more prompt, and anything below 80 is beyond terms.
Page 4 Legal Filings Trade Payment Experiences 9 8 8. Legal Filings The Legal Filings box will give you a snapshot of the filings (tax liens, judgments, bankruptcies) that will be shown in detail later in the report. 9. Trade Payment experiences Trade Payment Experiences offer detailed payment information provided by third party creditors. The information is industry specific and includes payment terms, recent high credit limit, current balance, and aging. Each trade line represents an individual supplier s perspective on how the company meets its financial obligations. The information will help identify payment trends in specific industries. Trade Payment Totals 10 10. Trade Payment Totals The Trade Payment Totals box shows you a total of the detailed trade payments that you examined in the box before. 11 11. Collection Filings Collections may indicate financial stress. Collection data includes filing date, status, and amount. 12 12. Bankruptcies Bankruptcy information includes the file date, type, and status.
Page 5 13 13. Tax Liens Tax liens are filed by the city, county, state, or federal government to cover unpaid tax obligations. UCC Filings 14 15 14. Judgments This portion of the Public Records section provides you with details on all judgments filed against the target company. You are provided with a case number, filing date, cause of action, reported date, total assets, total liabilities, disposition status and date, and the court info. 15. Uniform Commercial Code Filings UCC s are filed whenever a business pledges an asset as collateral for a loan, lease or Line of Credit (LOC). The collateral is identified in general terms such as; accounts receivables, property, accounts, leases, and inventory. Contracts and notes receivable or proceeds. The Company or financial institution making the loan is also identified. 16. EDGAR Financial Statements The EDGAR Financial Statements section is broken up into four parts: Income Statements, Balance Sheets, Cash Flow Statements, and Financial Ratios. These sections provide you with the last four years of financial information on the target company. This information is included in your report if the target company is publicly traded. 16
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