PrintA credit report is a snapshot of a company´s or an individual´s financial activities. Credit reports typically include historical payment data, bankruptcy records, Uniform Commercial Code (UCC) filings, bank loan information, leases, payment trends and comparative industry data.
A typical credit report on a company contains its corporate name, address and phone number. It also includes the name of the chief executive officer, the company´s Standard Industrial Classification (SIC) code, a description of its line of business and the date when the company began operations. Also included are the number of employees, sales and a net worth figure. In many cases, a report includes a numerical credit rating.
Financial information can run the gamut from basic sales and payment data to detailed transactional analysis. The information should include a summary of any lawsuits, liens or court judgments that are outstanding, plus any relevant bankruptcy filings. If available, there will also be information on changes in ownership, relocations, company acquisitions and publicly reported news events, including fires or natural disasters.
The amount of information depends on the stature of the company and whether it is publicly owned.
Prices can range from less than $100 for a simple report to thousands of dollars for an especially detailed and lengthy report. The cost of a credit report also varies according to how many and how often you order them. In many cases, basic information is available for free, including the industries in which a company operates, the number of employees, sales volume and the number of related companies.
Most credit report services focus on publicly held companies. Credit rating resources for privately held and newer companies are less formalized. To check payment practices for smaller companies, try talking to their customers, suppliers and bankers.
Remember, too, that while credit reports can be important tools, they´re not ends in themselves. Before making decisions based on credit reports, you´ll want to back up the information with data gleaned from other kinds of company research, as well as from customers, employees and personal contacts.
