Just like personal credit reports, business credit reports are used to verify the reliability of a certain business in paying back loans and other financial properties, such as credit cards or rental payments. It is possible to obtain free credit reports on businesses from the same credit bureaus that process personal credit reports. These bureaus are called Experian, Equifax and Trans Union. You are also able to receive small business credit reports that are different only in the possible size of the document. A credit report for a small business will be smaller in size generally because small businesses are less likely to borrow money from a variety of sources than a larger business would. Credit reports for businesses are quite similar to regular credit reports for citizens.

What information is included in a business credit report?
There is a great number of information included in a business credit report. Some of the things that you will find include:

• The amount of days past the due date that your firm pays their bills. This is referred to as days beyond terms, or DBT;
• A comparison between you and other businesses referring to the time it takes you to pay your bills;
• The total amount owed by the business in the past six months;
• The most credit that was awarded to the business;
• Any times that the business filed for bankruptcy in the past ten years.

Free business credit reports can be obtained by contacting one of the major credit bureaus and asking them to send you your business credit report. You can obtain one free credit report on businesses every calendar year. The purpose of these credit reports is so that when a business attempts to borrow money from a lender, that specific lender can access their credit report and deem them either worthy or not worthy of a loan. By overviewing the business credit report, they will be able to tell if your business has been responsible with past loans. If your business receives a high rating on your report, then most lenders will be willing to lend your business money. However, if you receive a low rating on your credit report, they will be less willing to lend your business money since you have a proven track record of not adequately paying your bills.

What's the difference between business and personal credit reports?
Although there is not much difference in between the theories of these two different reports, there are differences in the information that is contained in them. Both serve to tell prospective lenders if the person or company in question has proven that they are financially responsible. A good rating on your personal credit report will serve the same purpose as a good rating on your business credit report and vice versa. But the information that is contained on either report will vary from personal to business credit reports. On a business credit report, there will be a lot of information about how much money your business makes, in relation to how much money you use to pay bills. Although this general information is also included in personal credit reports, there will generally be more information, thus making it more complicated on a business credit report. Many businesses hire an acountant to take care of their financial matters because credit in general for a business can be quite complex. Therefore, the main difference between these two types of credit reports lies in the complexity and size of the actual report.

How can I improve my business' credit rating?
If you have recently obtained your business' credit report and have discovered that you have a less than admirable credit rating, don't worry because there are steps you can take to increase your credit rating. If you business has a lot of debts, it would be adviseable to consolidate your debts. This lumps all of the debts of the business into one lump sum and you will pay back a certain amount each month. If you are responsible with your payments, this will serve to boost your business' credit rating. Another way to boost your credit rating is to always ensure that your bills are paid on time. Every time you pay a bill past its due date, it has a negative effect on your credit rating. If you find that your business' finances are getting too complex for you to handle alone, it would be in your best interest to hire someone on a part-time basis to take care of your financial information and obligations. This will alleviate some stress from you and also serve to boost your credit rating. Small business credit reports are a great way to figure out what steps your business must take in order to remain in good standing. Therefore, you should retain a copy of your free credit report on businesses at least once per year.