Dun & Bradstreet Report: Definition, Cost & Features

The Dun and Bradstreet report is one of the most popular credit reports for businesses. Dun and Bradstreet (D&B) is a credit reporting agency that collects public and private information to produce a comprehensive credit profile. D&B also provides business credit scores called PAYDEX® Ratings that range from 1 to 100.

The D&B business credit report shows a variety of company information, including operational data and public filings like liens and bankruptcies. Creditors review the information on your credit report to determine your creditworthiness. Business owners looking to get approved for loans will likely have their D&B credit reports checked first. Owners can pull their credit reports by using their D-U-N-S® code or company name to search the D&B website.

What is the Dun & Bradstreet Report and How Does It Work?

Dun & Bradstreet uses data taken from public records as well as information reported directly from vendors and collection agencies. This report shows the overall health and status of a business. D&B scores companies in five ways, including the PAYDEX® Rating, which is performance-based. The remaining three scores predict and estimate future company behavior. Creditors use these scores for loan approval and to set interest rates.

“It’s incredibly important to check for a D&B report even if you haven’t created one yourself,” says Tracy Becker, founder and president of the business credit experts at North Shore Advisory and a FICO®-certified professional. “If there’s a file on you created by your creditors and you don’t know about it, you’ll want to see it and improve it.

The five Dun & Bradstreet credit score offers are:

• PAYDEX® Rating: Evaluates debt-paying capacity over the last two years. It’s used to establish creditworthiness in the same way that a personal FICO® score is. Scores vary from one to one hundred, with one hundred being the best.
• D&B rating: Averages a company’s financial strength based on balance statements, company size, and business age. It’s made up of two scores: the financial strength rating, which is coded with letters and numbers based on company size, and the risk indicator score, which ranges from 1 to 4, with 4 being the highest risk and 1 being the lowest risk.
• The chance of a corporation becoming delinquent or stopping operations in the following 12 months is predicted by the delinquency predictor score. A percentile (1 to 100, with 100 being the lowest risk), a class (1 to 5, with 1 being the lowest danger), and a raw score (1 to 100, with 100 being the lowest risk) are all methods to categorize this score (101 to 670, with 670 being the lowest risk).
• A failing grade: Indicates how likely a firm is to suffer financial difficulties in the following 12 months. A percentile (1 to 100, with 1 being the greatest risk), a class (1 to 5, with 1 being the lowest risk), and a raw score are the three components of the score (1,001 to 1,875, with the lowest number indicating highest risk).
• Rating of viability: The chance of a firm going out of business or being bankrupt is determined by its Rating of viability. The viability score (1 to 9, with 1 being the lowest risk), portfolio comparison (1 to 9, with 1 representing the best), data depth code (A through M), and business profile code make up the scores (A through Z).

A Dun & Bradstreet report can either be self-generated or generated by a third party. Like your personal credit, your Dun & Bradstreet report improves with solid payment history, well-managed credit balances, and accurate information about the business. Companies making late payments to vendors will have that activity listed on their D&B report, which will negatively impact credit scores.

Alternatively, timely vendor payments will reflect well on your report and can raise your credit score. Anyone with information about the business can access your D&B report. As a result, credit inquiries have little to no impact on your business credit.

Who Should Use the Dun & Bradstreet Report?

The Dun & Bradstreet report is best for both business owners and creditors looking for detailed information about the business. Companies that want financing through loans or other means will need an established credit history. The D&B credit report is a great resource for potential business partners and creditors looking to verify company history, business age, and financial trustworthiness.

Many business lenders do credit checks on your company without informing you. They just need your consent to use your personal credit, which is why they inquire about it right away. While it isn’t the most important consideration, it might determine whether or not your company gets authorized for a loan.

Smart business people with good credit will often print out their D&B report and include it along with a bid to a potential account or partner. What this does is cause the potential account or partner to pull the D&B reports of competing companies. If the business’s credit is better than the rest, it might win them the deal.” —Becker

The D&B report is best for the following situations:

• Businesses that want to build credit: Companies with little to no business credit can establish business credit with a Dun & Bradstreet credit profile. Businesses can also self-report up to 12 months of positive payment activity with a CreditBuilder™ service package.
• Businesses that need financing: Companies that need funding can improve their odds of approval with a D&B credit report showing consistent payment history and high credit scores. Lenders often use the D&B report to determine a company’s creditworthiness.
• Companies negotiating with vendors: Owners negotiating terms with suppliers can use their D&B report to demonstrate good payment history with other vendors.
• Creditors: Creditors can pull D&B reports on potential borrowers before approving credit.

D&B business reports are also helpful to owners looking to qualify potential business partners before establishing an agreement. The additional information you receive from a Dun & Bradstreet report can act as proof of company viability and historical financial responsibility. Owners can see detailed information on company ownership in relation to other businesses in that industry.

Costs

Companies that have a Dun & Bradstreet credit profile also have a nine-digit D-U-N-S® code. Requesting a D-U-N-S® code is free, but businesses that opt for the five-day expedited delivery will have to pay $229 for it. Dun & Bradstreet also offers four different service packages, one of which offers free credit report access for seven days. Services with longer access times start at $149.

The cost to get a D&B credit report are:

• D-U-N-S® code: D-U-N-S® code: $0 for a standard request, delivered within 30 business days; $229 for expedited delivery within five business days. for a normal request that will be delivered within 30 business days; $229 for an expedited delivery that will be delivered within five business days.
• CreditSignal®: CreditSignal®: $0 to receive monthly alerts on credit score changes. This option doesn’t include credit reports or credit scores. for monthly credit score changes notifications. Credit reports and credit scores are not included in this option.
• CreditBuilder™ Free: $0 for seven-day access to your credit report with D&B scores and ratings.
• CreditBuilderTM Plus costs $149 and allows you to make up to 12 positive payments. This plan includes a free D-U-N-S® code as well as a credit report in five days or fewer.
• CreditBuilderTM Premium: $199 for an unlimited amount of trade references to add to your credit report, as well as notifications on the businesses you provided as trade references. It also includes a free D-U-N-S® code and a credit report, both of which are provided in five days or fewer.

Businesses can view a credit report snapshot online or sign up for one of the monthly memberships for access to the full credit report. The CreditSignal® option includes credit score changes but doesn’t include actual credit scores or credit reports. Dun & Bradstreet also offers businesses a Credibility Concierge® package where owners are assigned their own credit specialists. Owners should contact Dun & Bradstreet directly for pricing.

Features

The D&B report includes a variety of information about the business, including a late payment indicator, a detailed description of the Business view, and a delinquency risk score. Depending on the type of services purchased, owners can also view the number of lawsuits filed against the company. D&B creates its credit profiles with information pulled from more than 30,000 private and public sources.

The information included in the D&B report is:

Description of the Business

Example of Description of the Business section

The D&B Description of the Business section provides a summary that includes company size and Ownership. This section also shows the company’s contact information, industry classification, and overall business history. This is where you’ll also find a Score for delinquency rating as well as a failing grade rating as an overview. Businesses looking to confirm the information about the business can view the number of company employees as well as the state where it was registered.

The company section of the Dun & Bradstreet report includes the following information:

• D-U-N-S® code
• A failing grade
• Score for delinquency
• Employees and their age in the workplace
• Formal legal document
• A historical record
• Incorporation state
• Ownership
• Principal’s name
• Industry of the business

Owners can view company size and the number of years the company has been in business. Lenders and vendors often use this information to gauge if a company is a viable option for credit. Business owners can verify their own information is correct and identify errors that need to be corrected. Owners can also view their own failing grade to understand how creditors and lenders view their business’s potential risk.

Entrepreneurial Activities

This subsection of the Description of the Business includes a more detailed view of business data, including the Standard Industrial Classification (SIC) and the North American Industry Classification System (NAICS). D&B also lists the company’s financial status as either good, fair, or unbalanced. This ratio compares the company in question to other businesses in the same industry.

The Entrepreneurial Activities on the D&B credit report are:

• Information about the business
• Information from the SIC/NAICS
• Governmental action

D&B also tags the company’s financing status as either secured or unsecured to indicate if the company has collateral associated with the business. The information provided in the section is not self-reported. If there’s a discrepancy in this section, owners will need to contact D&B to initiate an investigation for correction.

Assessment of the Risk

The Assessment of the Risk dashboard is the most in-depth section of the D&B credit report. The information included here highlights Dun & Bradstreet’s rating systems. These ratings provide insight into the company’s most important risk factors as well as the overall health of the business. Here, owners will be able to see the recommended maximum amount of credit for the company shown.

The overall business risk rating provides a color-coded risk level indicating the company’s composite rating of all five scores. This status will be highlighted as Low, Low-Moderate, Moderate, Moderate-High, or High. Most D&B risk indicators are represented in multiple ways, including raw scores.

The five Dun & Bradstreet report scores are:

Rating of viability

You’ll find the Rating of viability along with the color-coded risk level here

Ranked on a scale from low to high, the D&B viability score evaluates a company’s probability of bankruptcy or going out of business. With the portfolio comparison score, owners can see how the company ranks compared to other businesses in the same industry. This rating uses information from financial statements, Payments for Trade, and other Entrepreneurial Activities.

Viability scores are made up of four different components including the viability score (1 to 9 with one representing the lowest risk), portfolio comparison (1 to 9, with one being the best), data depth code (A through M), and the Description of the Business code (A through Z). Ratings are most often represented on a portfolio comparison scale from 1 to 9 (as shown above).

A failing grade

Similar to Equifax, the D&B report also has a failing grade that allows owners to predict a company’s risk level. However, Equifax’s score ranges from 1,000 to 1,880. Based on previous payment history, this tool indicates to creditors and lenders how likely the company is to default on payments or file for bankruptcy.

The failing grade is illustrated in three ways, including as a percentile (1 to 100, with 1 being the highest risk), a class (1 to 5, with one being the lowest risk), and a raw score, (1,001 to 1,875, with 1,001 being the highest risk). However, the failing grade is most often shown as a rating from 100 to 1. A failing grade of 43 indicates that the company has a moderate level of risk.

Score for delinquency

The 12-month Score for delinquency is illustrated in the graph

This D&B section estimates how likely it is that a company will default on payments or file for bankruptcy based on the next 12 months. This tool uses a chart to show company trends in comparison to other companies in the same industry. However, the Score for delinquency is based solely on invoice payments. A company is considered a severely delinquent payer when late payments of 91 days or more make up at least 10% of the dollars reported.

Like a failing grade and viability score, the Score for delinquency can be made up of three components. These include a percentile (1 to 100, with 100 being the lowest risk ), a class (1 to 5 with 1 being the lowest risk), and a raw score (101 to 670, with 670 being the lowest risk). Even though this score is made up of several numbers, the Score for delinquency is often represented as a score from 1 to 100 (as shown above).

PAYDEX® Rating

An example of what the PAYDEX® Rating looks like

The D&B PAYDEX® Rating is one of the most commonly used credit scores for businesses. The PAYDEX® Rating, much like a personal FICO® score, indicates a company’s overall credit profile based on vendor payment history. The D&B PAYDEX® Rating ranges from 0 on the low end to 100 on the high end. A PAYDEX® Rating of 80 is a solid indicator that the company pays vendors regularly and on time. A payment of 100 indicates the company regularly pays early.

D&B Rating

The Dun & Bradstreet report also includes an overall D&B rating. This Assessment of the Risk tool indicates a company’s financial strength based on balance statements, company size, public records, and business age. The financial strength rating is represented by a letter and number combination based on company size. For example, a company with a financial strength score of 5A has 50 million in sales or higher.

The risk indicator score, also known as the composite credit appraisal score, is a number that goes from one to four, with one indicating the lowest risk. A risk indicator score of 1 or 2 will be awarded to businesses that do not have appropriate financial statements.

Payments for Trade

Business owners interested in vendor and trade relationships will find that information in the trade payment section. The Dun & Bradstreet credit report highlights the types of trade accounts each company has, including the total value of each tradeline. Viewers can see past due amounts at a glance as well as the number of days the vendor reported the account as late.

This section shows up to 80 of the most recent tradelines associated with the company. It also provides the largest tradeline amount as well as the amount still owed for each tradeline. Businesses can also see the total credit amount, the terms of the tradeline, and what percentage of payments were late. Because Payments for Trade are a reflection of company size, ratings more heavily weigh larger Payments for Trade over smaller ones.

Legal Occasions

Businesses can view legal records, such as liens and bankruptcies, under the Legal Occasions section. This part of the D&B report shows the number of Uniform Commercial Code (UCC) filings, lawsuits, and judgments the company has. It also includes any Personal Property Securities Act (PPSA) statements. Creditors may view a company that has several liens, judgments, and lawsuits as high risk.

Tree of Life

See business relations under the Tree of Life section

Dun & Bradstreet credit report viewers can see the company’s Ownership in connection with other businesses. The Tree of Life section takes a global look at the majority-owned subsidiaries and how they’re connected to other companies with the same majority-owned subsidiary. The purpose of this tool is for business owners to see the company’s size and locations as well as verify their Information about the business. This can also highlight unsavory company connections.

How to Get a D&B Report

Business owners can get a Dun & Bradstreet report by visiting the provider’s website. You can either pull a credit report on your company or another company. Owners can access their own credit reports by searching their D-U-N-S® code or company name. If you don’t already have a D-U-N-S® code, you will have the option to request one.

1. Visit the D&B Report Website

The Dun & Bradstreet home screen

You can get your own Dun & Bradstreet report online on the D&B website. Once you’re on the first page, you’ll need to click on “D-U-N-S Number Lookup” under the “D-U-N-S Number” dropdown menu. If you don’t have your D-U-N-S® code, you also can locate your company by name and state. Click on “Company Search” in the top right corner of the search to search by your business name.

2. Conduct a Company Search

To search, type in your firm name and choose your state.

Select the name and address that corresponds to your profile.

To use the name search, type your firm name into the “Search for a Company” section and choose your state. Next, click the “Yes” or “No” radio choice button. After that, you’ll see a screen with your firm name, street location, and the city and state where it’s situated. Select the box that has the proper information about your organization. You’ll be led to a product page where you can choose your bundle.

3. Make a purchase

Choose a package to add to your shopping cart.

You’ll then be brought to a checkout page where you can choose the services you want and add them to your basket. Each bundle includes a description as well as monthly expenses. If you choose not to pay on a monthly basis, you may opt for a yearly payment plan.

After you’ve chosen your purchase, go to the popup screen and click the “Continue to Checkout” option. You may then register on the site if you haven’t previously. Choose a password and enter your name and email address. You’ll be able to pick your payment choices, make the purchase, and examine your credit profile online after you’ve enrolled.

Pros & Cons of The Dun & Bradstreet Reports

The Dun & Bradstreet report is one of the most widely used credit reports for businesses. Like other credit bureaus, Dun & Bradstreet has both advantages and disadvantages, including popularity and cost of purchase.

Pros

The pros of getting a Dun & Bradstreet credit report are:

• Popularity: The D&B report is popular among creditors and lenders. Creditors are most likely to use this profile and score to determine creditworthiness.
• Building business credit: Businesses can add up to 12 months of vendor payments in good standing to boost their credit scores. Owners looking to build business credit can do so with D&B.
• Self-reporting options: It’s in a company’s best interest to add as much information as possible to the D&B credit report to ensure accurate and positive information is listed. It can add validity by establishing a single location where others can verify payment history, company information, and risk factors.

Cons

The cons of getting a D&B credit report are:

• On the low end, a solo credit report costs $189, and credit report access for more than seven days costs $149 a month. One-time credit reports from Experian start at $99.95.
• D-U-N-S Number: Businesses that do not have this number must apply for one to establish a D&B credit report. This could take up to 30 days to receive.
• Inaccuracies: Since most business credit bureaus collect private and public information using just your business name and address, it’s easier to have discrepancies on a D&B report than on a consumer credit report.

Alternatives to the Dun & Bradstreet Report (D&B Report)

The Dun & Bradstreet credit report offers one of the most comprehensive credit reports for businesses but keeping track of your D&B credit report can get expensive. Owners looking for alternatives might be interested in using information from other business credit bureaus instead, including Experian and Equifax. Each bureau has its own scoring system, but they all collect company information to determine your business credit score.

Equifax

Equifax is a well-known credit bureau that services both consumer and business credit profiles. Equifax provides three risk indicator scores, including business payment index score, business credit risk score, and business a failing grade. Like their consumer reports, Equifax factors in your company’s total available credit when calculating your business credit score.

Experian

Experian offers credit scores called Intelliscore. Companies are rated on a scale from 1 to 100, with 1 being the highest risk and 100 being the lowest risk. Experian’s rating is based on public records, collections, vendor payments, and overall Information about the business. This business credit score is most commonly used by lenders and banks, so owners looking for loans should know this score. Unlike D&B, Experian doesn’t allow companies to self-report information.

Score FICO® SBSSSM

The Score FICO® SBSSSM, much like the consumer version, provides a business credit score based on all three business credit bureaus. Score FICO® SBSSSM uses information from D&B, Equifax, and Experian to rate a business on a scale of 0 to 300, with 300 being the highest score. Owners looking to get approved for Small Business Administration (SBA) loans will most likely need to understand this score since the Score FICO® SBSSSM is most popular with SBA lenders.

Frequently Asked Questions (FAQs) About D&B Reports

What is the price of a Dun & Bradstreet report?

You can get a Dun & Bradstreet report as either a one-time purchase or with a monthly service package. A standalone D&B credit report will cost $189 while the service packages range from $149 to $199 and above. You can also access your credit report free for seven days with the CreditBuilder Free package.

How do I get a copy of my D&B report?

You can get a D&B report by going to the Dun & Bradstreet website and searching with your company name or D-U-N-S® code. If your company doesn’t already have a profile on the site, you’ll need to apply for a D-U-N-S® code before getting a credit report.

How does D&B get their information?

The D&B report is based on a combination of privately reported and public information. Dun & Bradstreet also collects legal filings like judgments, liens, lawsuits, and bankruptcies. Companies are also allowed to self-report information. However, Dun & Bradstreet verifies all information, whether self-reported or reported by a third party.

Conclusion

The Dun & Bradstreet report uses information about the business collected from more than 30,000 sources to create a comprehensive business credit report. This information includes publicly and privately collected data along with five scores that measure a company’s credit and risk. The D&B report will most likely benefit owners looking to establish business credit, get approved for loans, or screen other businesses.