As a small business owner, you understand the imporance of getting paid for the products or services you provide. If a debtor fails to pay, it may hinder your ability to make payroll, buy office supplies or keep the lights on.
You can try to collect the unpaid debt yourself or perhaps hire a collection agency to do it for you. But it’s possible to do one more thing. You can report non-payment. That is, report the delinquent consumer or business debt to a credit reporting agency.
The bureaus receive their credit information from lenders who report non-payment and late information to them. Federal law doesn’t require that you report your small business’s credit report to the credit bureaus. It is possible to decide to report consumer credit information to all three major credit bureaus, just two or only one bureau. Or you can choose not report to any of these.
Why report non-payment?
If you do choose to report your company’s consumer credit information to a credit bureau, like for non-payment of a debt, then your company first has to become a client of each credit bureau. The easiest way to do that is through a credit reporting service like Datalinx, LLC.
Why do the research and legwork yourself? We can walk you through our established process and get you ready to report as quickly as possible. According to Experian, a company has to become a contributor to its credit reporting agencies. Otherwise, the agency will have no way of including that lender’s accounts within its database. This service is not free, and each agency has its own services that it sells to subscriber businesses.
Also, any small business owner who wishes to report consumer credit information to a credit agency must adhere to abide by all national laws regarding such customer reporting, such as the Fair Credit Reporting Act. Again, Datalinx, LLC can help make sure you’re compliant on all fronts and ready to report to the credit bureaus.
Considerations of reporting non-payment
As a small business owner who wants to report non-payment to a credit bureau, you could speak to every agency directly and talk with one of its enterprise sale agents. But it’s much easier to use Datalinx, LLC to do the bulk of the legwork to get you established with the bureaus. For instance, credit reporting is accomplished via electronic information transmission between the company and the credit agency.
A small business which wants to report only one delinquent account may not desire to go through the process of establishing and maintaining these requirements for each credit agency. Datalinx can help you figure out the best approach specific to your business and walk you down the path from there.
A small business operator might want to report an unpaid consumer debt to a consumer credit bureau. However, credit bureaus like Dun & Bradstreet and Experian maintain business credit reports as well. These reports comprise the company’s credit accounts and the amount owed and payment history about those balances. They also record any collection activity pursued against the business like debt collections or conclusions.
Are you a small business owner who wants to report outstanding debt from another business? You’ll first need to register to the credit agency’s business credit reporting services. Let Datalinx, LLC help you get started.
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