How to report to credit bureaus?

Any business owner can create an account and upload a signed contract over 30 days past due.

To secure your payment, we deliver personalized notices to debtors via email, text, and certified mail, urging direct payment to you to prevent negative credit reporting.

If payment is not received within 30 days, we'll report the debt to credit bureaus, listing your company as the creditor- so they know who to pay.

A negative credit mark will remain on the debtor’s record for seven years unless they pay you in full. Upon receiving payment, you can remove the mark, as if it never happened.

Getting set up as a data furnisher with one of the "Big Three" credit reporting companies—Equifax, Experian, or TransUnion—is a daunting task for small or medium-sized businesses. This is why only large corporations typically have data furnishing contracts with these agencies. Securing a contract with Experian or TransUnion requires reporting thousands of accounts monthly and demands significant capital and manpower to meet regulatory and reporting requirements. This is where The Credit App steps in. We aggregate credit data from thousands of companies and report it on their behalf, ensuring all regulatory and compliance standards are met. This allows business owners to report credit data without needing an entire department to manage the process.

Holding Non-Paying Customers Accountable: Reporting Delinquencies

Missed payments can significantly damage your bottom line, especially if you’re a business owner or landlord dealing with non-paying customers. Fortunately, you have the right to report these delinquencies to the credit bureaus to help recover payments and recoup losses.

Gather Evidence: Document the non-payment history with clear, verifiable proof of delinquency. This may include signed contracts, invoices, statements, and any communication attempts made to collect the outstanding amount.
Report Non-Payment to The Credit App: Click the Start Reporting tab at the top of the page. After setting up an account, fill out the debtor’s information, and it will be added to their credit report. Here’s how the timeline works:
- The day after you place the order, the debtor receives notification of the pending negative credit mark via email and text. Shortly after, they’ll receive a first-class letter and a certified letter in the mail.
- They are given a 30-day grace period to pay or resolve the issue.
- If no action is taken to resolve the debt, it will be uploaded to the credit bureaus after four weeks.

How do credit bureaus work?

Credit bureaus collaborate with various lenders and credit issuers to assist in consumer credit reporting and loan decision-making. Their main objective is to ensure lenders get the data they require to make lending choices. Banks, mortgage lenders, credit card businesses, and other personal financial lending firms are typical clients for credit bureaus. Credit bureaus conduct consumer credit reporting and synthesize information about a person's credit score and provide it to lending organizations.

How to report to Credit Bureaus?

A company must first meet the requirements to become a data furnisher before it may report to the credit bureaus. Depending on the credit bureau, the company might require a minimum number of customer accounts to become a data furnisher. TransUnion, for instance, demands that a company have at least 100 client accounts per month.

The Fair Credit Reporting Act's minimal requirements, which include regular data uploads and compliance with specific technical specifications, must also be met to become a data furnisher. The company must also sign up as a paying client with one of the three major credit agencies.

Consumer Credit Reporting Services

There are three major consumer credit bureaus, Experian, TransUnion, and Equifax that gather information about consumer credit and create credit reports. The credit data they use is provided by creditors. Businesses are not legally required to report consumer credit information to credit agencies, but they may choose to do so for all three bureaus, or just one or two.

Significance:

In order for a company to alert credit bureaus of consumer credit information, such as non-payment of a bill, the company must first become a subscriber with each bureau. For example, the company must subscribe to Experian's credit reporting services before the bureau can add the creditor's accounts to its database. Keep in mind that subscribing to these services is not free and that all federal laws governing consumer reporting, such as the Fair Credit Reporting Act, must be followed by the company.

Business Credit Bureaus:

A small business owner can report an outstanding consumer debt to a consumer credit bureau, but credit bureaus like Dun & Bradstreet and Experian also maintain records of business credit. These reports include information about the company's credit accounts, outstanding debt, payment history, and any other debt collection actions taken against the company, such as lawsuits. To report overdue debt from another company and be aware of debt collection efforts, small business owners must subscribe to a credit bureau's business credit reporting services.

Concluding, can small business report nonpayment to credit agencies? The answer is yes.

Although each credit bureau has its rules, generally speaking, you should only report debt that has been past due for at least 30 days. Although Equifax would accept complaints of debts as low as $50, you should be cautious before reporting accounts so small. Often, the time spent reporting the delinquency is more valuable than the money you receive. If you decide to report an overdue account, get detailed reporting instructions from each credit bureau by getting in touch with them.

Can small business report nonpayment to credit agencies?

How to report to the credit bureau? Can businesses owners report to credit bureaus? As a small business owner, you must receive payment for the goods or services your company sells. When a debtor fails to pay, it can get very challenging for a business to meet financial needs, such as paying employees, buying office supplies, or keeping the business running. You may also choose to hire a debt collection agency to handle unpaid debt. Further, non-payment of debt can be reported to a credit reporting bureau.

Start Reporting Credit