Commercial Tenant Credit Report
Are Commercial Tenant Credit Reports the Solution for You?
As a commercial property owner, you may feel that you are faced with very limited options when trying to determine a business’s financial responsibility. Whereas residential property owners typically run credit reports and verifications of rental history for their prospective tenants, what are your options as a commercial property owner?
AAA Credit Screening Services understands your need to protect your property and to feel secure in your commercial leasing decision. That is why AAA Credit Screening Services is now offering Commercial Tenant Credit Reports.
Commercial Tenant Credit Reports can be broken up into two categories: reports on the business, and reports on the principal(s) of the company.
Commercial Tenant Credit Reports that can be ran on the business include Business Summaries, Commercial Intelliscores, and Business Profiles.
Business Summaries provide a credit snapshot for the company you are screening, along with legal data. This credit snapshot includes the number of trade lines the company has open, whether the business has judgments or tax liens levied against them, whether they have filed for bankruptcy, and more. Business summaries will also tell the date of incorporation, the corporate filing status (e.g. “Active Business) of the company, and the name(s) of the principal officer(s).
Commercial Intelliscores are one-page reports with the same credit information found on a business summary, plus information such as current days beyond terms (DBT) in their trade agreements, monthly average DBT, the company’s total trade balance of all trades, the highest credit amount extended to them, number of collections accounts, and a monetary sum of legal filings. Commercial Intelliscores also provide the unique Intelliscore Plus, a numerical rating which resembles a credit score, ranging from “High Risk” to “Low Risk” based on business credit.
The final Commercial Tenant Credit Report that can be ran on the company that wishes to lease your property is a Business Profile. Business Profiles are AAA Credit Screening’s most comprehensive business credit reports. This Commercial Tenant Credit Report’s first page includes an executive summary, which reviews the information that is contained in the report for a quick overview. This includes the company’s current dollar weighted calculation of the average number of days that payments were made beyond the invoice due date range compared to all other companies and compared to other companies in the same industry. The overview also graphs quarterly and 7-month DBT trends, and summarizes legal filings and collections, along with trade information. The executive summary also gives a report of performance analysis for the business, assessing indicators of payment trends and comparing the business’s payment speed with others in the same industry.
What is unique to the business profile, is that each of the reported tradelines and payment experiences are then detailed in full, with each creditor, balance, and days beyond terms per account listed. This level of detail extends to the legal filings and collections as well.
If the company that you wish to order a Commercial Tenant Credit Report on was established within the past year, you may find that the company has a thin credit file, and is unable to be scored against other companies. As a commercial property owner, even if there is credit information, you may feel that a few months’ worth of credit history is not comprehensive enough to assure you of your commercial tenant’s financial responsibility. The solution to this problem is to run an individual credit report on your prospective commercial tenant’s principal(s).
Using an individual credit report as the determining factor in your commercial tenant credit decision is recommended to be in tandem with another Commercial Tenant Credit Report, such as the Commercial Intelliscore. This way, you can feel assured that you have a well-balanced understanding of the company and its principals’ credit worthiness.
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For more information on Business Credit Reports visit our Business Credit Page
As always, AAA Credit Screening Services' frienly customer service representatives are standing by to answer any questions that you many have, please contact us at 1-888-282-0447