Commercial Tenant Credit Check

Commercial Tenant Credit Checks

As a commercial property owner or manager, 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 or 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 Checks.

A Commercial Tenant Credit check can be broken down into two categories: reports on the business and reports on the principal(s) of the company.

Commercial Tenant Credit Checks that can be run on the business include Business Summaries, Commercial Intelliscores, and Business Profiles.

Business Summaries provide a credit history snapshot for the company you are screening, along with legal data. This credit report 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 any bankruptcy records, and more. Business summaries will also provide 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 history 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 resembling 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 Services' 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 history file and is unable to be scored against other companies. As a commercial property owner, even if there is credit history information, you may feel that a few months’ worth of credit records 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.

Business Report Options

Commercial Tenant Credit Check reports are just like our business credit reports, but additional information can be added if needed. Below are some packages:

Business Summary Reports

Business Summary Reports include a quick view of the business's credit history as well as legal data on the business. The report will show the amount of credit lines open under the company name and any legal Judgments or tax liens imposed on the company as well as bankruptcy filings. You will also be provided with the date of incorporation and the tax filing status of the business ("Inactive Business", "Active Business" and so forth) as well as the principal officer's names.

Commercial Intelliscore

Commercial Intelliscore is our most popular business credit report for individuals or companies who need to make a quick business decision. This one-page report features a credit risk score ranging from 1 (low risk) to 5 (high risk), ranked against other businesses within the same field. The following factors influence the credit risk score on a Commercial Intelliscore report:

• Payment history and current payment status of trade lines

• Length of business credit history

• Bankruptcies related to this business

• Judgments filed against this business

• Collections accounts

• Credit utilization

After the score, this report lists the major factors that influenced a company’s risk classification. Also providing a short financial summary of the business, the Commercial Intelliscore serves as an effective prediction of the likelihood of serious credit delinquencies for a business within the next 12 months.

Business Profile Report

The Business Profile is a detailed, in-depth report which gives a current and objective overview of a company’s ability and willingness to pay.

Business Profile includes the following:

• Executive Summary of legal filings & collections and trade information including:
  

  • Total collections

  • Highest credit amount extended

  • Bankruptcy filings

  • Judgement filings

  • Monetary sum of legal filings

  • Tax lien filings

  • UCC filings

  • Analysis of cautionary UCC filings

  • Highest DBT

  • Monthly average DBT (Days Beyond Terms)

  • Trade balances

  • Total continuous trades

• Graphs of DBT trends

• Detailed trade payment information

• Additional payment information, including:

  
  

  • Monthly and quarterly payment trends

  • Additional payment experiences

• Company background information, including:
  

  • Corporate registration

  • Key personnel

  • Operating information such as years in business, number of employees, and sales

NEW Customer Signup

AAA Credit Screening Services charges NO Signup Fee, No Monthly Fees & No Annual fees! You only pay for the reports you want to order. Signup is 3 easy steps and once you're signed up, you can start ordering reports online. Click on the button below to complete our online Customer Service Agreement: