Understanding Business Credit Inquiries

Updated: Feb 4

Most small business owners view business credit inquiries in the same terms as personal credit inquiries, but — in reality — that couldn't be further from the truth! While there are certain circumstances where having your D&B report pulled could count against your company, its important for business owners to understand inquiries and what they mean to your scores and ratings.

Credit inquiries are a normal part of doing business. Any active and functioning business is going to have them. Whether you are placing an order online, setting up a new account, applying for new credit cards, requesting approval for a new credit line, or increasing one you already have, trade-based inquiries send a signal to D&B that your business is open, operating, and buying products or services. In most cases, this also tells D&B that your company is placing orders, growing, and thriving.

But if you go months or years without generating any new interest (inquiries) that usually tells D&B that your business has gone dormant (or was never really active in the first place) and that can be especially harmful if a long period of dormancy is suddenly interrupted by a rash of the wrong types of inquiries — finance-based inquiries — which can signal your company is undergoing financial distress.