How to Report a Customer to a Credit Bureau

Do not hesitate to report past-due customers.

Bad debt is expensive. As a business owner, if you are not receiving payments from a customer, you might not be able to meet your expenses. Bad debts can drive a small business out of business. One of the best ways to prevent that from happening to you is to check the credit of anyone wanting to buy from you. If you have a customer who does not pay, do not hesitate to report that customer to a credit bureau.

Instructions

1. Hire a collection agency that will charge a fee only if it succeeds in collecting the debt. Confirm that the agency is a member of all major credit bureaus; it will report the debt the those bureaus. Provide copies of documentation on the debt and all attempts to collect. Include the original invoice, letters to the customer, expenses you have incurred in your attempts at debt collection, and information on any partial payments.

2. Sign up with a credit reporting service so you can report bad debts to the three major credit bureaus in the proper format.

3. Research the requirements for direct membership with one of the credit bureaus. Membership enables you to report bad debts directly to the bureaus. Ask about membership costs and other fees you might incur as a member.

References

• Financial Web: How To: Report A Delinquency To Credit Bureau Agencies