How trade payments are reported
Short answer: In this guide, "reported" means a payment is passed to a company that keeps records of business payments.
Reviewed by the Red Spectrum Customer Support Team. Last reviewed .
A trade payment
A trade payment is what your business pays a vendor for something it bought. The vendor sends a bill. You pay it. That payment is a trade payment.
What reporting means
When a payment is reported, a record is made of it. Over time, the records can show a pattern, such as bills paid on their due dates. We could not find a primary source that explains the exact steps between a payment and a record, so this guide does not describe them.
What Factiiv says about itself
Factiiv is a company that keeps business records. Here are three sentences from its site.
- "factiiv is a whole new way to establish the credibility of your business."
- "Establish and report the credibility of your business with every transaction."
- "Most business activities are not captured by traditional credit bureaus and do not end up on credit reports."
Read these as what Factiiv says about its own work. They are not a promise from us. For more, see what is Factiiv.
Two kinds of reports
The FTC says, "Individual consumer credit reporting is covered by laws such as the Fair Credit Reporting Act (FCRA)." That sentence is about reports on people. A record about a business is a different thing. If you want to know which rules apply to your own business, ask a lawyer.
Who Red Spectrum reports to
Red Spectrum reports to Factiiv. Every membership payment and every catalog repayment is reported to Factiiv. We do not report to any other company.
Who reads a report
The people who read a record choose what to do with it. A vendor or a lender may look at it, or may not. We cannot say what any one of them will decide. We make no promise about loans, terms or approvals.
What you can do
Pay each bill by its due date. Keep your invoices. Keep a note of each payment. Look at your own records often.
No guarantee of funding, loan approval or credit scores. Payment activity is reported to Factiiv.
You can also read what is a net-30 account and business credit basics.
Questions people ask
Does Red Spectrum report to more than one company?
No. We report to Factiiv.
Does reporting change what a lender decides?
We cannot say. Each reader decides for itself, and we make no promise.
Which payments are reported?
Every membership payment and every catalog repayment is reported to Factiiv.
Sources
- Factiiv · https://factiiv.io · checked
“factiiv is a whole new way to establish the credibility of your business.”
- Factiiv · https://factiiv.io · checked
“Establish and report the credibility of your business with every transaction.”
- Factiiv · https://factiiv.io · checked
“Most business activities are not captured by traditional credit bureaus and do not end up on credit reports.”
- Federal Trade Commission, remarks on the small-business credit reporting study · https://www.ftc.gov/system/files/ftc_gov/pdf/remarks-of-chair-lina-m-khan-regarding-6b-study-of-small-business-credit-reporting.pdf · checked
“Individual consumer credit reporting is covered by laws such as the Fair Credit Reporting Act (FCRA).”
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