Why are large corporations allowed to report deadbeats to credit bureaus and small businesses can't?

Question

I am a small Business owner and have been burned by a client that I was contracted to do work for. He admits the work was done properly he just said he doesn't have the money to pay.. I think I should be able to report him to a major credit agency. After all I did extend credit to him. I get half the contract amount up front and the other half upon completion.

Answer 1

You can - but you have to subscribe to the credit bureau's service in order to do so.

Answer 2

Small businesses can report to the credit bureaus.  You just have to sign up and pay the fees.

In your case, going to court and getting judgment would show up on his credit report as a public records item and it would stay for 10 years.  

You could also hire or sell the debt to a collection agency.  You wouldn't get the full amount owed, but the collection agency will certainly report to the credit bureaus.

Answer 3

You can this way: take him/her to small claims court and get a judgment, which  would be noted on the person's credit files.

Be sure to  get  some sort of deposit up front first...at least one-third...If you don't you run the risk of the buyer telling you that he/she is flat broke once you've delivered your product.

Answer 4

Small businesses can you just have to be a member of one of the credit bureaus. You should be any  way so you can run credit checks on your customers.

Answer 5

You can contact the three bureaus and make the report. There will be a fee.

Large Financial Institutions pay huge money each month tho retrieve and report this data. So, it's a cost of their doing business.

Admitted, the small guy is at a disadvantage.