Business Credit Report Is Not A Monkey Business
Do you own or operate a business? If you do then you would know that it is important to keep a good credit record and check annual credit report
. Even businesses are not spared from applying for insurance and loans. In fact, almost every business start off with a loan and prospers with still more loans along the way. It does not matter if your business is big or small, you sometimes need to borrow money to improve your business and/or apply for insurance to secure your business.A personal credit report is different from a business credit report because, unlike the former being a report of an individual, the latter is a report of a company. Also, unlike the personal credit report, most business credit information is not protected or subject to the Fair Credit Reporting Act (FCRA). Nonetheless, both are prepared to predict creditworthiness. Dunn & Bradstreet and Experian are the two main providers of business credit report in the United States.
Included in the credit report of your business is its payment history, present credit obligations and previous and existing legal findings. A good credit report will help your business not only to obtain a sizeable commercial loan but also to rent space and other business needs. The requirement for a credit report score before leasing a space to businesses has now joined in the bandwagon. They, as much as your creditor, would now like to know whether or not you can pay rent responsibly.
Keeping a good credit record can be crucial to the success of your business. Each time you apply for insurance, hire a space for expansion, or rent utilities, your credit score will be looked into. This is why it is important that you keep track of your annual credit report so you will know if you need to improve on some areas to make a good score. Today's financial setback has made creditors become extra careful and a slight glitch in your report can lower your credit score.
Lastly, keep in mind that your business deals with other businesses so you can also check the credit report of the businesses you deal with. You should be wary of how risky a business deal might go. Checking a business' credit report usually helps you assess business risk of whether or not to extend terms and credit levels through comprehensive financial information that is included in the report. Reviewing a business' credit report will prepare you for any surprises that they can give and can help you confidently assess risk factors using their credit report score.
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