Adam Tijerina asked:
You know you have personal credit reports and credit scores, but were you aware that if you run a business, you also have a business credit report and score? If you run a small business, find out why it is important to access your own reports and those of your customers, vendors and suppliers and how that information can affect whether or not you get access to an increased credit line or more stringent credit terms for your company.
Your small business credit report and score can indicate to a potential customer, vendor or supplier your credit worthiness and can have factor in the what kind of credit terms you get or if you get any financing at all. They will see how many accounts you have opened, how many of those accounts are past due, the average amount you owe, and whether you have ever been past due on any of your accounts.
You can also get access to public records such as bankruptcies, judgments, liens, alternate company names and other DBAs all on a small business credit report.
All this information is then compiled and given a credit risk score by Equifax which can indicate how likely a company will fall behind over 90 days on their bills or result in a charge off over the next year. Wouldn’t this information be useful in deciding on who to do business with?
Equifax also provides a business failure score which can predict how likely a big business will fail and have to file bankruptcy over the next year.
There are no free business credit reports as their are with personal credit reports. You can chalk up the cost of this information as a cost of doing business which can save you thousands of dollars by going with a responsible vendor or supplier or new customer who will not default on their payments.
Buying small business credit reports and scores can help you make smart decisions about who you decide to do business with and can prevent you from working with an unreliable customer, vendor, or supplier who has a lousy payment history and keep your cash flow low.
Allison
You know you have personal credit reports and credit scores, but were you aware that if you run a business, you also have a business credit report and score? If you run a small business, find out why it is important to access your own reports and those of your customers, vendors and suppliers and how that information can affect whether or not you get access to an increased credit line or more stringent credit terms for your company.
Your small business credit report and score can indicate to a potential customer, vendor or supplier your credit worthiness and can have factor in the what kind of credit terms you get or if you get any financing at all. They will see how many accounts you have opened, how many of those accounts are past due, the average amount you owe, and whether you have ever been past due on any of your accounts.
You can also get access to public records such as bankruptcies, judgments, liens, alternate company names and other DBAs all on a small business credit report.
All this information is then compiled and given a credit risk score by Equifax which can indicate how likely a company will fall behind over 90 days on their bills or result in a charge off over the next year. Wouldn’t this information be useful in deciding on who to do business with?
Equifax also provides a business failure score which can predict how likely a big business will fail and have to file bankruptcy over the next year.
There are no free business credit reports as their are with personal credit reports. You can chalk up the cost of this information as a cost of doing business which can save you thousands of dollars by going with a responsible vendor or supplier or new customer who will not default on their payments.
Buying small business credit reports and scores can help you make smart decisions about who you decide to do business with and can prevent you from working with an unreliable customer, vendor, or supplier who has a lousy payment history and keep your cash flow low.
Allison
