Do you know what your business credit report says about you?
You should.
When you are asking for credit from another business or looking for a loan, the supplier or lender will likely pull a credit report for your business. You will want to know what they see before you apply for a loan or fill out a credit application.
The information in the report can have a major impact on:
- The amount of credit issued to your business
- The repayment terms
- The interest rate applied to your credit or loan
- Whether you have to put down a deposit, purchase insurance coverage, or provide collateral
As you can see, your business credit report can have a big impact on your company. However, there are other important reasons to keep an eye on your financial health and pull a credit report for your business. Here are a few of the most important ones.
Make Sure Information Is Accurate
Would it surprise you that one study showed that 44% of credit reports have errors? It might be minor like a misspelling or missing information, but you want to make sure the information included in the report is accurate. Mistakes do happen, especially for businesses that have similar names.
You should pull a credit report for business periodically and check for accuracy. If you find a mistake, you will want to deal with it right away. If you believe there is inaccurate information on your business credit report, you can submit a dispute through each of the credit reporting agencies. They will review your dispute and investigate it within a short time. The more supporting documentation you have, the easier it will be to correct it.
Keep in mind that the credit bureaus want their reports to be accurate, so they are motivated to correct any misinformation.
Stay Up-to-Date on Changes
Your credit score is a compilation of many factors, including the amount of trade line credit you have, whether you have a track record of paying your bills on time, and other factors. If there is a change to your credit score, you want to know.
Declining credit scores can make it more difficult to get credit or good terms. If you have a significant increase in your business credit score, you may be able to negotiate better rates, higher credit limits, or more favorable repayment terms.
Safeguard Your Personal Assets
Without a strong business credit score, you might be asked to personally guarantee loans or use your personal credit score when applying for business credit. This could put your personal assets and personal credit at risk if your business defaults.
Prevent Business Fraud
There has been an increase in business impersonation fraud in the past few years. Scammers may use your business name to try to get loans or use your reputation as a way to trick suppliers into sending them products. It can happen without you knowing until you get a delinquent bill or your credit score plummets. By monitoring your business credit report, you may get an earlier warning about malicious activity.
According to the Federal Trade Commission (FTC), there were more than 330,000 business impersonation scams in 2023, totaling more than three times the number reported in 2020. If someone else is using your good name for bad deeds, it can hurt your reputation for years to come.
How to Check Your Business Credit Report
Even if you are not planning to apply for a loan or business credit, you should check your credit score at least once a year, although more frequent checks are better.
How to check a business credit report is surprisingly easy. You can go to Command Credit and purchase a business credit report for your company right now.
Command Credit offers instant download for business credit reports from any or all of the three major credit reporting agencies:
- Dun & Bradstreet
- Equifax
- Experian
At Command Credit, you can pull a credit report for business without having to sign up for a subscription service. You just enter your business name and a few details to verify your identity, pay online, and get your report right away with no waiting.
Pull your business credit report today at Command Credit. Have questions? Give us a call at (866) 703-2831 or contact us online.