Who Is Looking at Your Commercial Credit Report?
Most of us know that our personal credit score affects our ability to access credit and reach our financial goals. The same is true of a business’s commercial credit score. These reports are more than just a list of whether we paid a bill late; they provide a vast range of data that paints a strong picture of our business operations and overall health.
Have you checked your business’s commercial credit report lately? Your vendors and customers probably have. What is that report telling them?
Cleaning your own house
When you review credit reports of your customers, you use that data to evaluate whether and how to extend them credit. You may use the information to make decisions about whether to continue a relationship with certain customers or pursue additional business with them. As a savvy business operator, you likely also review credit reports for vendors and shippers to maintain a healthy supply chain and cash flow.
Your partners, customers, and prospects are likely doing the same with data about your business.
A commercial credit report about your own business tells you what basic business information other companies see, including:
- Corporate registration and contact information
- Key personnel
They’ll see financial details, such as:
- Detailed financial payment trends
- Predicted payment behavior
- In-depth credit history
- Banking, insurance, and leasing information
- Financial information from Standard & Poor’s
And, critically, it allows you to see reports about:
- Bankruptcy filings
- Judgment filings against the business
- Tax lien filings levied against the business
- Credit inquiries made in the last nine months
- Uniform Commercial Code filing information
Verifying that all the information is correct and up to date is essential. The report can help you identify whether you’ve been a victim of commercial credit fraud, and you can compare your company to others in your industry.
All of this information can help you make better decisions regarding the finances of your business — which, in turn, can help improve the business’s credit report.
Actively monitoring your commercial credit rating will help you better control your credit risk and help you develop a plan to build your financially stable business.
Just as we’ve suggested you monitor your vendors, customers, and partners, others are likely monitoring you. If your credit report isn’t favorable, you may be losing business and potential partners without even knowing it.