The Benefits of Monitoring Your Business Credit Report
The information that business reporting agencies publish about your company shows potential creditors how well it has performed in meeting financial obligations to lenders, suppliers, vendors, and other companies. The information contained in these reports changes frequently due to payment activity, outstanding balances, and new transactions.
Like your personal credit report, the information in your business credit file isn’t always accurate. This is just one reason why monitoring it regularly is so important. You wouldn’t want a reporting error to prevent your business from obtaining the funding it needs. It’s also important to keep in mind that the information available in your business credit report impacts the following:
- Whether your business receives an approval or denial for credit
- The amount of credit extended
- The rate of interest you pay on borrowed money
- The amount of some of your insurance premiums
Other Benefits of Business Credit Monitoring
Checking for accuracy is the biggest reason that companies request to see a copy of their credit file. If you do spot an error, Dun and Bradstreet and other business credit providers should list who to contact and what information to include. It also gives you the opportunity to review legitimate report changes and determine how they might impact your business. If necessary, reviewing your credit file gives you the information you need to start making some financial changes.
When you review the credit file for your business, you can see who has requested a copy of it and determine whether they have a legitimate need to do so. Additionally, a regular review helps to prevent identity theft by alerting you to suspicious actions and inquiries.
Need Help Improving the Financial Help of Your Business?
Monitoring your business credit report is just the first step towards improving your company’s financial situation. We invite you to contact Approved Business Lending to request an appointment with a financial advisor to uncover more useful tips to achieve maximum profitability.