What Your Business Credit Says About You

A business credit report is just as important as your personal credit report. Knowing what is on your report can save you a lot of money through finance charges and interest rates. It is important to understand what is on your business credit report and how to keep it up to date.

Much like your personal credit report, a business credit report will provide lenders information into your spending habits, your ability re-pay loans and even how much credit has been extended to your company.

If there ever comes a time that you wish to apply for a business loan or have credit extended to your company, you’ll want to make sure that the information they will find on your report is up to date and reflects current statuses of each of your accounts.

What is on a business credit report?

Credit Score

A credit report will include your full business name, the company EIN, start year, current and previous addresses as well as the names of partners you are in that business with. That means if your business partner makes a negative financial decision on behalf of the company, it will appear on your business credit report.

Anyone considered to be financially responsible for the company is affected as a whole and not individually. This is important to know when giving access to your financial accounts to anyone in the company.

Your business credit will also reflect any bank accounts, credit-card accounts, lender information, when the accounts were opened, your credit limits and your payment patterns.

It doesn’t stop there. If there are outstanding liens or judgments against your company or you have previously filed for bankruptcy; it will all appear on your credit report. Also, anyone that has requested to view your report will be listed for your verification as well. This way you always know who is running your business credit.

Who reports to your credit report?

Who Reports

A credit report lists all credit accounts in good or bad standing, outstanding loan amounts including the payment history of that loan and even how often you make payments, whether on time or late. Those companies that have extended credit to your business will report to the agencies if you are making payments on time or falling into default.

Who can view your credit report?

Typically, the only time another party can view your business credit report is if you have applied for a loan or credit on behalf of your company. Even if you are only looking to rent office space, the management company will pull your credit to ensure you have the ability to pay the commercial rent.

What if there are errors on your business credit report?

ErrorMistakes happen but if the ability to catch those mistakes quickly and easily can be determined by how often you check the report. In the United States there are two main agencies to obtain your business credit report from. These are the same companies you’ll contact to update your business profile.

Experian

PO Box 2104

Allen, TX 75013

(888) 397-3742

Website

Dunn and Bradstreet

103 JFK Parkway

Short Hills, NJ 07078

(877) 643-6063

Website

How do you keep your business credit in good standing?

It’s not as difficult as you think to keep your business credit in good standing. Paying bills on time is the number one way to make sure your reports reflects responsible spending. You’ll also want to make sure you don’t have more credit accounts than your business needs. By having too many open accounts, a lender may determine that you are close to being over extended and could deny you the credit you are seeking. Obtain a copy of your business credit report at least once a year to ensure it is accurate.

Shelby Adams is a freelance writer contributing to a variety of online publications using her professional experience as a banking specialist to assist small business owners. Shelby is also a contributor to Cheap Checks Plus Checks Unlimited.