Why is it important to monitor my business credit report?
There are four important reasons to monitor your business credit report:
1. Avoid unpleasant surprises: Your business credit profile is often the basis for decisions others make about your company. It is used to determine how much money lenders will loan you, how much credit suppliers will extend to you, what interest rates you'll be charged and what you'll pay for insurance premiums. That's why it's important to know what's in your business credit report and monitor it for accuracy and changes.
2. Protect your business: Business identity theft and fraud losses cost American companies billions each year. Both can negatively impact cash flow, cause problems with creditors and suppliers, and even affect your business's reputation. A great way to help protect yourself and your business is to regularly check your company's credit report for unusual activity that might indicate fraud.
3. Correct mistakes: Your credit report paints a picture of your business for the world to see. Out-dated or incorrect information can give the wrong impression about your business resulting in unfavorable decisions that negatively impact your bottom line. By keeping track of your business credit report you can identify inaccuracies and request corrections.
4. Build your score: A poor business credit score can make it difficult, or even impossible, to get funding and obtain lines of credit for your business. The first step in improving your score is to become aware of the factors that drive your current company credit score. By managing these more effectively you can make a positive impact on your credit score, which can lead to more opportunities to grow your business.