Have you been affected by a disaster?
Industry Word

Blogs.Industry Word


Build Business Credit Reports You Can Be Proud About Having

Comment Count:

Comments welcome on this page. See Rules of Conduct.

Build Business Credit Reports You Can Be Proud About Having

By Marco Carbajo, Guest Blogger
Published: February 11, 2014

Business credit reports play an integral role in credit risk assessment and company research. Access to detailed information about a business such as background info, financial data, payment trends, company size, payment history and public filings provide the necessary details lenders, suppliers, investors and potential business partners need. build business credit

Your company credit reports and scores are constantly changing based on a variety of factors, including payment history, number of trade lines and outstanding balances. It’s essential to keep a close eye on your reports and watch out for changes that could affect your ability to acquire credit.

It’s vital to build and maintain business credit reports you can proud of. Did you know potential business partners and investors may evaluate your company credit files to acquire background information on your business, evaluate financials and review what other companies you're working with?

Building and improving the depth and diversity of your business credit reports will have lasting benefits financially and provide greater financing opportunities. While it may take time to build business credit that has depth and diversity, it’s equally important to take the time to manage and protect the good credit your company has already established. To accomplish this you should monitor your reports on a regular basis.

Here are five reasons to build strong business credit reports:

  1. Creditworthiness - Lending institutions, creditors and suppliers will check your business credit reports prior to extending or increasing your company’s line of credit. Additionally, they monitor your reports routinely to assess your company's ability to pay and may adjust credit terms prior to financial difficulties emerging.
  2. Customer acquisition - It’s not uncommon for potential customers to check a business's credit record to see if a company is a legal and credible business before working with them. This is not an unusual practice in today's business environment.
  3. Partnerships & joint ventures - Various other companies could evaluate your reports if they are thinking about collaborating with you. For example, by recognizing one of the most creditworthy companies, a business could supply first-time consumers a line of credit at very little risk.
  4. Insurance premiums - Company insurance policy costs are based upon information acquired from your company reports. Insurance companies make use of business credit reports for underwriting insurance policies. Factors that play a role in just how they forecast danger include industry classification, payment trends, trade experiences, and debt to credit ratios.
  5. Government contracts - Federal government departments also assess company credit records for companies wanting to do business with the government, collecting taxes, and fulfilling government deals. For instance, in order to obtain a federal contract your company must be registered to start marketing to government agencies. This registration process includes getting a DUNS number from Dun & Bradstreet.

It's crucial to keep track of the health of your business credit reports as it is the basis for decisions other businesses, lenders, suppliers, government agencies, insurance firms and consumers make concerning your company. Monitoring your reports is important so you should regularly check and ensure details regarding your company are accurate and up to date.

About the Author:

Marco Carbajo
Marco Carbajo

Guest Blogger

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in 'Fox Small Business','American Express Small Business', 'Business Week', 'The Washington Post', 'The New York Times', 'The San Francisco Tribune',‘Alltop’, and ‘Entrepreneur Connect’.


Apart From Creating a Credible Business Partner, it also enables company obtain favourable Business terms in Credit business and hence Frees up your working capital, which in turn will have a positive impact on your Sales and ineffect your profits or bottom line
Thank you for a most useful article. Having a strong credit report is indeed critical to developing strong supplier or bank credit, but also very important in building relationships with potential customers, especially in B2B sales. Additional factors that support a strong credit report are having strong brand recognition, a competent (and current) online presence, and even your membership in relevant trade associations. You mentioned that you can get a free DUNS number at Dunn and Bradstreet. It is also critical to monitor your credit score – For example, most small businesses don’t know that you can do this for free from Dunn and Bradstreet also.
Indeed a credit report is a very powerful tool which speaks for itself. If you have managed the business well, it will be reflected in your business credit report. As mentioned in the article, this report comes in very handy if you intend to bid for govt contracts and if you are looking for finance for expansion. A good credit report will nor only help you get finance but also enable you to raise it at competitive rates.
credit institutions, especially in the development phase of strong retail banking segment.
Exactly,Report regularly can help us figure out the problem soon inadequacies (for company). Financial issues are always affected by many aspects
Credit score company is expected to act as a bridge between new borrowers and credit institutions, especially in the development phase of strong retail banking segment.
Really it is very much necessary to keep an eye on all the current changes and reports. As everyone who will think to join your company whether as a customer or partner, will definitely like to check the business's credit record to see if a company is a legal and credible for business.
I too believe that maintaining a good credit report is essential for running a business in a healthy manner. As lack of it can create much troubles then actually expected.

Leave a Comment

You must be logged in to leave comments. If you already have an SBA.gov account, Log In to leave your comment.

New users, Register for a new account and join the conversation today!