Are you wondering how banks and lenders will look at your credit worthiness? A business credit report is an important tool used by institutions to see how you stack up and if you are a valid investment. This report will look at how well you meet payments and other necessary obligations based off of your payment history and other public information. If you are looking to get funding, it is very important this report reflects you positively. Your business credit report will influence financial decisions such as interest rates you will receive, repayment plans, insurance, how much credit or funding you will be given, and even how customers view your business.
Where is the information on these reports being pulled from? Major business credit reporting agencies such as Dun & Bradstreet, Experian Commercial, and Equifax Small Business pull data from several sources to compare businesses and create their reports. The information on these reports deals with the history of your business, quantitative data such as number of employees and profits, operational data, and more. The core information stays consistent no matter who does your report.
Your basic information such as name, address, ownership will be displayed first. This will be followed by financial data, then payment history. This shows your invoices, outstanding balances, and credit limits. This part of the report may also pull from public records on collections and bankruptcies. In the end you will be given your business credit score, indicating your financial standing.
Business credit reports and scores are a measure of a company’s financial stability. The main goal for small business owners should be to establish records of timely payments with all of their financial obligations in order to establish a strong business credit report and score.
Once you have your credit score, put it to use with Cascade Capital Funding. We can help you make the next step in your financial journey.