What To Know About Business Credit Reports
Business credit reports are just like personal credit reports. They are used to determine whether or not a business is eligible to receive access to money, based on their history with others lines of credit.
Just like with personal credit, there are business credit reporting agencies. Equifax, Experian, and Transunion report on both personal and business credit activity. However, the most popular agency in the business world is Dun & Bradstreet (D&B). They have over 140 million business records worldwide, and are a global leader in the industry.
If a business has good credit history, meaning that they pay their bills on time and have low debt-to-income ratios, they are likely to be approved for more access to credit. If, however, they have bad credit history based on reporting, a their application can be turned down and/or existing credit lines can be reduced.
Business credit reports can also be used to determine whether or not a company is trustworthy to do business with. For instance, major retailers like Wal-Mart and Target require that businesses have a reputable credit report before they buy products from you to resell in their stores.
Even major companies in other countries, such as China or England, will utilize business credit reporting agencies before they conduct international business. This helps them to make wise decisions about companies that they've never heard of.
To protect your credit, make wise financial decisions and make your loan payments on-time. Also, be sure to take care of your personal credit - as this can often be used to determine if you'll ever have access to business credit. If there is an error on your business credit report, be sure to call the agency so that it can be corrected.
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