Small Business Credit Reports and Scores

You know you have personal credit reports and creditAll this information is then compiled and given a credit
scores, but were you aware that if you run a business,risk score by Equifax which can indicate how likely a
you also have a business credit report and score? Ifcompany will fall behind over 90 days on their bills or
you run a small business, find out why it is important toresult in a charge off over the next year. Wouldn't this
access your own reports and those of yourinformation be useful in deciding on who to do business
customers, vendors and suppliers and how thatwith?
information can affect whether or not you get accessEquifax also provides a business failure score which
to an increased credit line or more stringent creditcan predict how likely a big business will fail and have
terms for your company.to file bankruptcy over the next year.
Your small business credit report and score canThere are no free business credit reports as their are
indicate to a potential customer, vendor or supplier yourwith personal credit reports. You can chalk up the cost
credit worthiness and can have factor in the what kindof this information as a cost of doing business which
of credit terms you get or if you get any financing atcan save you thousands of dollars by going with a
all. They will see how many accounts you haveresponsible vendor or supplier or new customer who
opened, how many of those accounts are past due,will not default on their payments.
the average amount you owe, and whether you haveBuying small business credit reports and scores can
ever been past due on any of your accounts.help you make smart decisions about who you decide
You can also get access to public records such asto do business with and can prevent you from working
bankruptcies, judgments, liens, alternate companywith an unreliable customer, vendor, or supplier who
names and other DBAs all on a small business credithas a lousy payment history and keep your cash flow
report.low.