As a business owner you may face certain challenges that require you to seek assistance. If you need to borrow funds from a bank or you need to get some stock for your business on credit, you need to make sure that you check your business credit rating is favourable.
Similarly, if you are looking into getting into business with another company, you’ll want to make sure that you perform a credit check on the business.
Why do you need to run a credit check on a business?
You can avoid unpleasant surprises
This is two-fold. If you are checking your own business’ credit rating you will be able to monitor any inaccuracies on your credit record and correct them. If you are running a business check on another business, which you are looking to work with, this can help you avoid doing business with a shady company.
You can protect your business
By running a credit check you can protect your business from having to deal with unscrupulous business entities.
You can correct mistakes
You can build your score
What information is available in a business credit check?
- A business credit report presents a current, objective picture of how a business manages its financial obligations.
- Public record information
- Company background
- Collections information
- Comparative data that places a company’s payment performance in context with its industry
- Provides a view of a company’s overall financial health
How to run a credit check on a business:
- Conduct an internet search to find out basic information about the business
- Find a website that has a database of information about companies. In most countries, you can run a business credit report through an online credit agency.
- Make sure that you find an agency that is well established and well-known for its credit reporting
- Register with the credit agency online
- Search for the company
- Determine your credit report needs
- Select a credit report
- Pay for and download your report