Why is it Important to Monitor Business Credit

By now you probably know that business credit will help grow your company’s financial freedom and protect you from personal liability on commercial debts. So, learning that your business credit scores are poor can deliver a blow to financing and expansion plans. It is so important to monitor business credit reports so you can stay on top of any negative information that might appear.

Here are a few reasons why monitoring business credit is vital:

  1. Protect your business: Fraud can cost you a lot of time, money, and frustration. By monitoring your credit, you can stay a step ahead of criminals and protect your reputation. Often the first signs of fraud show up on credit reports, if you notice odd inquiries, newly opened accounts, or charges to a dormant credit card – you might be a victim of business identity theft.
  2. Fix mistakes: By tracking your business credit profile you can catch mistakes before they cause too much damage. If you notice negative information, collect data from the report, circle the account, and reach out to experts in business credit repair to see how the information can be removed.
  3. Establish your scores and profiles: A poor or non-existent credit profile will inhibit your ability to get affordable financing, loans, and desirable payment terms. Through monitoring your credit, you can see how much progress the reports are making. You can see which accounts are reporting and weigh whether you need to establish more creditor relationships.
  4. Avoid unwanted surprises: Monitoring business credit will give you peace of mind, so you know what to expect when shopping for a loan, insurance policies, or new lines of credit.

You cannot trust the business credit bureaus to protect your company, only you can do that by being diligent and aware of your credit. There are no laws that protect you from unjust management of your business credit. Creditors can deny you with no explanation and reports can be pulled with no prior approval. Many people turn to outside vendors for monitoring their credit, this way they have the peace of mind knowing their credit is safe and can still devote their time to operating and building the company.