How does Dun & Bradstreet business credit benefit a firm? Well according to Dun & Bradstreet, business credit is of high value to a company’s success, here are just some of the reasons why a healthy business credit profile is vital for a business:
Business financing: When business credit ratings are excellent, lenders and suppliers will give favorable terms to purchase on credit. Without a business credit rating or the right business credit rating, a supplier may require cash on delivery or ask for a personal guarantee. This could cause longer waits for merchandise and less cash flow. Lenders look at business credit and in some cases they review personal and business credit. If you are looking for a small business loan most lenders review the FICO SBSS Credit Score.
Supplier contracts: If your company wants to do business with government agencies or Fortune 500 companies, there is an extremely high chance they will review your business credit reports. These types of accounts normally look at the DNB Supplier Evaluation Rating (SER).
Business separation: A business credit report enables a complete separation between the personal credit reports of the small business owner to the reports established by the company itself.
Credit protection: With favorable business credit ratings, a business can obtain financing from many companies willing to grant credit without a personal credit check or guarantor. This allows a business to acquire products and services it needs on credit without putting the business owner’s personal credit at risk.
Business partners: Business credit reports are frequently being pulled by potential business partners so they can find out about a company’s credit history and decide if the business is capable of being a sound business partner. Unlike personal credit reports, business credit reports are available to the public and can be purchased without the consent or knowledge of the firms info that is being viewed. This means any viewer of a business credit profile can be making decisions about the company that could benefit or compromise it’s future success.