Business Credit Information

We’re all familiar with our personal credit and we understand that they are private – no one can access them unless the consumer prior authorization. Commercial credit is a whole different story – business credit is highly unregulated and business owners are often unaware of it’s importance. Many owners do not realize that anyone can review their credit at any time. It could be a potential client, lender, or a competitor. Personal credit reports and scores are a hot topic these days and there is a wealth of information available online to help educate consumers on how they work, their significance, and regulations pertaining to them. When a bank rejects a consumer for a mortgage, the law requires the bank give an explanation for the rejection and the credit score used in the decision making is supplied to the consumer.

Opposing rules apply for business lending and business credit information. When applying for a business loan a bank doesn’t need to divulge if it used a copy of your business credit reports, scores, and indexes to make a decision. If businesses actually knew how easily accessible a copy of their business credit was and how limited and poorly the scores might reflect on them, they would be running to get a copy of their Dun & Bradstreet, Experian, and Equifax reports.

Building a well-balanced and positive business credit profile can be a great asset for a company. Many business owners and professionals believe if a company has credit it will automatically be listed on their credit profile and reflect on their score. This is the furthest from the truth – many vendors, lenders, and creditors do not report to the bureaus and it can be difficult for companies to figure out which ones do. Having a professional credit expert guide and build the right credit can give a company an edge in getting loan approvals and the best interest rates.