Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the easy-accordion-free domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/rwpc324465/public_html/rwblog/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the otter-blocks domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/rwpc324465/public_html/rwblog/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wordpress-seo domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/rwpc324465/public_html/rwblog/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the neve domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/rwpc324465/public_html/rwblog/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902

Warning: Cannot modify header information - headers already sent by (output started at /home/rwpc324465/public_html/rwblog/wp-includes/functions.php:6131) in /home/rwpc324465/public_html/rwblog/wp-includes/rest-api/class-wp-rest-server.php on line 1902
{"id":74270,"date":"2020-12-16T13:20:54","date_gmt":"2020-12-16T13:20:54","guid":{"rendered":"http:\/\/www.ryanandwetmore.com\/?p=74270"},"modified":"2022-06-27T21:53:18","modified_gmt":"2022-06-27T21:53:18","slug":"understanding-business-credit-reports","status":"publish","type":"post","link":"https:\/\/www.randwpc.com\/rwblog\/understanding-business-credit-reports\/","title":{"rendered":"Understanding Business Credit Reports"},"content":{"rendered":"\n\n\n\n\n

A Complete Guide to Business Credit Reports  <\/strong><\/h2>\n\n\n\n

Just like you, your business and all the other registered businesses have a credit score that is forged through a business credit report. While there are a handful of options available on the market such as Experian, Nav, Equifax, and Dun & Bradstreet, many of them provide the same feedback. Companies small and large turn to credit reporting agencies to obtain a credit score of their business or that of a competitor, partner, or potential customer. Agencies like the ones mentioned above gather public and private information to create an extremely detailed and thorough credit profile comprising of businesses across all industries.  <\/p>\n\n\n\n

Why is a Business Credit Report Important?<\/strong>  <\/h2>\n\n\n\n

As a business owner, you will find yourself partnering with third parties to achieve a business goal where these initiatives are bolstered by aid from lenders, suppliers, or both. However, before a supplier or lender agrees to work in concert with your business, they will almost always check a business credit report when determining if your business is a suitable fit. <\/p>\n\n\n\n

Furthermore, a displeasing or below-average credit report can prevent businesses from receiving a line of credit or from obtaining material from a manufacturer. In this dynamic where resources and capital are being exchanged, vendors and lenders leverage credit reports to draw conclusions on how reliable potential business partners are.  <\/p>\n\n\n

\n
\"business<\/figure>\n<\/div>\n\n\n

Who Uses Business Credit Reports? A Deeper Look<\/strong>  <\/h2>\n\n\n\n

In addition to the businesses that file to receive a report, there are other entities that also benefit from business credit reports: <\/p>\n\n\n\n

Lenders<\/strong>\u2013 Lenders use credit reports to evaluate new credit applicants and determine how much credit is appropriate to extend. Lenders will also use these reports to\u202fmonitor existing debtors and examine matters more closely such as last payments made, existing balance still owed, and more. <\/p>\n\n\n\n

Suppliers<\/strong> \u2013 Suppliers leverage business credit reports to make decisions about extending businesses materials and goods. Suppliers want to see and verify that a business is able to make timely payments towards the goods\/materials they received.   <\/p>\n\n\n\n

Potential customers<\/strong> \u2013 Potential customers utilize business credit reports to gain insight into the credibility of a business. This is often used in the Government Contracting<\/a> space when a request for proposal (RFP) is up for discussion. <\/p>\n\n\n\n

Business owners<\/strong> \u2013 As mentioned above, business owners utilize these reports to monitor financial stability and to understand the fitness of their business from an objective lens. <\/p>\n\n\n\n

General Sections of a Business Credit Report<\/strong>  <\/h2>\n\n\n\n

If your business is considering filing for a business credit report, there are four sections of the credit report you should expect to receive and review: <\/p>\n\n\n\n

Company Profile<\/strong> \u2013 The company profile is indicative of what it sounds like: an overview of your business that includes information such as address, incorporation information, industry classification, and ownership.  <\/p>\n\n\n\n

Financial Stability <\/strong>Risk Assessment<\/strong> \u2013 In this section, businesses can find comprehensive data for evaluating risk and making critical business decisions. The intelligence includes: <\/p>\n\n\n\n

Trade Payments<\/strong> \u2013 The trade payments section provides insight to credit professionals by displaying payment behavior of how a business has made payment to third parties in the past.  <\/p>\n\n\n\n

Public Filings<\/strong> \u2013 In this portion of the report, business credit reporting agencies set forth all business-related bankruptcy information from every bankruptcy court in the United States, revealing lawsuits, liens, judgments, and more.  <\/p>\n\n\n

\n
\"understanding<\/figure>\n<\/div>\n\n\n

What Causes a Low Business Credit Score?<\/strong>  <\/h2>\n\n\n\n

When reviewing and analyzing your business\u2019s credit report for the first time, you may find yourself overwhelmed by the volume of information. To make things very simple for you and your business, there are two common factors that generally cause your business to have an unsatisfactory credit score: <\/p>\n\n\n\n