How Do I Avoid Mistakes and Omissions in My Business Credit Profile?

Your business credit profile has information that is both self-reported and third-party reported. You can proactively manage your business credit profile by ensuring it is always complete, accurate, and timely.

Your business credibility can be enhanced when the information on file is correct and up-to-date. So it is essential that your business credit profile changes with your business.

Public companies typically have an easy time communicating changes to the business community; most have teams dedicated to that purpose, and these businesses are obligated to report changes to the public. But for most small businesses, the onus is on the business owner to ensure that changes (e.g., new leadership) are reported in a timely manner.

Just as important as accuracy and timeliness is the completeness of your profile. When there is little or no information in your business credit profile, it can suggest that your company may be a risky proposition for potential creditors. Incomplete information can be as harmful as poor credit activity; in risk analysis, unknown quantities are considered risky. For these reasons, it is essential that you establish your business credit profile, populate it with as much information about your business as you can, and ensure that you update and review it regularly.

Managing your business credit profile is an ongoing responsibility and can be accomplished by doing the following:

• Monitoring the information that is contained in your credit report for changes
• Supplying appropriate information about your business to D&B
• Getting your key vendors to report your payment history with them

By managing your business credit profile, you will not only avoid mistakes and omissions but you can be confident that your business is always being evaluated in the best possible light.