Your business credit profile is like your business resume; it contains critical information that other businesses use when deciding whether, and on what terms, to do business with you.
Like a personal resume you use to obtain employment, it’s important that the information in your profile is accurate, complete, and timely. No one knows your business better than you. You might have a thriving and profitable business, but when doing business with others, often what matters more is what is documented in the credit report they receive on you. Most companies want a complete and unbiased view of who you are (and how risky it might be to work with you). The business credit scores and reports give companies that want to do business with you a fast, objective measurement of your credit risk.
You should think about your business credit profile in terms of:
- What is in your credit profile? What is it telling other companies about you?
- How do your current business credit scores affect the interest you pay on your existing loans? Did you get the best terms?
- Have your scores improved enough to consider refinancing, or extending your credit lines?
- Do new suppliers extend you favorable credit terms or ask you to pay Cash on Delivery (COD)? Are your competitors getting better terms for the same items?
- Have you lost a deal because your competitor had better credit?
If your answer to any of the above questions is “I don’t know,” your business credit profile may not be working to your advantage — it may actually be costing you money.