How to effectively monitor your business credit report

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How to effectively monitor your business credit report

Published By Nikeya Williams at September 10, 2017

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It’s imperative that as a business owner that you keep a close eye on all the content that shows up your business report. The reason for monitoring your business credit report is that your business credit report directly impacts the financial and funding ability of your company. It doesn’t only affect a small portion of your business, but it will affect the financing costs, credit terms, interest rates, insurance premiums, credit limits, and so much more in your business.

Keeping up-to-date and monitoring your business credit report makes it easier to see all the factors that are affecting your report and scores. Every day, information on your business credit scores changes. There are constant changes to transactions, outstanding balances, and whether you pay invoices on time. With all these changes, you want to be able to know what’s currently on your business credit report.

It’s good to have access to your business credit profile where you can see all the ongoing transitions on your company’s credit file. For example, let’s say that you recently paid off an outstanding invoice, it would a better to wait until you see if your business credit report reflects the payment on the invoice. In order to maintain and stay updated on your business credit report, you’ll need to subscribe to business credit monitoring service that will help you monitor all the activity on your business credit report.

Having a credit monitoring service to protect your company’s credit information, is something that most business owners need. There’s growing number of businesses that face business identity theft. According to Dun & Bradstreet, there’s a disturbing trend of business losing up to six figures due to criminal activity. Constantly monitoring your business credit report gives you the ability to see if there are any criminal activity happening to your scores, filings, and newly opened accounts associated with your company.

Once your business credit report is up-to-date, business credit agencies final decisions will impact:

How much credit a supplier will lend to you

It will affect your interest rates, whether you will pay high-interest rates, and it will affect the terms and conditions for loans and credit cards

It will determine what your insurance premiums will be for the year

How potential investors will view your company

The three major credit bureaus that you want to use to monitor your business credit is Dun & Bradstreet, Experian Business and Equifax Small Business.

Dun & Bradstreet Business: D&B monitors changes in your credit scores and ratings. To help ensure that your up-to-date with business credit information D&B anticipates all possible reactions from current partners and lenders, and they track how many times your business credit report is being used. You can get alerts when your company’s credit scores and ratings change when others have made purchases on your business credit file, which allows you to have valuable insight to help protect your business.

Experian Business: Experian will monitor and send alerts when changes in your business credit file have changed, and they will help you keep track of your business credit score. You’ll also be able to screen other business to obtain background information including liens, judgments, and bankruptcies. That way, as a business owner you can avoid making a bad decision to work with companies that don’t use good financial judgment. Also, you can get online and access your business report instantly through Experian.

Equifax Small Business: Equifax monitors your credit activity of all your business customers, partners and suppliers. You can choose to set up the Business Credit monitor alert where you can get alerts for any bankruptcy events reported, you can get derogatory alerts including judgments, liens, delinquencies, and charge-offs well as delinquent amounts greater than or equal to 60 days past due. You can also get an alert when your Equifax score drops 20 points or more.

Monitoring your business credit report can seem hard and time-consuming, but there are so many new tools that Experian, Equifax and Dun & Bradstreet provides you with so that it’s easy for you to receive updates, alerts and information when there’s a change to your business report. It’s important that you stay updated with all the information reported on your business credit report, everything that’s reported on your business credit report can either impact your business in a positive or a negative way. If you haven’t signed up for alerts

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