8 Ways to Clean up Your Business Credit Report
A complete and accurate business credit report is like a gourmet meal to a loan underwriter. Your business credit report verifies the information in your credit application and business plan. Similar to a personal credit report, if not managed, the business credit report is often inaccurate, incomplete, and negatively impacts your company’s image.
To maximize your chances of approval for a business loan or equipment lease, ensure your business credit report is accurate and complete from the beginning.
How do business credit reports work?
Business credit reports are sold to credit underwriters by lenders and equipment lessors. Dun & Bradstreet is the largest supplier, but not the only one. The information in the report comes from various public and non-public sources. Lenders provide business credit information voluntarily, and public information is obtained from sources like the Secretary of State or the Division of Corporations.
However, it’s important to verify the information and add as much detail as possible.
How to clean up your business credit report
The first step is to obtain a free copy of your business credit report. Verify or correct the information online. Follow these tips:
1. Ensure the report accurately shows the business name and any trade styles (DBA’s).
2. Verify the physical business address and include the website address.
3. Analyze the payment score for accuracy. Does it reflect payment promptness? If not, challenge any entries that display late payments, providing proof.
4. Confirm the business ownership and accurately state the business entity type (partnership, LLC, corporation), and time in business.
5. Add the names of company officers, their titles, business functions, and work experience.
6. Include the company’s history and recent events, such as location changes or ownership transitions.
7. Decide whether to add financial information, keeping in mind its sensitivity if accessible by everyone.
8. Review liens, lawsuits, and loans to ensure accuracy.
Managing your business credit report is a good practice. Schedule a follow-up in a year to review any changes or add new information.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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