Investors regularly request business credit reports. It is important to understand how business credit reporting agencies work, and to monitor your company reports regularly.
Your company reports list what types of credit your company has, the length of time the accounts have been opened and if bills are being paid on time. This information is used to evaluate your company’s credit rating. One negative mark on your credit report can result in less favorable interest rates and credit terms.
Each time a company applies for credit, a credit inquiry is initiated to review the company’s credit rating. Some of the ways credit reporting agencies collect information includes:
-Company financial reports
-Payments and banking information
It is important to ensure that the information being reported is accurate. You can do this by using a credit monitoring service.