Business Credit New York

Business Credit New York

Business Credit Reports

A business credit report is an official summary of a company’s financial status and credit health.  Like the business credit score, it is also provided by financial credit bureaus, namely Dun & Bradstreet, Experian, or one of the other credit rating organizations.A credit report will clearly show whether or not a business can honor its financial commitments.  It works in much the same way as a business credit score but contains more detail.  A favorable business credit report means that your company will qualify for higher loan limits.

Contained in your business credit report are your company’s financial profile, any judgments, bankruptcies, and collections made against your business, your company’s debt repayment history, and any recent credit inquiries that may have been made.Your company’s credit report will also show a credit score to indicate your business’s creditworthiness and the risk factor involved for future creditors.  Some credit providers also include a score that predicts your company’s future financial status.The most popular credit provider for credit reports is Dun & Bradstreet because they give the most informative and accurate predictive reports.Here is how to understand your business credit report.

THIS WILL INCLUDE YOUR

Most of these points are understandable, but you may wonder why the SIC and NAISC codes are included.  This is because there are different levels of credit risk for various industries, and The Highest-risk classifications include sales, money lending, eating establishments, and lending organizations.The following items to be displayed are usually your tradeline payment history and your commercial and financial history.  These will show a wealth of information, including your recent high credit line, maximum credit, whether monthly payments are current or behind, and how often you’ve missed or made payments more than 30 days late. 

This refers to vendor accounts, and your commercial financial history refers to your accounts with lenders and insurers.  It also shows the terms, the current and original balance, and missed or late payments.  Equipment hire, insurance, credit lines, and business loans will also be displayed here.Next, any legal information will be shown—judgments, accounts that have been handed over for collection, and tax issues or bankruptcies.  Legal filings are not conducive to lenders extending you credit.

As for your business credit score, each credit reporting agency will have its own credit scoring criteria and procedure.  Your business credit score can be affected by how much credit you have and the length of time you have had these accounts or loans. Any missed, or late payments will impact your score.  A good business credit report will clarify how much of a credit risk your company is and explain why it came up with that particular score.  It will also predict the future stability of your company based on the report.

It is essential to keep an eye on your business credit report to avoid being taken unawares by a bad credit score.  If you’re aiming to apply for a small business loan, having a bad credit score could increase your interest rate on the loan or even get your application rejected.

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Let Business Credit New York help you to get the best credit report you can get.  We will pave your way to success, every step of the way.