Thanks to several years’ worth of ads from various reporting and credit counseling agencies, we’re all well aware of the need to monitor our personal credit reports. Are you keeping as close an eye on your shop’s credit report?
In a recent article for Bplans’ Up and Running Blog, Michael Lockwood explained why it’s essential that you do.
“Much like a personal credit report, unless it is managed, the business credit report is often inaccurate, incomplete, and presents your company in a poorer light than it should,” he wrote. “If you want to maximize your chances of getting your business approved for a business loan or equipment lease, ensure that your business credit report is accurate and complete, and do it very early in the process.”
Lockwood offered these eight tips for cleaning up your business credit report.
- Make sure the business credit report accurately shows the business name, and any trade styles (DBAs).
- Verify the physical business address, and include your website address.
- Look at the payments score in detail. Is it accurate? Does it accurately show payment promptness? If not, you can challenge an entry that shows the payment was paid later than it actually was, but you’ll have to be able to prove it.
- Is ownership of the business accurately explained, and does the report properly show the business entity type (partnership, LLC, corporation), and time in business?
- The business credit report allows you to add the name of the officers of the company, the title and business function, and some work experience.
- It also provides for entry of the history of the company and any recent company events, such as a move to a new location, a change in ownership, etc.
- You can decide whether to add financial information about the company, but remember that you will be making sometimes sensitive information available to everyone if you do so.
- The business credit report will show liens, lawsuits, and loans. Make sure this information is accurate.
To read the complete Up and Running Blog article, click here.