Tillful.com Reveals Monitoring Your Business Credit Score

Your business credit score is one of your company’s most important assets. Like any other asset, it is important to safeguard and manage it. The accuracy of the data being presented about your business will influence how other entities view your business. This means that every business needs to monitor their credit score regularly.

Your company’s credit score does not remain stagnant. Payment activity, outstanding balances, and other financial transactions alter your company’s credit score as they happen. This means your credit profile continues changing based on the nature of these transactions. Monitoring your credit report allows you to ensure that the data about your business is accurate and up to date.
As a business, there are five key reasons to monitor your credit score.

Credit Score Management

A good credit score can mean access to better lending rates, increased investor confidence, and a host of other benefits for your business. Monitoring your business credit report allows you to understand the factors that impact your credit score.

Your credit score is driven by various factors. The more you monitor it, the easier it is to identify and manage those factors. This will enable you to build your credit score until your credit profile is healthy.

Understand Your Position

Having a thorough understanding of your financial position helps you make better business decisions. If your credit score is not good enough for your business to access affordable lending then you can pursue other avenues of funding. You need to be aware of your credit profile to make such informed choices.

Suppliers, lenders, and other entities all make decisions about your company based on your business credit score. Understanding what this score tells them gives you an accurate indication of what to expect. When you know where your business stands then you are less likely to face unpleasant surprises.

Ensure Accuracy

Your credit score is used as a measure of your business’ financial health. Therefore, making sure that it portrays an accurate picture of your business is crucial. Just like a personal credit score, your business credit score is not stagnant. Your day-to-day business transactions, payment activity, loans, and other financial statements all impact your credit score.

Monitoring your business credit report enables you to ensure that it is up-to-date and accurate. This helps avoid costly mistakes and inaccuracies that could impact your business.

Credit Inquiries

Any time a credit check is run on your business, the inquiry is added to your business credit report. This allows you to get information on who is inquiring about your business and the information they have accessed about your business.

Protect Your Business

Fraud, identity theft, and other risks to your business can be monitored using your credit report. Suspicious activities on your business account, such as fraudulent payments, can easily be caught when you monitor your credit reports. This will help protect your business and keep your business credit score in good standing.

Conclusion

Your business credit profile is part of your business identity. It is the base line of how other people make decisions about your company. Staying informed by monitoring your credit score helps to manage the financial health of your business.
For more information, visit: http://www.tillful.com/business-finance/