It is a business report card where all your company’s financial information and payment history, whether good or bad, are studiously recorded. Inside your business credit file is a collection of scores and ratings, as well as, financial stress indicators that suppliers, lenders, and potential partners use to decide if they want to do business with you.
Early payment history is marked like an A+ in business credit files, while late payments and those in default will show a failing grade. Business liens, legal judgments, and other financial woes will further be recorded in your business profile and available for all to see. If you have an incomplete credit file, a poorly graded or mostly empty file, it will also impact your company’s credibility. Vendors who offer net 30 accounts would be unlikely to approve your credit application while obtaining business loans would be incredibly difficult.