If you're like many small business owners, you probably don't know your business credit score. Intuitively, you know your business score matters, but you probably don't know how much it does.
For example, on May 24th the Small Business Administration (SBA) published an article on its blog '5 Major Reasons to Monitor Your Business Credit Reports by Marco Carbajo.
To summarize, your business credit score impacts:
These are some pretty important things to highlight because they can negatively or positively impact your business.
There are a couple of business credit agencies. For instance, the most popular is Dun and Bradstreet (D&B). If you use D&B, they will allow you to view your business credit report and update it on-line via iUpdate.
When you go to these sites, you may find that you don't have a file. For all reasons stated above, you probably want one. Therefore, you can start establishing your business credit score.
It's relatively easy to sign up. But, it can take time. For example, if you use D&B, you will need to register for a DUNS number. This can take up to 30 days. Once you have that number, you can manually update your data.
Mr. Carbajo shares his five key reasons for monitoring your business credit report. Certainly, all are important:
First, ensure your company's business credit report is complete and accurate. Second, stay notified on any changes to your report that could impact your business. Third, identity any issues or areas in your business credit report that can be improved upon. Next, be aware of who is inquiring about your business (inquiries). Finally, prevent identity theft by monitoring inquiries into your report
As with your personal credit, it is important to dispute any inaccurate information. For instance, some agencies have alerts you can sign-up for that will send you notifications of any score changes. Thus, it makes monitoring your report much easier. Since the work is on you, the set-up is a bit of a pain. But, it's worth it. Because once it's done, monitoring your business credit score is not as burdensome as you may think.
In other words, you spend a lot of time and effort in managing your business' reputation. Your credit score is a manifestation of that reputation to creditors. We spend of lot of time and energy managing our reputation to other audiences. So, why wouldn't we apply that same rigor with our creditors?
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkedIn profile