What You Need To Know About Company Credit Reports

If you’re running a business in the financial sector that offers credit to customers and relies on repayments to stay afloat, you’ll need a way to make sure that your clients are creditworthy. Even if you generally only provide credit to businesses that have been established for a long time, you can’t simply assume they’ll be able to continually meet payments.

Luckily, it’s easy to access reliable reports on a company’s credit status. Just like individuals, companies are assigned a credit rating that’s designed to let others know how creditworthy they are, and those reports will prove to be an invaluable tool in helping you retain your profits and guarantee the future success of your business.

What are Credit Reports?

Company credit reports contain invaluable information that will help you determine whether or not you can offer credit to a company. They provide a broad overview of a company’s creditworthiness by assigning them a score between one and 100, but they also dig much deeper so that you can gauge how trustworthy a company is in areas such as whether they always meet payments on time, or whether they’ve every defaulted on payments in the past.

You can place your full trust in the information provided in reports because the data used to create them is gathered from third-party sources, and that ensures they are accurate as well as unbiased. Needless to say, a company itself is unlikely to provide you with the information you need to decide whether they’re trustworthy, and that’s what makes third-party reports so crucial.

What Information can be Found in a Credit Report?

As aforementioned, company credit reports contain a lot of information that’s presented in a way that makes it easy to analyse. Some of the main points of interest you’ll find in a report include:

  • Credit – In terms a company’s credit history, you’ll be given information concerned with its total number of previous trade experiences, balances outstanding, and all-important payment habits which will help you determine how likely the company is to make timely repayments.
  • Public records – You’ll also be able to find information about a company that is in the public domain. For example, previous bankruptcies will give you an insight into how successful the company in question is.
  • Demographics – In addition, a credit report will provide you with information about the size of the business, where it operates from and the number of years on file.

How do I Access Company Credit Reports?

Many different companies can provide you with detailed and accurate credit reports for a very reasonable fee. Just make sure you choose a company that offers a quick turnaround, detailed analyses, a quick sign-up process, and, obviously, a good price.

Credit reports are there to protect you from offering finance to companies that will be unable to meet payments. If you want to ensure the future success of your business, accessing company credits reports is of the utmost importance.