Why not use my personal credit?

It’s true that many business owners choose to tie their company expenses to their personal credit. However, this is an increasingly risky proposition. The main reason being that if the business is at risk, so is your personal credit score.

In addition to this, many lenders and creditors view personal credit as less-than-idea. Establishing business credit also aids in protecting the business owner from fraud and legal action should legal action be taken against your company.

How can corporate credit help me build business capital?

There are many ways in which properly maintained business credit can help a company grow and expand. No only can your corporate credit help your business qualify for loans and lines of credit which it otherwise might not, it can also help to establish positive relationships with vendors and suppliers.

There are also tax benefits that a company can take advantage of with well maintained business credit.

Can I deduct the cost of Building Corporate Credit from my taxes?

Absolutely! The costs of monitoring and building your business credit can be deducted from your taxes as a company expense.

What is a corporate credit report?

Essentially, a company credit report presents an objective and reliable view of a company’s financial health. The aim of a corporate credit report is to present an unbiased look at how a company handles its financial dealings and obligations. The information contained in a company credit report all comes directly from third party source, or else is verified through a third party. This helps to ensure the report is accurate.

What information is contained within a corporate credit report?

A corporate credit report contains information that helps to present an accurate image of a company’s management of financial responsibilities and obligations. This can include data showcasing a company’s financial performance compared to industry competitors, business information from public records, background information on the business, and information on specific trade and payment transactions.

How can I maintain my corporate credit?

At its root, business credit is built in similar ways to personal credit. Financial information is provided to business credit bureaus by suppliers and creditors.

This means that the best way to maintain your business credit is by staying current on payments and ensuring that creditors and suppliers are reporting to business credit bureaus.

How do I get a corporate credit report and score?

We provide our clients with the most reliable sources for their business credit report data. Please contact one of our consultants for more information.

Can a corporate credit report save my business money?

By reviewing public records and other information contained within a corporate credit report, a company can continuously manage liability issues and protect itself from fraud. In addition to this, monitoring business credit can often help a company to establish better practices and business relationships. These are only a few ways in which maintaining solid business credit can help a company’s bottom line.

Why should I monitor my corporate credit consistently?

Monitoring your company’s credit can protect your from reporting errors and fraud. Keep in mind that creditors and vendors take a company’s credit report into account when judging financial health.

For that reason and others it is vital to understand what is listed on your credit report.

How is my corporate credit evaluated?

When lenders and creditors view your corporate credit report, they are looking for a pattern of company practice and payment performance which create an image of overall financial health. Payment history, public records, and industry comparison are all utilized to this end.

Naturally, a company a consistently positive payment history is viewed as financially healthy and therefore qualifies for loans, lines of credit, etc. As you can see, business credit and personal credit are evaluated in similar ways. This is why it is extremely important to monitor and maintain your business credit if you hope to grow your company financially.