A credit report is summary of debt and trade related information. It is compilation of reports about a business’s debt, bill payments, location, bank reports, foreclosure and repossession reports. It also includes information about repayments made by a business to earlier lenders.
There are agencies that maintain business credit reports of companies. The reports are maintained by credit bureaus and credit reporting agencies. Such bureaus also collect reports about a company from its partners and clients. It then makes or updates the company’s credit reports on a monthly basis. Such reports are reliable and a financer considers the credit report before making loans to a company.
A business owner also provides detailed information about the company’s history and plans to a credit reporting agency. This is done in his interest and only a good credit report shall pave the way for making extended credit available to the company from a financer. Business credit reports help to score a company and accordingly financers offer loans.
Credit report includes information about credit cards and loans. An organization’s payment history and credit limit are included in credit reports. It is also a list of public records like bankruptcy, repossessions, foreclosure, and tax liens. It is very important as many organizations check on credit reports to make decisions about a company. Banks also check on credit report before giving approval for credit cards and loans. So, a reliable agency should be approached for making credit reports.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org