Most people are aware of their personal credit score and its importance. If you own a small business, you might know that you have a business credit score, but you may not realize how vital it is to your financial situation. Because a business credit score is much more complex than a personal credit score, you need to know that it is more than simply checking a number. Here’s what you should know.
Your Business Credit Score Includes Information About Your Business
When checking your business credit report, you should make sure that the credit bureaus have correct information about your business, such as the number of employees, location and account information. Although this information may not affect your score too much, you do want to make sure that the bureaus have the right info.
Monitor Inquiries to Prevent Identity Theft
You should check who is checking your business credit score to see who is inquiring about your business. Although business identity theft doesn’t get as much publicity as personal identity theft, it can occur on a much larger scale. You want to make sure that a thief doesn’t get ahold of a business credit card in your name. Watch for new accounts that you aren’t aware of.
Business Judgments and Liens
Some of the business credit bureaus base your credit report on the likelihood of your business being in operation in the future. Non-financial information can be used to judge your business longevity, such as tax liens or judgments against your business. Your credit score could be affected by a vendor writing off an old account.
Your business credit score is more than a number. It’s a representation of your business. Check your score at least annually. Steadfast Funding Partners offers loans and financing to businesses of all sizes. Contact us today for more information.