At CheckMyClient, the vast majority of credit ratings we provide are for businesses working with new clients. In other words, those credit scores will be used limit risk. Business credit ratings offer a good indication of the financial health of a particular company, and that helps entrepreneurs make informed decisions about their own cash flow and finances.
Also, a great deal of our customers want to know their own business credit rating. Here are a few reasons you should too.
1. Improve Your Chances of Getting Credit
The business credit rating, and the report that goes with it, is the primary tool lenders use in order to give you a bank account or business loan. It therefore makes sense to check your company’s credit rating prior to an application to ensure you have the best possible chance of acceptance.
In the current economic climate, credit is extremely difficult to obtain; everything you can do to better your chances is worth the investment. Knowing your own business’ rating is the first step to applying for suitable products.
2. Improve Relationships With Suppliers
Using CheckMyClient, you can request your clients’ business credit rating at any time. How do you know that your suppliers aren’t doing the same thing?
By ordering a copy of your own credit report, you can see exactly what your suppliers see when they credit check you. That puts you in a better position for negotiation, since you have a better idea of the kind of credit limit they can offer you. If there are any blips on the report, you can take steps to improve your business credit rating before your suppliers start to tighten their terms.
3. Correct Mistakes
All CheckMyClient data is based on impeccable resources, such as data we receive directly from Companies House. However, it would be foolish of us to claim that nobody involved in financial services makes mistakes. Just as it’s wise to review your personal credit score from time to time, it’s also vital to check your business credit score and highlight any glaring errors.
Thankfully, inaccurate data is incredibly rare, but forewarned is forearmed. If your accountant has miss a zero off your profit figure, it’s better to know about it before it limits your creditworthiness. And if you forgot to remove your old Company Secretary from your records, it’s better to know about it now. We recommend you check your report every six months so that you’re always confident of its accuracy.
Your business credit rating isn’t the only factor people use when giving your business credit, but it certainly makes a difference. Once you can see what your suppliers and your banks can see, you can approach new relationships with confidence, and you can apply for financial products that will help you grow your company.