Why is it Important to Monitor Business Credit?
Monitoring your business’ credit score is an important part of doing business. Even small business owners need to pay trade accounts on time and establish a creditworthy reputation. Although business credit scores are different than personal ones, they are important to monitor, especially if you own a mid to large-sized company. There are several factors that you should consider when monitoring your business’ credit score. The following information will help you monitor your business credit score.
Experian Business Credit Advantage helps small businesses improve their credit score
A business’ credit score can help determine whether or not a company is likely to become insolvent in the next year. Third parties look at these scores to determine whether or not a company is a credit risk and may need to improve their score. A business’ score can affect the interest rate and terms of a loan or credit line. Experian’s business credit reports are divided into three categories: financial stability risk, payment history, and company background. Businesses that have a score higher than seventy-two have a lower likelihood of filing for bankruptcy in the next year.
The Experian Business Credit Advantage plan costs $189 per year. With this plan, small businesses can view their credit report and score at any time. In contrast, a $10 Biz verify report does not include business credit information. Businesses that need a credit report may want to purchase the more extensive Experian Business Value Report for $99. The Biz verify report is also worth less than two hundred dollars. Experian Business Credit Advantage will provide your business with an accurate credit report and score, and it will help you understand what lenders look for when considering your business loan application.
Credit Suite helps small businesses improve their credit score
Credit Suite helps small businesses build their credit. It offers two pricing options: a one-time payment of $2,997 or seven monthly payments of $597. The service assesses your credit needs and determines the most effective approach for building your business’s credit score. You are then guided through the funding process. You may have to pay up front, but the cost is worth the value of this service.
With Credit Suite, small businesses can access their credit scores and business credit reports from all three credit bureaus. They also offer white label products for resellers. While the service has several features, many users have reported that the customer service is responsive and caring. Despite this flaw, the company quickly rectified any problem and provided a refund. Overall, Credit Suite is a valuable service for small businesses and has helped countless businesses improve their credit score.
Equifax’s payment index
If you are looking for a business credit monitoring service, you should check out the payment index score offered by Equifax. The payment index score is based on three different aspects. These include your payment history (on-time payments and late payments) and public information about your business. The score will give you a numerical rating between one and 100, depending on how much debt you owe and when you’re late making payments.
Another benefit to Equifax’s payment index is that it aggregates the payment information of participating lenders in the Small Business Financial Exchange. The payment data from these lenders includes public record information, such as liens and judgments, as well as bankruptcies and Uniform Commercial Code filings. If you don’t want to pay your creditors on time every month, you can sign up for a free Equifax business credit monitoring service.
Dun & Bradstreet PAYDEX
If you own a business, you may be wondering if you should use a PAYDEX score to check your credit. In order to get a PAYDEX score, you must have at least 4 trade references. Dun & Bradstreet does not look at your personal financial history, but rather the payment history of your vendors. If you do not have at least four trade references, you should consider getting them.
The PAYDEX score that you receive from Dun & Bradstreet is based on your payment history and may indicate if your business is in trouble. A low PAYDEX score indicates a business is less likely to default on debt. A high score means a business has a high credit risk, while a low one means a low risk. You must also provide verified financial data when applying for a D-U-N-S number. Be sure to include as many financial statements as possible and include the number of employees.