Can You Get a Credit Report for Your Business?
An excellent credit score can provide growth opportunities for your business when cash for expansion is in short supply. Knowing and monitoring your business's score requires receiving a business credit report. If you have a new business, it may not have enough credit history to merit a score yet, so you may have to rely on your personal credit score to receive credit offers. Established businesses with an Employer Identification Number will have a file with the credit bureaus that maintain business credit reports and should request a copy of their report before applying for a loan, according to the Small Business Administration.
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Why Get a Business Report
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Just like consumer credit reports, business credit reports provide information to potential lenders regarding your creditworthiness. If you have intentions of replacing or adding equipment, expanding your business facilities or improving your current facilities, lenders will use the history contained in the report as one method of determining whether to lend your business money. Vendors and suppliers may check your credit report if you ask for a commercial account.
What the Report Contains
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Business credit reports contain facts about your business such as what type of business it is and what services you perform. The report lists the corporate officers and provides their contact information, as well as the names of any of the company's key personnel. The credit bureau will predict your future payment behavior and show details of your payment history. Reports can also show your Uniform Commercial Code, any information from Standard & Poor's, bankruptcies and judgments and tax liens against your business. The report may track past inquires to inform future lenders how often someone requests your report.
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Obtaining a Report
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To obtain your business credit report, you must contact one of the credit bureaus such as Experian, Equifax, TransUnion or D&B. You will need your name, EIN number, business address and other information depending on the company where you are requesting the report. The bureaus offer a service that provides you with access to numerous reports per year to enable you to track changes to your score and identify instances of fraud.
Considerations
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New businessess can have a difficult time obtaining credit because lenders will rely on the owner's credit report to determine how much credit to extend and what interest rate the business will pay. If your personal credit score is low, you may not be able to borrow money for your business even if you have your business tax number because lenders will look at your personal report to make their determination. The Small Business Administration recommends that new businesses establish a credit history early and pay all of your bills on time to raise your score.
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