Credit and Finance, Hints and tips
Who is checking up on you – and what will they see?
Posted on by Katie Hook
Estimated read time: 4 mins
You probably already know that you have a business credit report – but do you know what information it includes? The fact is, your business report is a valuable resource to your suppliers and lenders alike and the information within it allows them to make informed decisions about their business and financial relationship with you.
If you’ve never considered the details in your business report and the purpose they have, then you might find this post rather interesting…
What’s in a Business Credit Report?
Your Business Credit Report can contain a wealth of information. Let’s take a look at some of the key ones:
Your existing business credit, such as current accounts, loans and credit card information is included on your Business Credit Report, along with balances and amounts outstanding.
Payment performance can offer real insight into a business’ financial standing – and any potential problems they might be experiencing.
County Court Judgments (CCJs) and bankruptcies
This type of information is particularly significant to potential (or existing) suppliers and lenders. They indicate severe financial difficulties and may well act as a red flag to those considering working with you.
Companies House records
These might include details on the business directors, previous company names and annual returns.
As you can see, your Business Credit Report is full of relevant information that will help your suppliers and lenders to decide whether to work with you – and what rates to offer you.
The good news is, you have access to the SAME information about your prospects and clients, so you can benefit from all the same insights too.
Of course, checking potential clients for their ability to pay you isn’t the only advantage of credit checking. Here are just a few others:
Monitoring existing clients
Business performance can change and so can a business’ financial situation. It’s good practice to regularly check your existing clients too, so that you can spot any early warning signs that they may be starting to struggle with their payments.
Credit checking also allows you to confirm that people are who they say they are – and that their business is performing the way they say it is. This kind of due diligence can save a lot of hassle and lost revenue down the line.
Determine payment rates
If you have an understanding of a prospect’s previous payment behavior and their credit history, you will be able to adjust your rates accordingly so that those who are lower risk get more favorable terms. In doing so, you are reducing your own financial risk, should your client default on a payment.
You can be sure that your suppliers and lenders are checking your Business Credit Report, make sure you’re also taking full advantage of the same insights by credit checking your clients too.
Services from Experian Business Assist allow you to qualify your customers, suppliers or contractors with Experian UK Business Credit Reports, as well as keeping an eye on your own Experian Business Credit Report. Take a look today to find out more.