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Business Credit

What Is Business Credit and How Can It Impact Growth?

A company’s business credit is its perceived ability to make good on financial obligations according to the terms of its contracts. This is often expressed as a collection of scores and ratings found in a business’s credit file, which is part of a company’s Live Business Identity in the Dun & Bradstreet Data Cloud. A strong business credit file can help put your potential customers, lenders, and suppliers at ease, while poor scores and ratings may impact your ability to win contracts, result in higher interest rates on loans, and otherwise limit growth.
Basics of Business CreditHere’s why it’s important to keep information in your business credit profile up to date and accurate.
Business Credit Scores and RatingsLearn about specific business credit scores and ratings and what you can do to help positively impact them.
Business Funding & Lending InformationWhether you’re applying for a loan or requesting trade credit, business credit scores and ratings have a part to play.

Judging a Company’s Credibility

There are two aspects to business credit: building your own and checking the credibility of other companies. Building a strong business credit file can help demonstrate your company’s financial responsibility and determination to fulfill the terms of your contracts. Such reassurances can be important when conducting business with a company that has never worked with you before or with an existing partner where the relationship is relatively new).

Buying and reviewing another company’s business credit file can help flag potential problems and mitigate risk. The information in the report can highlight that company’s past transaction and fulfillment history and indicate if your potential partner is likely to deliver or pay its creditors on time. In addition, a business credit report can help predict the likelihood that a business will cease operations in the foreseeable future.

Whether you’re a customer or vendor, business credit is important for starting and sustaining profitable relationships.

How Business Credit Affects Contracting

Many companies will perform a background check on your business before signing on the dotted line, so managing your Dun & Bradstreet business credit profile can be especially important if you’re competing for contracts. Your business credit report is a powerful ally in helping you frame your business as successful and trustworthy. Also, your business credit scores and ratings may influence what you pay for required insurance and how favorable the terms and conditions of contracts are for your company. Such concerns are especially relevant for manufacturers, construction companies, and suppliers.

Who Can See My Business Credit Report?

Anyone can purchase your company’s business credit report, including your competitors. That’s one of the reasons it’s so important for businesses to take the time to build and monitor their business credit files. The first step in becoming proactive about business credit is to get a Dun & Bradstreet D-U-N-S® Number, a numerical code that helps Dun & Bradstreet collect and organize information about your company. Not knowing your company’s business credit scores and ratings can mean that you’ll be in the dark about what potential and current partners may see when they look at your report.

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