Commercial Credit Reports and Your Business Growth

Commercial credit reports are something that every business owner should look at from time to time. If you want your business to grow, you are going to have to be aware of what your commercial credit report is and how you can improve it. Here are the basics of commercial credit reports and how they relate to your business growth.

Commercial Credit Report

A commercial credit report is a report that is generated by a commercial credit bureau. It is very similar to a personal credit report. The credit report is going to have information about your business dealings and how you handle your business credit. The credit bureaus keep track of how you make your payments, what types of credit lines you have and whether you have been a good borrower. The credit report will also have a credit score. The credit score is a numerical representation of the quality of your business's credit. If your business has done well, your credit score will be high. With businesses, the credit score is on a scale of 1 to 100, with 100 being the best possible score. 

Business Growth

If you want your business to be able to grow quickly, you need to develop a good credit report. Your credit report says a lot about the quality of your business, and it is going to impact the level of growth that is possible for you. In order to grow, you are going to have to obtain financing in most cases. When you need financing, lenders are going to want to look at your business's credit report. They are going to look at your credit score and determine if you are a good credit risk. 

Once a lender looks at your credit report, they are also going to determine what interest rate you can receive. If you have a good credit score, your business is going to be able to get a very reasonable interest rate. If your credit score is poor, you will have to pay more money for your loan in the form of higher interest rates.

If you plan on issuing corporate bonds, your credit report is going to play a role in those as well. Bond investors are going to want to invest in companies that have good credit scores. If your credit score is good, you are going to be able to attract investors with low interest rates on your bonds. If your credit is poor, investors are going to require a higher interest rate before they will purchase bonds.

How to Obtain One

You need to check your commercial credit report regularly. In order to do this, you can buy a copy of it directly from the credit bureaus. Dun & Bradstreet is the most influential commercial credit bureau in the market. You can visit their website and put in an order for a copy of your commercial credit report.