How Small Business Credit Reports Impact Your Company's Fundability

Small business credit reports provide information related to a company's credit history. This information is used by lenders to determine your creditworthiness.

Report Details

Credit reports contain important details related to a small business's financial background. This can include active loans and amounts due, payment histories, recent loan applications, credit report inquiries, credit scores, liens, judgments and bankruptcies. This information is collected and furnished by credit reporting agencies like Dun & Bradstreet, Experian, Equifax, and TransUnion.

Importance of Credit Reports

Credit reports are important to a small business because they can determine whether it qualifies for a loan or credit extension. Banks and creditors use credit reports to determine lending risks. A small business with a poor credit report is considered a high lending risk, whereas one with a good credit report is a low risk. A credit report can influence not only whether you are approved for a loan but also the interest rate you will pay. Creditors are likely to extend higher lines of credit to a business with a positive credit report. Company insurance premiums can also be affected by your credit report. Investors may not want to put their money into a company with a poor credit report.