What is a Small Business Financial Credit Report?

Whenever you apply for any type of small business credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with Trans Union, Experian, or Equifax. These credit bureaus collect and maintain information on the vast majority of Americans, but they are not affiliated with the government in any way. The credit bureaus are for-profit corporations that sell your personal information for money.

The credit bureaus receive your personal information through the same lenders who grant you credit. They have agreements with each of these credit grantors that require the credit grantor to inform the credit bureaus of everything that occurs in your relationship with the credit grantor. If you make a payment late, the negative credit listing is quickly reported to at least one of the three major credit bureaus and is added to your small business credit history.

Small businesss credit reports are not just a record of how you are currently managing your business credit accounts. Credit reports are histories of everything you are doing with your business credit now, and everything you have done in the past. The credit bureaus collect this information, list it on your credit report, and then sell it to credit grantors who wish to see your credit history before they decide to lend you money. The credit grantors who review your credit are especially interested in any negative credit. If you have shown any tendency to pay late, or to disregard your financial small business commitments in the past, then the creditors' computers will immediately reject your application. Just like when you were in grade school, your credit report is your financial small business report card to the world. TrueCredit 3-Bureau Credit Monitoring

What Kind of Financials Appears on your Small Business Credit Report?
Small Business Merchant Trade Financial ~ These include your small business credit lines such as department store cards, auto loans, mortgages, and credit cards. If there is any history of late payment, or if your credit business line was included in bankruptcy, charged off, or put into repossession, the listing will be considered negative by all credit grantors.
Business Financials Collection Accounts ~ When a business account is referred to collections because of delinquency or because of a bad check, this appears on the small business credit report as a collection account. Collection accounts can appear as paid or unpaid accounts. Any type of collection account, whether paid or not, is considered very negative by all credit grantors.
Public Records Public records include bankruptcies, judgments, liens, satisfied judgments, and satisfied liens. All court records, including satisfactions, are considered negative by all credit grantors.
Small Business Inquiries Every time a potential vendor credit grantor looks at your credit file, a credit inquiry appears on at least one of your credit bureau reports. If the number of inquiries is very few over the last two years, then there may be no negative effect on your credit worthiness. However, if there are many recent inquiries showing on your small business credit report, credit grantors may become nervous and deny you credit.
How Long Will Negative Information Stay on My Small Business Credit Report?
The Fair Credit Reporting Act (FCRA) requires that most negative credit items be deleted from your credit bureau file in no more than seven years, except for a Chapter 7 bankruptcy which can be reported for up to ten years. These are the time limits for reporting negative credit. The creditor or the credit bureau can choose to have the negative credit information deleted whenever they please. Inquiries may remain on the credit report for up to two years.
Can I See My Small Business Credit Report?
Most credit grantors are not allowed by the credit bureaus to show you your own credit report. But you can obtain your credit report from the credit bureau Free. It takes literally minutes to enter a few pieces of information and within seconds can be obtained and printed out! Your small business credit report is relatively easy for you to read. Your best bet would be to order a 3-in-1 combined bureau report since they are the easiest to read.
How Much Bad Credit Does it Take for Me to be Denied Credit for my Small Business?
As you may have already experienced, even one small late pay listing may result in credit denials. It is a myth that a large amount of positive credit can outweigh some negative credit. Any negative credit whatsoever can become a substantial credit obstacle.
Who Looks at My Small Business Credit Report?
Exactly why you should monitor your small business credit! I can't stress it enough! Lets face it, with the passing of each year, your business credit report is used more and more often as a yardstick to measure your business ethics. Prospective vendors and creditors will always review at least one of your credit reports before granting you additional credit to help your business grow. Today it is increasingly common for insurance companies to review your credit before extending auto or health insurance. As an employer, you should now check credit before considering hiring additional employees for a position. I can guarantee that if you rented space for your small business, you have already been through a credit check to determine your worthiness as a renter. So what are you waiting for? FREE Credit Score? Click to Find Out More!