Company Reports: Time To Get Rid Of Errors

Do you know what's in your company credit report? If you've ever borrowed a loan from a bank or partner or had any court judgment against your business, a credit file on your company might exist, even if you've never seen it. Just like personal credit reports used to evaluate consumer borrowers, company reports help gather financial information and payment records to let banks and vendors decide whether a company is likely to go bankrupt. Errors in your credit file may undermine your reputation as a reliable solvent business and prevent you from borrowing money you need, so getting rid of them on time should become your top priority.

How not to earn a reputation as an insolvent company

An inaccurate credit report can make your company appear riskier than it actually is. According to experts, company reports can be at times incomplete. Financial, statutory and directory data on businesses are collected by reputable bureaus. The credit reporting industry has vast reach and power by gathering and selling information used to determine your eligibility for taking out a loan. These companies collect data on private firms from trade partners, creditors and public records, such as incorporation documents, liens, bankruptcy filings and court judgments. You can order a credit report from one of the agencies or sign in for a subscription service that will send you a monthly credit score report. This way you will be informed about any inaccuracies in your company reports and able to take measures to have them corrected on time.

How can errors affect your business?

The error rate is estimated to vary from 3 to 25 per cent; this means that millions of people may have inaccuracies in their credit reports. But even 1 per cent would mean that two million companies could have erroneous credit histories. Your accounts could be wrongly listed as delinquent or debts you’ve paid back may still be on the debt list. Whereas damage seems negligible at first glance, a minor error may cause you to pay sizeable interest rates or to be denied a loan altogether. If there are errors or inaccuracies in your company reports, you should contact the bureaus; otherwise you’ll find yourself in a trap trying to prove you’ve paid back all your debts. It may not be the bureau's fault, as it reports what has been reported to it but rather a mistake from a third party providing it with data. Creditors are sometimes less concerned about accuracy than they should be.

Some moneylenders make credit decisions considering your financial statements and trade references only; for others, company reports are the first thing they look at. Accurate updated information can help your creditors make a favourable credit decision and grant you a loan with a lower interest rate. Before searching for creditors, remember to ensure that credit report errors won’t keep you from getting a loan or trade credit; otherwise you’ll lose a good deal of time having inaccuracies corrected and looking for new lenders. Time matters when money is at stake.