Running a business is tough, especially when there is an air of uncertainty in the economy. Over the past year, we’ve seen dramatic upheaval in consumer demand, supply changes, and buying habits for both B2C and B2B businesses.

In this economic environment, you must keep a close watch on your customers, especially when it comes to extending Credit. When you buy a Business Credit Report, your small investment can go a long way towards protecting your business from customer defaults.

How Customers Are Handling Credit Has Changed

The way business customers are handling credit has changed as well. The majority of small businesses say they have experienced late payments well past the due date in the past year. A study of accounting data revealed that 57% of payments in 2020 were collected late.

For businesses of any size, late payments can cause all sorts of cash flow problems.

Although commercial bankruptcies are slowing from last year’s frantic pace, other economic indicators forecast more delinquencies and bankruptcies in the future. The Trepp commercial mortgage delinquency rate, for example, stood at a high of 6.15% for June 2021. (The all-time high on this basis was 10.34% registered in July 2012.)

Why Buy Business Credit Report to Check on New and Existing Customers

When you are doing business with a new customer, you have no idea of their financial situation. Many companies ask new customers to fill out credit applications and list references. Even if you call their references to check, you are getting an incomplete picture of their credit history. The customer applying for credit is going to want to make the best impression, so they are only going to list references where they have a good credit history.

A Business Credit report shows you the entire credit history both the good and the bad. This gives you a complete picture to help you make better credit decisions.

Even long-term customers that have a spotless record of paying their bills on time may be facing financial stress differently than in the past. A business credit report helps you uncover when a customer has a deteriorating financial position. This allows you to make smarter decisions about extending or renewing credit and what terms you should offer.

How to Use a Self-Serve Business Credit Report

There are several ways to use a self-serve business credit report.

For Customers

If you have extended credit to customers and they default on their bills, it has a ripple effect. First, you do not receive the payment you are entitled to. If you already paid for goods or supplies to fulfill the customer’s order, that money is lost as well. The impact on your cash flow may also cause you to have to borrow money or pay interest on your credit balances.

For customers, you can examine their overall financial strength and history of credit handling to help protect your cash flow.

For Suppliers

If you do not have products or goods on the shelf to sell, or the materials you need to provide the services you offer, your business suffers. You need to protect your supply chain.

If the suppliers you use are struggling financially, they may not be able to deliver the goods or services you need to take care of your customers. A self-serve business credit report is a smart way to make sure your suppliers are financially healthy before you commit to a purchase order.

For Your Business

It is also wise to check the credit report for your business routinely. A business credit report lets you see how others see your creditworthiness. It can help if you need credit from another business or supplier or you are applying for a business loan.

Pulling a business credit report also helps you identify and fix any errors or incorrect information before it causes you trouble.

Why Buy a Self-Serve Business Credit Report?

With a self-serve credit report, you can instantly access the credit history of any business customer. You do not need the customer’s permission and you can pull a credit report quickly and easily.

Command Credit lets you check credit scores, tradeline, credit usage, and get recommendations for credit limits and alerts when a customer’s financial situation changes. You can sign up for a subscription plan or you can choose to use the self-serve portal to pull business credit reports individually anytime you want.

You can buy a business credit report from any of the three major business credit reporting bureaus:

• Equifax
• Experian
• Dun and Bradstreet

You can choose from different types of business credit reports that provide information, such as:

• Overall credit score
• Risk of repayment
• Business viability assessment
• Financial stability risk
• Credit limit recommendations
• Any outstanding debt beyond term
• Derogatory legal filings, such s liens, bankruptcies, or judgments
• UCC filings
• Tradeline balances
• Tradeline details
• Payment trending for company and sector

With a self-serve business credit report, you can have the information you need to make decisions about extending credit within a few minutes.

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