Since business credit is highly unregulated most companies and business owners are unaware of how important it is.
Personal credit reports and scores are a hot topic these days and there is a wealth of information available online to help educate consumers on how they work, their significance, and regulations pertaining to them. When a bank rejects a consumer for a mortgage the law requires the bank give an explanation for the rejection and the credit score used in the decision making is supplied to the consumer.
On the other hand, opposite rules apply for business lending and business credit information. When applying for a business loan a bank doesn’t need to divulge if it used a copy of your business credit reports, scores, and indexes to make a decision. If businesses actually knew how easily accessible a copy of their business credit was and how limited and poorly the scores might reflect on them, they would be running to get a copy of their Dun & Bradstreet or Experian business credit profile. Equifax is also a business credit bureau but is rarely used. #NorthShoreAdvisory #BusinessCredit #D