Small and large companies are eligible for free business credit checks. These reports reveal how well a company handles its financial obligations to various partners. With this information, many businesses strengthen their credit. Since lenders base their decisions on data in these reports, stronger credit provides businesses better lines of credit, loans, and interest rates. As a small business financial professional, you can secure better financing, get fast funding for business and access capital needed to grow the company. In this post, we will discuss how to run small business credit checks for free.
Before beginning the small business credit checking process, you must understand the scoring scale for reports. While business credit scores are determined similarly to personal scores, the results expressed in reports are different. For example, two of the three reporting bureaus use a scale of 0-100 instead of 350-800. Additionally, the third bureau provides businesses three separate assessments, including a payment index, credit risk scores, and a business failure score. Consider these different scales when interpreting your results. This way, you highlight the data representing your business’s financial health. Surely, understanding the scoring process provides the deepest insights for your financial decision-making.
Compare Free Business Credit Report Services
Second, compare the various free services providing free business credit reports. While individuals can receive up to three free credit reports every year, business entities do not have the same eligibility. However, several online services offer simplistic business credit reports for free or as part of a free trial. For example, some online business credit platforms provide access to credit information from all three major bureaus, summaries of the more complex reports, and tools teaching how to build credit. Alternatively, other services provide a free trial including fifty domestic business credit checks. These checks include credit scores, card limits, payment information, and other core business data. Absolutely, you can determine the best business credit checking service for your needs by comparing them.
Register Your Business With A Provider
Third, register your business with the commercial credit check provider of your choosing. There are four major bureaus that offer business credit score ratings. To get access to your company’s information, you can register with as many bureaus as needed. Simply go to each bureaus website and create an account. Of course, double check that the provider has free credit reporting options. When selecting the level of service, make sure to choose the account type with free options. The package may restrict the number of reports for a free account. With an account registered and confirmed, you can start requesting your small business credit checks. Certainly, register your business with a provider to receive free business credit checks.
Once the account is setup, you need to provide identifying information to your chosen business credit check service. Most services require basic information such as your company name, ZIP code, and email address. Additionally, confirm your identity with your home address, date of birth, phone number, and Social Security number. Depending on the business credit bureau, you may be required to answer additional questions for security. Typically, security questions regard your loan history, work history, or previous addresses. If applicable, you can secure some of the best SBA loans for veterans, as well. Definitely, secure your small business credit reports by providing various personal information.
Pull Reports & Monitor Continuously
Lastly, pull your small business credit reports and continue monitoring your credit. The information in your reports varies greatly between credit reporting agencies. For example, some credit check companies include full reports in their free trials and service options, while others only provide summaries. Contact the bureau and request a report on your business. Depending on the service, you may be able to acquire additional reports for free. This way, you can check the financials of competitors, prospective business partners, or companies you already work with. Leverage the insights from your business’s report to make more effective and efficient financial decisions. Of course, to maintain these advantages, you must pull reports regularly for continuous credit monitoring.
Small businesses use several methods to run their credit checks for free. For example, understanding the scoring process provides the deepest insights for your financial decision-making. Second, determine the best business credit checking service for your needs by comparing them. Third, register your business with a provider to request free business credit checks. Next, secure your small business credit reports by providing various personal information. Finally, to maintain financial advantages, you must pull reports regularly for continuous credit monitoring. With stronger credit, you can secure commercial lenders financing funds and projects. When looking to run small business credit checks for free, consider the steps described above.