How to Check Your Customer’s Business Credit Report and Score
Did you know over 36% of businesses don’t run credit checks before signing contracts with new customers, leaving themselves open to financial risk? Additionally, 26% of businesses admitted that they don’t run credit checks on current customers either, missing out on a key metric for financial planning and ensuring long-term stability.
Understanding and regularly checking your company’s business credit score and report is essential for maintaining financial health, securing favorable financing terms, and building trust with stakeholders. A credit score is a numerical value that evaluates the financial health of a business and the likelihood of that company entering bankruptcy in the next 12 months. If you are not checking this, you are opening the door to potential problems later down the line.