Business Credit Monitoring

by Gerri Detweiler

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You are likely well aware how important it is to track your personal credit, but the same goes for your business. If you own a business, you need a good credit standing for both your personal and business to access capital. Therefore, the only true way to have all your bases covered is with business credit monitoring.

Business credit can make or break a small business. It can mean the difference between being able to getting funding to grow and manage cash flow, or not having funds to survive through lean times. And when it comes to credit, the work never stops. It’s a fluid thing and can change rapidly.

What’s the Big Deal with Business Credit?

There are a number of things your business credit will influence. From day-to-day operations to meeting long-term goals, you will need to know your credit standing to adequately make decisions pertaining to your business. To do so, you should regularly check your business credit report. Your report will impact:

  • Any loans or business credit cards you have and what interest rate you are paying
  • Insurance premiums for your business
  • The price of your business supplies

Business Credit Monitoring Makes Sense

Monitoring your credit report is the only way to achieve peace of mind when it comes to finances. It will alert you to any malicious activity that could lower your score and negatively impact your business. Whether it’s noticing a questionable item or stopping someone from stealing your identity, the implications to watching your credit are far reaching.

Learn More about the Experian business credit report

Creditors will also be looking at this report, and as a result, can terminate financing if your credit score falls to low. Monitoring keeps you in the know about your business’ financial state, and can be the first step in not only avoiding disaster, but also raising your credit score.

This article was originally written on September 28, 2015 and updated on January 29, 2020.

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Credit expert Gerri Detweiler is education director for Nav. She has more than three decades of experience in consumer credit education, has been interviewed in more than 3500 news stories, and answered over 10,000 credit questions online. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. She has testified before Congress on consumer credit legislation.