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What is a business credit report, and why would you need it?

What is a business credit report?

A business credit report provides specific information about a company's ownership, such as financial position, risk scores, subsidiaries, tax identification number, and other details.

These reports are used to determine a company's creditworthiness and whether it is eligible for a loan or credit parts to invest in a company's expansion, operations, and other needs.

In addition, these reports include a history of delinquent accounts, bankruptcies, liens, and closed accounts. Companies, like individuals, strive to keep their business credit reports in good standing in order to increase their chances of obtaining loans and other benefits from financial institutions.

Business credit reports can help to clearly and quickly illustrate a company's payment behavior and how that may affect their ability to fulfill contractual obligations now and in the future. Lenders, suppliers, and potential business partners frequently rely on these reports to determine the level of risk associated with specific companies and use that information to decide whether to do business with them.

Why would you need a credit report for your enterprise?

If it hasn't already, your company may require assistance in financing the purchase of new machinery, inventory acquisition, or expansion of operations. When unexpected economic events occur, you may need to open a line of credit to keep your business running. Short-term loans can even cover recurring expenses like payroll.

Lenders typically require assurances that borrowers will repay on time, and one way they can help manage repayment risk is by reviewing the company's credit scores and ratings on file with major reporting agencies such as Vietdata. These indicators can assist banks in determining whether to lend money and at what interest rate.

When many businesses bid on contracts or shop their services to potential business partners, their credit files are evaluated. Companies want to know they're working with companies that can deliver products on time or complete projects on time - and have a low risk of going out of business.

Aside from protecting yourself from personal liability, building strong business credit has many other advantages. Business credit, for example, may be required or helpful when:

  • Requesting higher trade credit limits from suppliers

  • Requesting lower premiums on insurance policies

  • Negotiating lease terms on equipment and real estate

  • Negotiating freight terms

  • Obtaining payroll credit

  • Winning contracts for national distribution from a large chain

  • Bidding on more lucrative contracts

  • Seeking line-of-credit increases

  • Seeking more favorable interest rates on loans from banks

  • Applying for funds to cover an unexpected emergency

How would a report from other enterprises help you?

You might also want or need access to the business credit scores and ratings of other companies. For example, if your business extends credit to its customers, you'll want to view their payment history. If you're in a growth phase and looking to partner with another company, knowing their risk assessment scores and ratings can help you determine whether they're a viable potential partner.

You can view other companies' comprehensive business credit reports, including scores, ratings, and payment history, as well as ownership information and legal events such as bankruptcies, judgments, liens, and lawsuits, with a subscription to Vietdata Credit report plan.

How to get a credit report of your enterprise or any enterprise?

Vietdata provides three different credit report packages base on what you might need: Company Snapshot, Standard Company Report and Comprehensive Company Report.

  • The Company Snapshot would give you a brief view of the company, business registration information and some key financial data of all firms established and operated in Vietnam.

  • The Standard Company Report would provide specific information about the company and its financial data for the last 3 years.

  • The Comprehensive Company Report would provide you with a detail analyses of the company and its activities, suppliers, news.

To see further information about Credit Report packages of Vietdata and choose the most suitable plan for you, please follow this link

Source: Vietdata


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