Business Credit Report (BCR) is a very important document which contains in detail the company’s assets, expenditure and constitution by which it is governed.
These three aspects give a general background of the business. It can also reveal the financial health of the company.
This is very vital to an entrepreneur when he is planning to take a loan for the smooth running of the business.
In the US, the three main credit bureaus that prepare credit reports are Equifax, Experian and Trans Union. The report is useful to the entrepreneur and the lender to get a comprehensive view of the company. The figures in the report will enable the lending party to assess the buoyancy of the company and its capacity to discharge on time, the added financial obligations.
What is the aim of BCR?
The main aim of the BCR is to give the most authentic business related information of the company. This information is thoroughly understood by the entrepreneur, the lender and any other person financially related to the company before taking any financial decision.
Why do we need BCR?
We need BCR because it is the safest platform from where major financial decisions can be made. The professionally compiled data enables the entrepreneur, the lending agent and the competitor to decide the extent to which they can invest and the rate of interest that they can apply and the business position in the market.
Is it necessary to monitor BCR?
It is absolutely necessary to monitor the BCR. Just as, a rumor can mar credibility, an error in the report tarnish can the company’s reputation in the fiscal world.
Hence, it is important to monitor the BCR of not only your own company, but that of any company that associates with yours, be it a supplier or a competitor. Presence of errors can make a big difference to the company’s fortune, and hence it is very important to scan through the BCR and report any error identified to the issuing bureau.
Finally, a BCR can determine the course of business since it contains many confidential decisions an entrepreneur makes. Although, many online resources may claim to enable you to instantly access your BCR, it should be noted that the three bureaus that are authorized by the US government are Equifax, Experian and Trans Union.