What is a business credit report?

Importance of Monitoring Your Business Credit Report

A business credit score is the measure of creditworthiness of a business. It is made up of a variety of variables to determine a business's financial status and its financial risk level. The credit ranking ranges differ at companies, but at Credit Scan the range is from 1 to 6, with 5-6 being high risk, 3-4 is an average risk, and 1-2 is low risk. A business credit score is determined based on factors like debt, history of payment and general risk you can learn more about how to check business score here. Each credit report agency considers factors such as length of time in the company, timely payment of bills, late payments and the amount of debt and credit available. Nevertheless, each agency has its particular scoring style and qualifications.

Why is it important?

If you plan on growing a profitable business, need a Job or even better standard of living. Then you need a creditworthy credit report. Below is some importance of business credit report:

Quick loan approval

One of the easiest ways to get out of a financial crisis is to apply for a bank loan or to look for alternative financing options. Not all businesses that apply for a loan get this loan grants. The lack of outstanding credit information on the company's credit report is one of the many factors that affect credit approval. Check out here for more information on how to check credit information online.

Higher loan limit

Banks' loan department provides loans to companies with high credit scores and good report. A favorable company credit report indicates an organization can meet its financial obligations. The better the report on business credit, the higher the loan limits your business can qualify for. This means that to obtain access to credits, you must be able to apply for funding. Focus on your company credit reports now and among many others, reap all these advantages.

Helps attract more business investor

A business that has a good credit report will be a positive factor considered by potential buyers. An investor will only boost your business after checking and verifying the credit report for your business. No investor would love to get involved with someone whose credit report indicates they have past finance mishandling.

Employment requires credit report checks.

As apart of the recruiting process, many employers carry out credit checks. Note that employers review credit reports, not credit scores. If you haven't shown financial responsibility, a prospective employer might refuse to hire you. For example, the employer might think your debt level is too high for the offered salary. Some employers often check credit scores before offering a promotion or raise, especially for financially related or executive positions. Most companies now carry out credit checks to see whether they can trust you with the company's finances or properties. You can run into problems finding work if you have a background of not being financially responsible.

Lower rates on loan interest

The interest rate that a business owner pays is tied to the company's credit score. If you have a good credit score, you will qualify for a bank's lowest interest rate. A good credit report is a sign you are repaying your debt on time.

Malaysia credit report sample

The Credit Report provides the following detail about a borrower's credit:

  1. Outstanding credit(s)
  2. All credit facilities the borrower obtains, which are now pending, either under the category-

    • Name of the borrower
    • Joint name with a different borrower(s)
    • Name of a sole proprietorship or partnership in which the borrower owns the partnership or the business
    • Name of a qualified body to which the creditor belongs
    • Company name.

    The credit report excludes credit facilities that are entirely settled.

  3. Special Attention Account(s)
  4. All outstanding credit facilities, under the close monitoring of the financial institutions involved.

  5. Application for credit
  6. All applications accepted for the applicant in the preceding 12 months and pending applications. Below is an image sample of a credit card report.

In the credit report above, you can see all the important details provided and how an employer or investor could pick this up to know about your credit score.

Where to get a credit report in Malaysia?

Looking for a business credit report to mitigate your debt default risk when conducting business dealings in Malaysia with an individual / single owner/partnership/company? then click here at credit scan Malaysia we provide:

  1. Company profile
  2. Enhanced Company Profile
  3. Business Profile
  4. Corporate Information from SSM
  5. Individual Business Profile

Are you in Malaysia and need a credit report? Visit credit scan today!

It's only natural that you need a credit report for that business you want booming in the next few years. Highlighted above is the importance of having a positive credit report, find out more credit reports from Credit Scan Malaysia.

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