Here is some business-to-business common sense: Don?t hesitate to pull credit reports on the businesses you rely upon when you are extending credit. It may not be socially acceptable if you are trying to make friends ? but in today?s small business world – it?s a reality.
If your small business is typically delivering products or services business-to-business within a 30 day or longer period, you are extending credit. As a B2B creditor, you can protect yourself.
Make it your small business policy and procedure to pull a credit report on the businesses you are depending upon.
Business Credit Reports
Credit reports are not beyond the scope of your small business. These reports are available to you at little cost and they will benefit your decision-making ability greatly. You will be able to comprehend these reports ? do not be intimidated by the process.
Providers of Business Credit Reports
Dunn and Bradstreet is a resource that will search another business?s or sole proprietor?s credit history for $61.99. You are able to make certain that a credit report is available prior to purchase.
Experian and Equifax are other online credit report providers. The exclusive B2B provider ? Creditsafe ? offers subscriptions ? around $100 per year for unlimited access ? so that you don?t have to purchase individual reports.
Credit Report Comprehension
You will be able to understand the B2B credit reports that you order because the providers of these reports have been making it simpler for the average person. View sample credit reports provided by Dun and Bradstreet as well as Creditsafe.
It is simple for you ? as a prudent small business owner ? to open a business to business credit report subscription.
Visit the credit report provider?s website and log in.
Search for and select the company you are contemplating doing business with.
View and evaluate the prospective business?s credit report before making a business decision and transaction.
No Uncomfortable Confrontation Required
A signed authorization is not necessary ? unlike individual inquiries ? so there will be no uncomfortable confrontation required to obtain the credit report of other businesses.
Don?t allow your small business to become trapped with non-paying or late-paying vendors. Make it your policy to only sell your products and/or services to other businesses who have a proven record of prompt payment.