Review the company credit report to maintain a healthy score
Building strong credit is essential for organizations to cultivate growth, but not keeping an eye on the company’s score can lead to future struggles. According to a recent study by the Federal Trade Commission (FTC), almost 20 percent of consumers surveyed found an error on their credit report that was not rectified until it was disputed. Inspecting the business credit report regularly and maintaining every account can help companies catch any errors that would affect the business in the long term.
Financial struggles can result from incorrect billing
According to Pittsburgh NBC affiliate WPXI, business owner Gary Lindner nearly lost his company due to a mistake on his organization’s credit report. An energy services provider incorrectly cited Lindner’s company, Atlantis Custom Aquariums, for being behind on the organization’s accounts, causing his bank to remove the business’s line of credit. The accounts in question were not his and the errors were resolved after Lindner disputed the charges, but the issue remained on his company’s credit report.
“It dropped my score significantly, enough that I could not rent,” Lindner told the news source.
Monitoring the company credit score may protect against error
Although there is no guarantee that severe errors will not happen to companies that take precautions, financial experts suggest organizations be proactive in protecting their score.
According to Credit.com, credit reports contain data on the company’s information, loan histories and collection records, so many times errors show up. Keeping all accounts and details about the business up to date can reduce the likelihood of mistakes falling unnoticed. Companies might want to track all accounts and annually review the business’ credit report to avert any errors from affecting the score. Experts advise organizations in similar situations to Lindner’s to stay in communication about disputes to prevent credit bureaus from neglecting the issue. The longer the error stays on the organization’s report, the harder it will be to maintain a good score.
Companies may also sign up for alerts about their score to help monitor activity and prevent fraudulent charges to be placed on accounts. Choosing reliable lenders and creditors with strong histories of reporting any errors to credit bureaus can assist businesses in managing their line of credit.
Businesses that review their score frequently have a stronger chance of noticing and disputing any charges. Resolving issues quickly can help reduce the chance of a drop in the company’s credit rating and help the business grow.