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It is important for your business to have a good credit score, especially when negotiating financing or credit terms with financial institutions and vendors. A credit score is a snapshot of a credit picture at a specific point in time. As the credit bureaus regularly update credit scores based on a variety of factors, it is important to monitor your company’s score frequently and report any errors that may appear.
Who are the credit bureaus in Canada?
There are three major commercial credit reporting organizations in Canada:
What gives you a good credit score?
A good business credit score is not obtained immediately. Over time, the credit bureaus consider the following factors when determining your credit score:
When should you check your credit score?
There is no one-size-fits-all answer. You need to pick a frequency that suits your business. If you have never looked over your score, we recommend immediately adding this task to your priorities list. After you check it once, perhaps you will review your credit score twice a year, once a year or every quarter.
No matter how often you take this step, it is important to make it part of your routine. There may be a fee to request your business credit report. If you’re willing to wait for a report to arrive in the mail, you can order your report for free.
How can you improve your company’s credit score?
If your credit score is not great, start today to improve your credit report. Here are a few ideas to enhance your company’s credit report:
What if there are errors on your report?
If you spot an error, contact the credit bureau right away to report it. If the issue is related to data from a vendor, you also need to contact the vendor right away.
Learn what steps you need to take to fix the error. Gather all necessary documentation that may help to resolve the situation. Be diligent to ensure inaccuracies are fixed.
You have the ability and the responsibility to ensure your business credit score is telling the right story about your business.
By building your credit rating and regularly monitoring your credit score, you will ensure your business is financially stable and credit worthy.