Business Credit Checks: How to Prepare for Yours
Any sized business can apply for financial loans of support for multiple reasons. All of which go through the same credit check to ensure they’re eligible to apply. This process also protects both you and the lender from falling into financial difficulties if you’re unable to make repayments. This article goes into the importance of credit checks and how you can prepare your business loan application.
What is a Business Credit Check?
A business credit check is a common process where banks and financial services review your application before offering a loan. This check confirms your business’s ownership information and financial history, as well as your profits and liabilities over a period of time. It doesn’t affect your credit score, but it confirms your eligibility for your loan application.
What is a Business Credit Score?
A credit score is issued to a business based on several factors. This protects you and the lender, ensuring your business is in a financial position to obtain and repay a financial loan. Your score can also influence the terms of your agreement, and those who hold better credit scores (700 or higher), often have more financial options available to them.
How to Prepare for Your Credit Check
To be in the best possible position for securing business financial support, there are a few actions you can do now in order to make the process quick, stress-free and successful:
- Update Your Details
Start by contacting your relevant credit bureau and ask for a copy of your credit file. You can then make sure everything is up to date and help the process move along faster.
- Review and Improve Your Credit Score
You can easily check your business credit score online. If yours is not in a position to obtain the more favourable loans, then you should consider ways to improve your score such as: making repayments on time, avoid going over your overdraft limit, ask for feedback from suppliers, illustrate your healthy turnover, keeping your information up to date.
- Check Your Financial Accounts
You should be regularly checking these anyway but even more so before applying for a business loan. This way you can check they’re accurate before submitting your application, and any concerns can be addressed beforehand. You may also need to show a detailed profit and loss statement, along with your balance sheet.
- Be Organised
It sounds simple but by ensuring your documents are up to date, clear, in the right format and cover the set time frame, the whole process runs a lot smoother. If you’re unsure on how to obtain any of these elements, or to check whether they’re correct, contact Busby Finance and we’ll be happy to assist.
- Running a Business Credit Check
Once you have everything in order, the next part is down to us. We’ll collate and assess all your information and once approved, your dedicated Account Manager will contact you to discuss your options. If all your paperwork is correct, this process is usually completed within 24 hours.
Get in Touch Today
If you’re ready to submit a loan application or not sure where to start, get in touch with our expert team at Busby Finance, and we’ll support you through the entire process.
