Monitoring your own business credit profile can be as important as monitoring those of your customers, partners, and suppliers. Your business credit score will have an impact on other companies and institutions’ decisions about their business relationship with your business. For example:

Banks or other financial institution are notably reluctant to extend financing to businesses with sub-par credit scores. If financing is granted they may demand a higher than normal rate of interest. Similarly, potential investors are less likely to provide equity financing to businesses in credit distress.

Suppliers will check your credit score before extending you credit, and depending on the results may decline or reduce the level of credit granted.