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Business Credit Report
Business credit report refers to an assessment of the past financial behavior of a business entity in terms of borrowings, repayment practices, over all control of debt, stability of the business, major financial incidents in the past etc.
Only based on this credit report, the credit providers and banks will assess the credit worthiness of a business. It will determine the risk for the credit provider and credit worthiness of the company. Higher the credit worthiness of a business, lower the risk for the credit provider. So he will charge only less interest rate for the business. On the other hand, if the credit report reflects poor credit worthiness of the business, the credit provider will charge higher interest rates to cover his risk.
In simple words, a business credit report is the statement of a business's ability to reimburse a debt. The business credit bureaus collect information about the credit transactions of the businesses to establish business credit reports.
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