What Does Your Business Credit Profile Say about Your SME?

Major South African credit bureau, Experian SA is creating awareness about the importance of regularly checking up on and having a good understanding of one’s business credit profile, among small-and-medium-sized enterprises (SMEs).

The credit bureau has cited poor creditworthiness as one of the biggest impediments to SME growth. Many SMEs are unaware of how their credit access, particularly to better deals and additional funding, is affected by their business credit profiles.

Improve Your Creditworthiness

All SMEs should frequently check the data under their business credit profiles, to ensure that they don’t have inaccurate negative information listed under these. Knowing what positive information is listed under your business credit profile and the associated credit behaviour will enable you to more consciously improve your creditworthiness.

Experian SA and National Small Business Chamber (NSBC) are hosting credit wellness workshops across the country for the purpose of educating, encouraging and assisting SMEs to maintain excellent creditworthiness.

What’s Your Business Credit Profile Saying?

Lenders, service providers and bigger businesses look at a SME’s business credit profile, when deciding whether or not to grant them finance, credit, a good deal or a supplier contract.

As a SME, you should always know what your credit profile is saying about you, as positive listings will put you in a position to secure better opportunities and negative information may cause you to lose out.

Also, being able to understand and glean insight from other businesses’ credit profiles that you are in dealings with will allow for better credit risk management and protection of revenue flow.

Check out Who You’re Dealing with

It’s clear that SMEs are struggling to manage their cash flow and debt, as most have overdue payments listed under their business credit profiles.

Last year, Experian SA launched Business Check, which allows SMEs to view their own business credit profiles, reports and scores, and to check out their commercial clients’ credit details.

In the same way, simply because a client has a history of paying on time, doesn’t necessarily mean they will do so going forward, especially considering the delicate state of the economy at present.

This is why, as a SME, it’s essential that you check up on both new and existing clients’ business credit profiles, to ensure you aren’t putting yours at risk by doing business with them.