As an entrepreneur or small business owner, knowing the credit score of your suppliers, competitors and business partners will help you make smart financial decisions, and can inform the financial terms you agree to with a supplier or subcontractor.
For someone with a poor credit score, business owners will want stricter terms on contracts, with potentially harsher penalties for late payments or deliveries, and possibly other stipulations as well, in order to hedge their bets and play it safe.
For those with good credit scores, businesses can relax and be more generous when it comes to terms they might set or agree to with a third party. Of course, knowing a credit score of a competitor can potentially inform your business strategy. For example, the credit score of a competitor will give you a good idea as to how likely that competitor will be to secure bank loans or extra credit lines in order to make improvements, invest, buy additional product, make physical improvements, or enter into new markets.
Credit scores are so valuable because they are looked at by banks, credit card companies and other financial institutions as indicators of how risky a potential borrower is, and banks and lenders set lending limits and interest rates accordingly. The great news is that this same information is available now to small businesses, and can help empower you to make smarter decisions with your money in terms of whom you do business with, when you do business, and how you approach your competition from a business perspective. Look up credit scores at Duedil.com now to start making better decisions with your money, and know more about your business partners and suppliers.