Similar to “Thin Credit File”, the scenario around Negative Marks on a business credit file normally affects businesses which are otherwise confident about their credit position.
A business may feel that it’s an on-time payer with a long history of operating within existing credit lines. One would think that this should be the secret to successful issuance of further credit lines, so perhaps the business applies for factoring, a bridge loan, or a new trade account for supplies.
Then, after the research and time spent applying, the credit request is declined!
Only on inspection of a credit report does a business find a negative mark. Some typical scenarios include
- a member of staff dealing with a particular debt had left the company suddenly with no hand-over. This means other staff had no idea that a debt exists at all
- a former supplier has inadvertently lodged a claim against the wrong company – YOUR company! Your business is now liable for someone else’s debt
- debt reminders and collection notices persistently went to a partial or incorrect address. The lender believes they’re sending to the correct address and the creditor believes there is no liability. The gap in communications causes escalation by one party and complacency by the other.
Whatever the reason, this is now a judgement against the company, no one has been made aware of it and now the company carries this for years to come.
CreditAchievers.Today can help!
Why not work with us from just $149 to learn the details of what’s on your business credit file, and have a 15 minute consultancy with us to identify top tips to address problems?