Every company has a credit rating reflecting their financial ability and history of servicing loans. Suppliers, potential clients and lenders usually run credit checks on companies to learn more about their ability to service their debts and pay their loans in a timely manner. Companies with a bad credit rating will have a hard time getting business loans with convenient terms and conditions. Suppliers may also refuse to offer them goods on credit as they may fail to repay.
When it comes to company credit reports Vietnam residents should know that the vast majority of lenders and suppliers usually consider credit ratings, so they need to do their best to ensure they have a decent rating. The best way to do this is to service loans in a timely manner and pay suppliers without any delays. After all, they can report a company to credit referencing bureaus. The following are steps to take to ensure you have a decent company credit rating:
i) Check Your Report for Errors and Omissions
When you take out a commercial loan or acquire equipment on financing terms, the lender or financier is obligated to report any default to credit reporting bureaus. They are also required to report the successful settlement of debts. That is why it is crucial for every company to pull their credit report after every couple of months to check whether or not all the successful repayments have been reported. If a loan has recently been settled without default, it must appear on the report as this can boost your score. If there is a wrong entry on the report, be sure to ask the agency to rectify the error.
ii) Service Debts Without Defaulting
It is crucial you spend some time putting your affairs in order to ensure you do not default on your loans. For instance, you should cut down on your unnecessary expenses to ensure the company will have sufficient funds to service its debts without fail. In case of a late payment, be sure to contact lenders or suppliers well in advance to ask for an extension. This will also ensure the lender or supplier does not list you adversely.
iii) Create a Good Relationship With Lenders
If you are unable to service your debt, you should not just keep quiet. Ideally, you should inform your lender in advance. Most lenders will appreciate the heads-up and can even help you refinance or restructure the debt.
Please note that many firms nowadays use company credit reports Vietnam to make decisions. Therefore, you should ensure that your report is decent enough to earn you favour time and again.
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