The creditworthiness and creditworthiness of your company is one of the most important factors when taking out a loan. By evaluating your company’s credit rating, the bank tries to accurately assess the risk of default before concluding the contract. This information from the creditworthiness is combined with numerous financial data and evaluated in internal bank rating procedures.
Banks request information from the company itself and from credit bureaus
Two sources are generally used to determine the creditworthiness of the applicant company. On the one hand, the company is asked to provide its own information. This includes, for example, information on the latest annual sales, annual surpluses, liabilities and collateral. On the other hand, credit rating profiles of the company are queried from credit agencies. Banks often query different profiles with the same credit rating in order to receive as much information as possible.
The credit bureaus store, among other things, information about whether loans and bills have been reliably paid in the past. There may also be information about outstanding loans as well as collection or court data. If clear payment errors have been saved at the credit agency, the lending bank can view this information.
Incorrect corporate credit data can lead to high interest rates or even a loan cancellation
It is understandable that past payment difficulties, a poor balance sheet or a lack of collateral have a negative impact on the company’s credit rating. In particular, outdated or incorrect entries can also worsen the creditworthiness and creditworthiness of companies. Then the bad credit rating can lead to
1. a loan is canceled,
2. a loan is offered at overpriced interest,
3. or the duration and the volume are negatively influenced.
Due to such factors, the individually offered interest rate can differ significantly from the advertised interest rate of the bank. For example, if banks advertise with interest of 1.8 percent or more, you may still be offered an interest rate of 6 percent or higher due to your creditworthiness. If the reason for this is simply an old or incorrect entry, it is very annoying.
Creditworthiness data can be corrected and optimized – always keep an eye on creditworthiness and creditworthiness
Unfortunately, incorrect information cannot always be avoided. Credit bureaus collect a lot of data, which can lead to errors. It is therefore always important to keep an eye on your creditworthiness information and to check that it is correct on a regular basis.
Bankate helps you to easily, free of charge, check and correct your corporate creditworthiness and creditworthiness. In this way you can ensure that you are not penalized by incorrect and / or incomplete entries in the lending process. We also show you what other information banks use when lending and how they evaluate it.