What are the top 6 benefits of a real-time business credit score?

Thanks to open banking, businesses can now discover their real-time credit score and access a wider range of financial services and insights. If you are aware of your credit score it will be easier to negotiate with partners and access affordable finance. And what’s more, you can monitor and improve your business credit score to ensure if anything changes you are the first to know.

But what are the top 6 benefits of a business credit score, powered by open banking?

1. Access to Comprehensive Financial Data: Open Banking provides businesses with a streamlined way to share their financial data, including transaction history, income, and cashflow, with credit reference agencies and lenders. This allows lenders to make more informed decisions about a business's creditworthiness.

2. Real-time Data Updates: Traditional credit scoring models often rely on historical financial data, which may not accurately reflect a business's current financial status. Open Banking enables lenders to access real-time data, providing a more updated view of a business's financial situation.

3. Improved Credit Assessment: By having access to a broader and more current set of financial information, lenders can assess credit risk more accurately. This may lead to better credit terms and interest rates for businesses with sound financial profiles.

4. Alternative Credit Scoring: Open Banking data can be particularly beneficial for businesses with limited or no credit history, e.g. a newly established company. Lenders can use this data to assess creditworthiness based on factors such as cashflow and revenue trends, rather than relying solely on traditional credit scores.

5. Credit Monitoring: Open Banking platforms often include tools for credit monitoring and financial management. Businesses can use these tools to track their credit scores, identify areas for improvement, and take proactive steps to enhance their credit profiles.

6. Access to More Funding Options: A solid business credit score, powered by open banking data, can open doors to a wider range of financing options, including loans, credit lines, and trade credit from various lenders and financial institutions.

Would you like to check your business credit score and drive your business forward?

Get your Credit Passport® score, powered by open banking, for free.