Columbia, MD: June 20, 2013‚ÄĒIn support of National Small Business Week, the National Association of Credit Management (NACM) released a fact sheet today offering the nation‚Äôs small businesses a quick reference document on commercial credit reporting. The free fact sheet, titled ‚ÄúCommercial Credit Reporting: What Every Company Needs to Know,‚ÄĚ provides the smallest of the nation‚Äôs firms with the information they need to be able to manage their own company‚Äôs commercial credit profile.
A number of small companies only rely on the owner‚Äôs personal consumer credit to operate the business. They may not be aware of, or know enough about commercial credit and commercial credit reporting to establish and build a strong commercial credit profile, which can help these businesses acquire better bank financing and the crucial goods and services needed from other trade suppliers on an unsecured basis. ‚ÄúNACM hopes the fact sheet will help companies build their credit and support their financial practices,‚ÄĚ said NACM President Robin Schauseil, CAE. ‚ÄúIt is imperative to eliminate any misconceptions and educate companies about commercial credit and commercial credit reports, especially among small businesses, the drivers of the nation‚Äôs economy.‚ÄĚ
NACM began to develop the fact sheet earlier this year in response to reports from its membership and certain state legislators that many small businesses were falling prey to aggressive sales tactics from commercial credit monitoring services. Salespeople from some of the companies that provide such services have called small- and micro-business owners and unwittingly fooled them into believing that they needed to pay for a product that would improve and address errors in their company‚Äôs commercial credit report.
‚ÄúMuch like in the consumer credit world, companies have the right to view and address discrepancies in their credit report for free,‚ÄĚ said Schauseil. ‚ÄúMore than that, they have the right to not be taken advantage of by unscrupulous salespeople trying to scare up business by making false claims.‚ÄĚ
‚ÄúAny company, no matter how small, will have the knowledge necessary to avoid getting snared by these offers if they are armed with the information included in the ‚ÄėCommercial Credit Reporting: What Every Company Needs to Know‚Äô fact sheet. They will also have the knowledge to find and view their company‚Äôs commercial credit report and use that information to build their credit, along with their business,‚ÄĚ she added.
‚ÄúNACM was founded more than a century ago to protect the free and open exchange of credit information between businesses,‚ÄĚ said NACM National Chairman Toni Drake, CCE. ‚ÄúEducating the nation‚Äôs businesses about the important things that differentiate consumer credit from commercial credit is one of the association‚Äôs chief priorities, and that tradition continues today with the ‚ÄėCommercial Credit Reporting‚Äô fact sheet.‚ÄĚ
‚ÄúIt‚Äôs so important in today‚Äôs economy for business owners to separate their own finances from their companies‚Äô. They also need to separate their credit histories to ensure that they don‚Äôt become personally liable for their business‚Äô troubles,‚ÄĚ she said.
The full fact sheet, in PDF format, can be downloaded for free at http://www.nacm.org/images/pdfs/general_2013/NACM-factsheet.pdf. For more resources on the importance of recognizing the differences between consumer and commercial credit, please contact NACM at 410-740-5560.
About the National Association of Credit Management
NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM‚Äôs collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation‚Äôs policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. Its annual Credit Congress is the largest gathering of credit professionals in the world.
Contact: Jacob Barron, 410-740-5560
Source: National Association of Credit Management