Clear answer: yes. When you apply for a loan, the creditworthiness of your company plays a major role. Both the bank’s decision whether to get a loan or the amount of interest are significantly influenced by the creditworthiness of your company.
The bank rejects the corporate loan for negative entries
Banks first check whether your company or you as a person have negative characteristics. These negative features are, in particular, current or past collection procedures, bankruptcy proceedings or general payment practices. Each bank has developed its own procedures here, but usually carries out a negative selection in the first step. It is important to know what information is entered with a credit agency regarding the company’s creditworthiness. If you have a negative entry, the bank rejects the loan directly without having to justify the rejection.
Creditworthiness is reflected in the amount of interest, term and maximum credit volume
If this query is positive, the bank calculates the interest and other conditions of the loan in the next step. The differences in interest rates can be considerable, as a bank always tries to minimize the risk of default – or to price it with the corresponding interest. In a company with a poor credit rating, a bank wants to make more money to compensate for the higher risk of default. That is why interest rates are often higher. This can also be reflected in other conditions of the loan, such as the term, the minimum amount of the monthly installment or the maximum loan volume granted.
You can influence your loan terms yourself
Of course, if your poor creditworthiness is based on justified negative entries due to actual payment defaults or collection procedures, these cannot be corrected. However, if a bad credit rating is based on missing or incorrect information about your company, it is possible to correct this data and thereby optimize your credit rating.
So it really pays to know the creditworthiness of your company and also to check it regularly, as this can reduce the cost of your loan. To do this, you have to query your data from a credit agency to see which company information is stored. You can usually do this once a year at any credit agency free of charge.
Credit agencies are obliged to view data free of charge
According to §34 of the Federal Data Protection Act (BDSG), credit agencies are obliged to provide you with the information stored about your company once a year free of charge upon your telephone or written request (letter, fax, email). If you find faulty data in it, you must usually request that it be deleted or corrected in writing and accompanied by supporting documents.
Bankenscore’s credit check provides you with an easier way to view your company’s creditworthiness and optimize it directly online. You can find out exactly how it works and the benefits you get from it here.