Why they review the credit bureau when requesting financing

Why they check the credit bureau when asking for financing


Many entrepreneurs wonder why they review the credit bureau. When requesting financing for your business, most formal institutions will analyze your credit bureau to evaluate your behavior when paying other loans. This helps them analyze the risk of lending you money. The better your record is, the more benefits you can get for your company.

Understanding the importance of the credit bureau will help you obtain better conditions. Below we explain what the financial institutions review in the credit bureau:

Credit score

The credit score is a score that goes from 300 to 850 points and serves as an indicator to evaluate your behavior when paying off your credits. This score varies all the time and the higher it is, the more likely you are to obtain new financing in the future.


other debts



Having several credits at the same time reduces the probability of obtaining a new one. Banks and online platforms analyze the debts your business has to calculate your ability to pay. It is essential that before applying for a loan analyze your ability to pay, so you will know how much you can pay per month and it will be easier to settle it.

Your behavior when paying


Another component to evaluate in your credit history is your payment behavior. That is, how much do you delay when paying your loans or financing, or if your credits have been settled in installments. Paying on time will help you obtain better conditions in the future, since the risk of lending is reduced.
If you delay in any payment but you catch up, the information is updated almost immediately.

Consultations from other institutions

Having too many inquiries from your bureau by banks or Sofomes can be an alert for the institution in which you are requesting new financing. When you get many loans you increase the risk of not being able to liquidate them and fall into an over-indebtedness.

There are several elements that are taken into account by your credit bureau when analyzing a financing request for your business. Do not be afraid to appear in the bureau, better use it in your favor and start building a better record to obtain larger amounts and terms, as well as better interest rates.