Not reporting your customer's credit history yet? Here are a few things to consider.
Reporting your customer's credit history promotes on-time payments. Having a history of timely payments will give your customers an opportunity to establish and build credit worthiness. Therefore, if they know you are reporting their credit history they have more incentive to make timely payments.
Reporting can reinforce incentives to manage credit wisely by avoiding delinquencies and defaults.
Reporting credit improves the reliability of the entire market therefore lowering costs of making credit available.
Sharing credit history gives other creditors the tools they need when extending credit to your customers. This helps to avoid overextending your customer and helps keep them on track to paying their other accounts on time.
If your business needs to turn an account over to collections, a history of reporting gives more leverage to collect a debt.