Credit reports are vital for new businesses, especially given the current economic climate, it has been suggested.
It is "very important" for new businesses to have credit reports when seeking finance, a sector commentator has suggested.
Bill Barclay, managing director of Galapark Finance, explains this is "especially" true given the current economic climate.
He suggests this is because firms may be seeking a particular line of credit and available sources of finance could be "snapped up" by competitors if a business is held in the wrong queue due to issues with their credit report.
Mr Barclay explains the first thing managers of small businesses should do is ensure that both their personal credit report and the one for their firm are in order.
He adds: "Mistakes and human errors are made and it's not until you need that credit report that you realise it's on there. It is quite easy to get your credit report now and it's not a huge thing."
Mr Barclay suggests that many firms do not get credit reports before seeking funds due to a lack of planning, recommending that getting one should be "one of the first things" that is sorted out before making an application for finance.
Should they fail to do this, fill out an application incorrectly, or put false information on a credit report, it could damage the relationship between the business and lender, he concludes.
Mr Barclay's comments follow the publication of the latest analysis of reported fraud in the UK by business advisory firm BDO Stoy Hayward, which found fraud in the finance and insurance sector increased 15-fold in the first half of 2008.
