Last year, a friend called me asking for advice. Her coaching and consulting firm was stiffed for a couple grand by another business. The firm that didn’t pay her for her services was located across the country, so there was a good chance that any money she spent trying to collect would be a matter of throwing good money after bad.
“Can’t I report them to the credit bureaus?” she asked. “Probably not,” was my response. The credit reporting agencies are set up to collect large volumes of information from established clients, not one-time reports like hers.
Today, my answer to her would be different.
That’s because Cortera, a community-driven business information company, has unveiled the Cortera Credit Exchange, a new online service that, for the first time, blends business credit report data with user-generated payment experience reviews and ratings from companies’ business partners.
That means my friend could report the payment history of her customer who didn’t pay — for free. Just as importantly, she could also report the payment history of customers who do pay her on time, thereby helping them build better credit ratings.
Cortera’s press release says, “Small businesses will now be able to share payment information with their peers to make the informed decisions necessary to manage credit risk, attract favorable payment terms, optimize cash flow, and capitalize on an economic recovery.”
These days, many small businesses can’t afford to write off debts from customers who don’t pay. That makes business credit ratings more relevant than ever. If you are a small business owner, check it out and let us know what you think.
Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com, Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of Reduce Debt, Reduce Stress: Real Life Solutions for Solving Your Credit Crisis
Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.
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