How To: Fix Your Business Credit
A Survival Guide for OPE Dealers & Landscape Pros
By Gerri Detweiler
Between tariffs that are up one day and down the next, fluctuating in-store sales and sagging consumer sentiment, a lot in your business is out of your control. Here’s one thing you can control: monitoring your business credit. You can check your business credit reports and make sure they are accurate.
Not sure it’s worth your time? Keep in mind the data in your business credit reports can help your business credit directly impact your ability to secure financing, manage seasonal cash flow, and even land more lucrative government contracts and commercial orders or jobs.
First, let’s look at the problems you may find on your business credit reports, then I’ll offer solutions.
Hidden credit report errors costing you money
Business credit reports can contain mistakes. It’s not uncommon for business credit reports to get mixed up with those of other businesses with similar names. Regardless of the reason for the mistake, wrong information can lead to inaccurate credit scores, and sometimes to missed opportunities. Here are the most common business credit mistakes that can impact OPE dealers and landscape businesses:
Missing vendor payment history
You’ve faithfully paid your equipment suppliers and parts distributors for years, but those payments aren’t showing up on your credit reports. Unfortunately, not all industry suppliers report to business credit bureaus, which means that valuable payment history is not helping to strengthen your company credit. This missing information creates an incomplete picture of your payment reliability, potentially making your business appear less creditworthy than it actually is.
Zombie UCC filings
UCC (Uniform Commercial Code) liens are commonly filed with the courts by lenders or financing companies when you get secured financing or equipment loans. They aren’t negative per se, but sometimes they can appear that way.
For example, let’s say you paid off an equipment loan years ago, but the UCC filing still appears on your credit reports with no information that it has been paid off (terminated). This makes it look like business assets are encumbered.
These zombie UCC filings can block new financing opportunities and increase your borrowing costs when you need capital for inventory or expansion. Left uncorrected, these outdated filings suggest your business has less available collateral than it actually does.
Incorrect industry classification
Industry classification codes such as NAICS or SIC codes were created for government tracking purposes, but lenders often use them to help determine which businesses they will offer financing to.
If your business is misclassified under an inappropriate SIC or NAICS code, your business can appear in a higher risk category than warranted. This misclassification can affect how lenders view your business and potentially increase your borrowing costs.
Your NAICS and SIC codes should represent the main source of revenue for your business. Review options at Census.gov and reach out to them for help if you aren’t sure which code is right for your business. Codes get updated as industries evolve, and there are hundreds of unique business codes (four separate ones, for example, for professionals in the zipper industries; five for lamp shade manufacturers).
Account ownership confusion
Similar business names or changes in structure can result in misattributed accounts. You might find accounts that don’t belong to your business on your credit reports, or accounts could be missing entirely. This confusion creates an inaccurate credit profile that might not reflect your true payment history and business performance.
Tip: If you’re in the early stages of your business, or planning to form an LLC, make sure you carefully pick a business name that’s not too similar to other businesses. Get an Employer Identification Number (EIN) and use it when applying for credit.
Seasonal business pattern misinterpretation
Credit algorithms may flag your normal seasonal fluctuations as financial instability. Many businesses in landscaping and outdoor power equipment industries operate on seasonal cycles, with predictable peaks and valleys throughout the year.
This characterization of your business patterns can increase your risk profile and lead to higher financing costs precisely when you need seasonal capital.
Your action plan to clean up credit errors
Unlike personal credit, business credit reports aren’t as standardized as consumer reports. The process of checking your credit reports and challenging mistakes may feel different than what you may be used to as a consumer.
Still, you can take steps to identify and correct the most damaging issues.
Step 1: Get your complete business credit reports
There are three major business credit bureaus: Dun & Bradstreet, Equifax, and Experian. (The latter two have both consumer and business credit divisions. Consumer credit is important too, but in this case, make sure you’re looking at business credit.)
When reviewing your reports, examine them for accounts that don’t belong to your business, late payments that were actually made on time, UCC filings for paid-off equipment loans, incorrect business information, and missing positive payment history.
Tip: You can purchase reports from individual credit bureaus, or use a centralized source like Nav to get multiple credit reports and scores. That approach can save you time and money.
Step 2: Document everything
For each error you find, save or print the incorrect information. If possible, gather proof of the correct information, such as payment receipts, loan satisfaction documents, and business registration papers. Thorough documentation is your strongest asset when challenging credit reporting errors.
Step 3: Contact each bureau separately
Each business credit bureau has its own dispute process that you must navigate independently. Dun & Bradstreet requires accessing your account at DNB.com and using their dispute form or contacting Customer Service directly. For Experian, visit BusinessCreditFacts.com and complete their business information profile update form with all supporting documentation. Equifax requires submitting disputes through their business credit dispute form with specific details about each error and copies of supporting documentation.
Step 4: Follow up
Unlike personal credit disputes, business credit bureaus have no legally mandated timeframe to respond and may require multiple follow-ups. Typically, they take two to four weeks to process disputes, but it is possible for corrections to fall through the cracks.
Put a reminder on your calendar to check on the status of each dispute every two to three weeks until it is resolved.
Step 5: Address industry-specific issues
If your credit report lists UCC filings that are not updated, contact the original lender (such as the equipment finance company) and request they file a UCC termination amendment.
If that is not possible because you can’t find or get in touch with the company that filed it, follow up with the secretary of state where the UCC was filed and ask about the process for updating that information.
When dealing with missing payment history, contact major suppliers and ask if they can or will report to business credit bureaus, or consider establishing accounts with suppliers that do report. Some vendors will provide a credit verification letter upon request, and while that won’t help your business credit, it may be useful to other suppliers. (Dun & Bradstreet also offers a paid service that will add manually verified accounts.)
For issues related to seasonal business patterns, make sure your bookkeeping and tax filings are up to date so you can provide proof of your business income.
Pro strategies to build stronger business credit
While correcting errors, implement these industry-specific strategies to strengthen your profile:
Establish tradelines
When shopping around for equipment, parts suppliers or service providers, ask whether they report to business credit. Not all do.
While credit reporting may not be the sole criteria for choosing providers, it doesn’t hurt to let them know it’s important to you. Building relationships with vendors that report to business credit creates a stronger foundation for your business credit profile and helps demonstrate consistent payment behavior over time.
Monitor UCC filings proactively
When paying off equipment loans or lines of credit where a UCC lien was filed, specifically request UCC termination filings and verify that it has been completed. Don’t assume lenders will automatically clear these filings — some don’t. Set a reminder to check public records 30 days after paying off any secured debt to ensure the filing has been properly terminated.
Use business credit cards for regular expenses
Fuel, parts, maintenance items and other ongoing expenses charged to business credit cards that report to business credit bureaus can help build your profile. Most small business credit cards report to at least one of the major business credit reporting agencies.
Pay these balances on time or early each month to establish a pattern of responsible credit management. This regular activity creates a consistent record of on-time payments that strengthens your overall credit standing.
Make credit monitoring part of your business routine
Maintaining accurate business credit reports isn’t a one-time fix but an ongoing process. Monthly or quarterly credit report reviews should become a standard part of your financial routine, just like inventory checks and sales forecasting. Set calendar reminders to check your reports regularly, especially before seeking new financing or entering peak seasons when access to capital is critical.
Unlike changing government policies and economic conditions, the use of business credit reports by lenders, insurers, and other businesses remains steady and as important as ever. Make sure yours is accurate.
The time you invest in monitoring and maintaining your business credit can pay off in better financing costs and credit availability. In an industry where margins are tight and seasonal cash flow is essential, strong business credit is another tool to help provide the financial flexibility your business may need to weather challenges and capitalize on opportunities for growth.
Gerri Detweiler has several decades of experience guiding individuals through the confusing world of credit, and has earned a reputation as a reliable and independent source on personal and small business credit. Today, Detweiler serves as Education Consultant for Nav, a financial health platform that helps small businesses owners build and manage their business and personal credit, track cash flow patterns, and understand their financing options before they apply.
