OPERATIONS

A Survival Guide for OPE Dealers & Landscape Pros

Between changing tariffs, fluctuating sales and sagging consumer sentiment, a lot in your

By Gerri Detweiler 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 that the data in these 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.

First, let’ s look at the problems you may find on your business credit reports, then I’ ll offer solutions.

Hidden credit report errors cost 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. Wrong information can lead to inaccurate credit scores, and to missed opportunities. Common mistakes include:

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. This missing info creates an incomplete picture of your payment reliability, potentially making your business appear less creditworthy.

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 Left uncorrected, these outdated filings suggest your business has less available collateral than it actually does.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 if you aren’ t sure which code is right for you. Codes get updated as industries evolve, and there are hundreds of unique business codes.

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 missing accounts. 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, pick a business name that’ s not too similar to others. Get an Employer Identification Number( EIN) and use it when applying for credit.

Seasonal business pattern misinterpretat ion

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. Operations, continued on page 30

28 OPE + September 2025 www. OPE-Plus. com