Corporate Credit Services

Business credit is available from thousands of lenders and companies across America without using personal credit. When a business has minimal or no credit, lenders may require a personal guarantee and good personal credit.

To obtain lines of credit and loans, the business must meet credit requirements:

1. IRS Company Registration (Tax ID #/EIN #)
2. Dun & Bradstreet (DUNS)
3. Seasoned Business (2years)
4. Physical Business Address
5. Corporate Phone
6. Fax
7. Email
8. Website Domain
9. Business Listed
10. Three Business Trades
11. Business Plan
12. Tax Returns
13. YTD profit and loss

To obtain a personal or business credit report visit the following websites:

When a financial institution is evaluating a credit application from a business or corporation, the evaluation of the credit history of that business is quite extensive. In addition to the amount of money a business borrows and how well it repays those loans, a potential lender may also factor in company size as determined by the total assets of the company and number of employees. Unlike personal credit rating where all of the agencies use the same formula to generate a standardized FICO score, there is no designated standard for determining business credit worthiness.

Credit Reporting Agencies Evaluation System:

Experian

Experian’s Smart Business Reports do not evaluate the strength or weakness of a business’s credit history by using a separate numeric system of evaluation. In order to create a thorough evaluation of the business’s financial strengths or weaknesses, Experian provides a comprehensive report that includes the total percentage of on time vs. late payments made by a company. These payments are broken down into current payments, 1-30 days late, 31-60 days late, 61-90 days late, and 91+ days late. For instance, a report might indicate that a particular company made 70% of its payments on time, 20% of its payments 1-30 days late, 6% of its payments 31-60 days late, 3% of its payments 61-90 days late, and 1% of its payments 91+ days late. Given this information, the financial institution considering granting a loan to a business uses the information to interpret the risk associated with this type of payment history and determine the terms and conditions of the loan it is comfortable lending that particular business.

TransUnion

Vantage Score data design is a unique and innovative industry that was jointly developed by all three national credit reporting companies (CRCs). It combines innovative data design, characteristic leveling methods, and segmentation techniques to produce a unique, highly predictive credit risk score that analyzes data at the same point in time on the same consumer records from all three national credit reporting companies. VantageScore was developed by using an anonymous national sample of credit information from over 15 million consumers to produce a final score range of 990-501. Score groupings similar to the familiar academic scale are also used: A=901-990, B=801-900, C=701-800, D=601-700, and F=501-600. Vantage Score also levels the credit characteristics reported by all three national credit reporting companies to significantly reduce score variability. In addition, Vantage Score applies the same standard method for scoring multiple credit inquiries to avoid unnecessary negative impacts to a customer’s score. Plus, Vantage Score delivers a greater level of detail than any other commercially available multi-bureau model, including the specific identifier for the scorecard that was used and a brief profile description of the consumer. Highlights of the TransUnion business credit report include automatic selection of the 12 most appropriate scorecard based on key elements in the credit file, evaluation of a comprehensive two-year performance period, and reduction of multiple inquiries (including treating all automobile loan inquiries that occur in any 14-day period as a single inquiry) to more adequately gauge a company’s credit activity.

Equifax

Equifax Small Business Enterprise uses its Small Business Credit Risk Score in order to predict the likelihood that a new or existing small business or corporation will experience significant delinquency or file bankruptcy in the next twelve months. This evaluation is based on a combination of a business’s financial transactions (including banking, leases, trade accounts, and public records), as well as the demographics of the business. The various Equifax Credit Risk Scores assign a score from approximately 100-1000. Within this system, the lowest score indicates the highest risk of delinquency, and the highest score indicates the lowest risk of delinquency. Included with these scores are also explanations of why a particular business earned that score based on a series of coded reasons provided in the report.

Dun and Bradstreet

Dun & Bradstreet offers a variety of evaluation tools that can be used to determine a business’s credit strength or weakness. For many years, financial institutions have relied on D&B to help them determine whether to engage in business with a particular company, whether to extend credit to a company, and what kind of loan terms to offer.

D&B business credit profile is the use of a D-U-N-S ® number, or Data Universal Numbering System. In order to establish a business credit profile with D&B ®, the first step of the process is to apply for and acquire a D-U-N-S number. This unique number is assigned to a company or corporation by D&B and is an indication to many potential creditors and customers that a business has a more formalized and thorough credit history profile established.

The D&B business credit report provides an analysis of that company’s financial strength. This is determined by computing a business’s total collective equity or net worth. There are only three business credit scores: A “1” indicates a very high score, a “2” is a good score, and a “3” is a fairly low score. While a company’s financial strength is determined exclusively by the size of the company, the results of a company’s credit analysis is determined by its credit performance. For instance, a company with a net worth of $700,000 will be ranked a 1A, but based on its payment history, that company’s credit score can be 1, 2, or 3. So the combination of the financial strength and credit history can tell a potential lender a lot about a company’s financial strengths or weaknesses.

D&BPAYDEX

The predominant tool used to determine D&B business credit ratings is the D&B’s PAYDEX system. D&B PAYDEX system is one of the most dependable predictors of a company’s payment performance. After analyzing the available information about a company’s payment experiences, the PAYDEX scale provides a range of scores that depicts a company’s overall credit risk. A company that has a proven record of making payments on time is a lower credit risk, so it receives a higher credit score on the PAYDEX scale. A perfect PAYDEX score for a business is 80. This is equivalent to a FICO score for an individual of 750. A majority of financial institutions will approve financing for most companies with a PAYDEX score of 70 or better.

A company’s PAYDEX® score is calculated based on information reported to about a company’s account histories. As part of a PAYDEX credit analysis, a business or corporation is asked to provide a minimum of five trade accounts so that D&B can develop either a 12-month or 3-month PAYDEX® score for that business. With this information, it is possible for potential lenders to evaluate a company’s performance within a specific period of time.

In order to calculate a company’s PAYDEX score, D&B weighs the average credit ratings by assigning greater importance to the trade accounts with higher dollar amounts. For example, if three accounts for $75 each report that the company often pays its bills up to 60 days late, but one account for $50,000 reports that the company has paid on time every month for the past two years, the PAYDEX score for that company will still be relatively high because the payment history associated with the $50,000 account is more heavily weighted than the $50 accounts even with the 60-day late payments. The same logic is applied when the larger account reflects the negative payment history. In this situation, the company’s overall PAYDEX score will be lower because the late payments on the larger account are more heavily weighted than the smaller accounts that have been paid on time.

In order to qualify for the most favorable financing terms from potential lenders, a high PAYDEX score that indicates a low credit risk is required. A company that consistently makes its payments either on time or less than 30 days late is considered to have a low risk of late payment. A company that typically makes its payments between 30 and 59 days late is considered to have a medium risk of late payment. And a company that consistently makes its payments 60 days past the agreed date or longer is considered to have a high risk of late payment.

Credit.net

Credit.net provides business credit analysis which relies on four criteria: number of years in business, number of employees, public records, and stability within the industry. Credit.net determines stability within the industry by comparing the success and failure rate of similar businesses within that industry. A Credit.net report also includes the total number of employees a company has, its location, its annual sales, the number of years a company has been incorporated (if any), the total number of Yellow Page advertisements, any relevant credit card acceptance policies of the company, and any additional corporate relationships. Credit.net also provides a complete list of the names of the company management team, including the primary directors and officers, their titles, and their phone numbers.

Once this information is analyzed, a grading system is utilized to award a grade of A through C as an indication of the strength or weakness of a company’s credit history. The grading system itself ranges from 70-100 with the better credit risk indicated by the higher numbers. Much like an academic grading scale, an A+ is awarded to a company with a score of 95 or higher, an A is awarded for 90-94, a B+ is awarded for 85-89, a B is awarded for 80-84, a C+ is awarded for 75-79, and a C is awarded for 70-74. If a company earns a score of less than 70, this could be an indication that there is not enough credit history information available on the company to complete the evaluation.

As part of it’s business credit rating, Credit.net also provides a recommendation of the amount of credit it recommends approving as well as an overall company credit rating of one to five stars, with one being the lowest score possible and five being the highest score possible.

Accurint Business

Accurint® Business is much like Experian in that they provide public and business profile information, including credit history based on payment patterns of small, medium, and large companies. This information is then compiled into a Snapshot Report, a Company Profile Report, and Credit & Payment Profile Report, a Risk Profile Report, a Business Network Report, or a Dun & Bradstreet Report. Accurint Business does not use a unique scoring system to interpret the information provided.

PayQuo

The Client Checker PayQuo Score is a numerical indicator of how a company has paid its bills over the past four months, based on the trade experiences reported to Client Checker from its users, as well as from users of Billing Tracker time billing software.

The PayQuo Score is displayed once there has been a minimum of three trade experiences in the past 120 days. If these criteria are not met, the score will not be shown.

A business earns a 90, the highest score possible on the PayQuo Scoring range, if it pays early or according to the terms of the agreement. A PayQuo Score of 80 is earned if a business pays in ten or fewer days beyond the terms of the loan. If the business pays within 20 days of the terms of the loan, it will earn a score of 70, and if it pays within 30 days beyond the terms of the loan, it will earn a score of 60. If a business pays 60 days late, it will earn a PayQuo score of 50, and if it pays 90 days late, it will earn a score of 40. A score of 30 is earned if a business ever pays 120 days late, and a score of 20 if it pays beyond 120 days late or the payment is written off as a bad debt.

For example, if the vendors who deal with Company XYZ report that the business has paid 10 days, 20 days, and 90 days beyond terms of the loan, that company’s PayQuo Score would be (80+70+40)/3=63.

Corporate Credit Sevices:

• eTrade Bank Account Setup
• IRS Company Registration
• Dun & Bradstreet (DUNS) Registration
• Business Location
• Corporate Phone/Fax System
• Website Design Content
• Merchant Account Setup
• City + County Licenses
• Business Bank Account
• Directory Listing Combo
• Corporate E-Mail System
• Incorporate Business/Bylaws
• Online Listing
• Corporate Credit