This segment trains business owners to think like lenders and see first hand what lenders see when they look at your business credit.
Did you know that most lenders view your business credit during the business finance underwriting process?
When you submit an application for a business line of credit, your business credit is reviewed!
Even your banker may not know that business credit is reviewed during the underwriting process.
Small business financing is typically automated, it is the creditors underwriting software that says yes or now, determines approval amounts and suggest the terms.
This means business credit reports are reviewed automatically.
This is why it is possible for even bankers to not to know that business credit is reviewed and in return most business owners are equally unaware.
Here are a couple of examples of how business credit is viewed by various creditors. All of the business credit agencies market their data to creditors for a fee. They package data and risk analysis, so creditors don’t have to develop their own. That’s right, business credit agencies not only offer you, the business owner, credit reports, but they also offer data to creditors.
For example here are some of D & B various options. You can see that anyone can purchase a business’s report for a single check. They also offer memberships where a lender can pull large volumes of business credit. Most business credit agencies also offer a verification only process where they verify the individual and business validity.
Lenders first defense against lost is preventing fraudulent applications which are very prevalent.
They are looking to see that the business and individual are real and authorized to sign on behalf of the company.
This sample of a report shows that it is very similar to the full report a business owner pulls. That said, d & b combines many factors and gives more of a summary including business information, scores, public filings and so on.
Lenders are looking to verify quickly and underwrite applications.
Business Experian offers similar services where lenders or other entities can pull business credit reports, mitigate risk and verify borrowers.
Some lenders use services like credit safe to review a snapshot of all credit reports combined.
You can see there is a very detailed summary page that offers company information, general payment terms, credit limits and exposure. They offer their independent scoring and risk exposure score that lenders can rely on during their underwriting.
By continuing to sort they can see trade payments, risk ratings, legal filings, company information, ownership and so on.
Another feature many of these services offer is an actual underwriting engine that takes your requirements into consideration and spits out a lending decision, approval amount, term and other factors.
You can see that lenders have many great options to review business credit. This can be achieved on a small scale or large scale.
Most creditors pay business credit agencies for automated business credit underwriting. The creditor outlines their criteria; the program builds in the criteria; the automated system spits out a response including the amount and terms based on the risk.
Because of limited regulations anyone can view another businesses credit report, and declines don’t have to site that the business credit application was declined because of the information on the business credit report.
The use of business credit during the underwriting process has increased! As business credit agencies continue to improve their offerings and the validity of their data lenders, use them more and more.
We foresee that this practice of using the business credit within the underwriting process will only increase.
You heard this right, now more than ever business credit is reviewed.
So what does this mean to you? We believe it is time to prepare your business credit now.
Now you are thinking like a lender. Established business credit is a key to your success.
Did you know that most lenders view your business credit during the business finance underwriting process?
When you submit an application for a business line of credit, your business credit is reviewed!
Even your banker may not know that business credit is reviewed during the underwriting process.
Small business financing is typically automated, it is the creditors underwriting software that says yes or now, determines approval amounts and suggest the terms.
This means business credit reports are reviewed automatically.
This is why it is possible for even bankers to not to know that business credit is reviewed and in return most business owners are equally unaware.
Here are a couple of examples of how business credit is viewed by various creditors. All of the business credit agencies market their data to creditors for a fee. They package data and risk analysis, so creditors don’t have to develop their own. That’s right, business credit agencies not only offer you, the business owner, credit reports, but they also offer data to creditors.
For example here are some of D & B various options. You can see that anyone can purchase a business’s report for a single check. They also offer memberships where a lender can pull large volumes of business credit. Most business credit agencies also offer a verification only process where they verify the individual and business validity.
Lenders first defense against lost is preventing fraudulent applications which are very prevalent.
They are looking to see that the business and individual are real and authorized to sign on behalf of the company.
This sample of a report shows that it is very similar to the full report a business owner pulls. That said, d & b combines many factors and gives more of a summary including business information, scores, public filings and so on.
Lenders are looking to verify quickly and underwrite applications.
Business Experian offers similar services where lenders or other entities can pull business credit reports, mitigate risk and verify borrowers.
Some lenders use services like credit safe to review a snapshot of all credit reports combined.
You can see there is a very detailed summary page that offers company information, general payment terms, credit limits and exposure. They offer their independent scoring and risk exposure score that lenders can rely on during their underwriting.
By continuing to sort they can see trade payments, risk ratings, legal filings, company information, ownership and so on.
Another feature many of these services offer is an actual underwriting engine that takes your requirements into consideration and spits out a lending decision, approval amount, term and other factors.
You can see that lenders have many great options to review business credit. This can be achieved on a small scale or large scale.
Most creditors pay business credit agencies for automated business credit underwriting. The creditor outlines their criteria; the program builds in the criteria; the automated system spits out a response including the amount and terms based on the risk.
Because of limited regulations anyone can view another businesses credit report, and declines don’t have to site that the business credit application was declined because of the information on the business credit report.
The use of business credit during the underwriting process has increased! As business credit agencies continue to improve their offerings and the validity of their data lenders, use them more and more.
We foresee that this practice of using the business credit within the underwriting process will only increase.
You heard this right, now more than ever business credit is reviewed.
So what does this mean to you? We believe it is time to prepare your business credit now.
Now you are thinking like a lender. Established business credit is a key to your success.