Why does your commercial credit scores mean a lot?

Commercial Credit score is really important for the whole business process. Using this tool well will make your business move smoothly in expanding business scope. Just like Dun & Bradstreet, Experian, & Equifax, eGTCP has its unique advantages in Chinese supplier’s credit status monitoring.

Understanding Commercial Credit Scores & Reports

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The concept of creditworthiness dates back to the early 1800s, ever since there have been lenders there has been a need to assess a borrower’s risk level. It was not until the 1970’s, when the Fair Credit Reporting Act (FCRA) was passed, that borrowers were protected from lender bias having an impact on their likelihood of loan approval and rates. Consumers are offered a variety of protections and security under the FCRA of 1970 and its amendments in the 1990’s and 2003, but businesses and corporations were left out of the FCRA. To this day, businesses are not protected under the FCRA and business credit is highly unregulated. Therefore, business owners can experience limited success and stunted growth if business credit profiles, scores, and indexes go unmanaged.

The Bureaus – Dun & Bradstreet, Experian, & Equifax

Dun & Bradstreet, Experian, and Equifax have roots that date back to before the turn of the century. All three maintain a global database, separate from one another, that contains information and data on millions of businesses and consumers.

According to D&B: Their commercial credit scores “…predict the likelihood of a business paying its bills in a severely delinquent manner (91 days or more past terms), obtaining legal relief from its creditors or ceasing operations without paying all creditors in full over the next 12 months. D&B defines severe delinquency as a business with at least 10% of its payments 91 days or more past due, based on the information in D&B’s commercial database. The score ranges from 101 to 670, where 101 represents the highest probability and 670 represents the lowest possibility of delinquency.“

Risk Class – “Separates businesses into five distinct risk groups where 1 represents businesses that have the lowest probability of severe delinquency, and 5 represents businesses with the highest probability. The credit score class allows you to quickly segment new and existing accounts according to risk to determine appropriate marketing or credit policies.”

Percentile Norms – “Represent the average score and percentile for all scorable companies with similar demographics, and they can be used to benchmark where the company stands relative to the norm for its peer group.”

Distribution of Commercial Credit Score Risk Class

“The table below illustrates the distribution of the Commercial Credit Score Class in the Dun & Bradstreet Business Universe. In addition, this table displays their associated Percentile Ranking and Score, along with the Delinquency Rate.”

What to Look for In a Business Credit Repair / Building Company?

Businesses need to be more proactive – just because credit is not affecting you today does not mean it should be pushed off until tomorrow. Most businesses have a plan for eventual expansion and will need a strong and established business credit profile on their side in order to gain access to loans, leases, lines of credit, new partnerships/accounts, and government bids. Pushing your business credit down on your ‘to-do list’ is only going to further frustration when it comes time for growth.

Each business credit reports includes scores and indexes that are used to assess and predict a business financial standing and payment habits.

eGTCP has years of experience in fixing, correcting, and monitoring business credit profiles from all three of the major credit bureaus. 

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4 Steps to Build Your First Business Credit Report

While every business owner has a personal credit report, not every business has a business credit report. A personal credit report is created the moment an individual with a Social Security number accepts his first job or applies for his first form of financing. However, a business credit report is not automatically created and there are a variety of steps that must be followed in order to establish this very important business financing tool. Here are the preliminary steps you must take to build business credit:

Properly Establish Your Entity

Operating as a sole proprietor would make it very difficult to establish and build a quality business credit profile. So the first thing that you want to do is plan to incorporate your business as either a C-Corp, S-Corp, or Limited Liability Company (LLC).

This will also involve obtaining an Employer Identification Number (EIN), opening a dedicated bank account for the business, setting up the business telephone line, setting up the business website, setting up the business location, and making sure to have a clear separation of personal and business affairs. Other aspects associated with properly establishing your entity include having proper levels of insurance, developing a quality business plan, and making sure your legal advisers are in place.

Register the Entity With the Major Business Credit Bureaus

To make sure your payment history from vendors, suppliers, and creditors that report to business credit bureaus is recorded, you have to make sure to set up a business entity profile with the two major business credit bureaus. This will include both Experian Business and Dun & Bradstreet (D&B). With D&B you will receive a D-U-N-S number and a D&B PAYDEX Score; with Experian you will receive an Intelliscore Plus. Both are measured mainly using a scale of 1–100, with a score over 80 considered the best tier. It’s best that once you establish your profile, that you also set up some sort of credit monitoring; that way you can verify each month that everything is being reported properly and efficiently.

Begin Building the Business Credit Profile

This process could be a bit difficult, as not every creditor reports their information to business credit bureaus. So your research here would be to find those creditors that, in fact, would report your on-time payment information, so you could build your report history.

Shared Secured Loans and Secured Credit Cards

These can be provided by your local credit union. With both, you will deposit money into a bank account and then with the shared secured loan, you will take out a loan on the money deposited, using the deposit balance as security. As you pay back the loan, that amount of the secured balance becomes “available.” This product is great because it’s reported to the business credit bureaus as a regular loan from the credit union. The same would work with the secured credit cards, where you establish a line of credit using money from your deposit account, with the reporting showing up as a regular credit card on the business credit report from the credit union. A business would find that using one of these products would prove to be much easier to establish a business credit history than using one of the various companies below.

Various Companies

These can include companies such as Grainger, Uline, Quill, OnDeck, and a variety of other companies that would report the on-time payments to the bureaus.

Continue Building Your Business Credit Profile

After a solid six to 12 months of using the above beginning basics of building, you could now try to apply to the variety of business credit card companies to add additional trade lines. In addition, seek to reach out to various vendors, suppliers, and consultants for your business as many times they will offer trade credit, which could also be reported on your business credit report for building aspects. Note that as you go forward, you want to make sure to continue making all payments on time and never miss a payment. It’s also best to make payments much earlier than scheduled.

After a solid 12 to 24 months of utilizing the above strategies, your options for business lines of credit, leasing, term loans, asset-based lending, lower APR business credit cards, more attractive trade credit structuring, etc., open up as your business maintains its well-structured business credit report.

As one of the leading supply chain platform in China, egtcp.com offers a variety of credit report of Chinese and overseas companies. It’s a good step to take before marching into the big market in China.

Credit Inquiry into Chinese Company

Know Your Trading Partner’s Credit Status Anytime& Anywhere

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credit inquiry-know your partner's credit status to avoid trade risk

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United States has suspended health funding for Kenya

Health problems are always the focus of the world. In Kenya, services are provided by health centres and dispensing clinics, though these often lack facilities and trained staff.

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 With many health professionals leaving Kenya to find posts abroad, there is a severe shortage of medical workers across the country. And medicines are not available free, poor families often go without treatment when they are ill.

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An easy way to find trusted Chinese suppliers

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[FREE] Business credit score checking you may be interested

However, U.S. suspends funding to Kenya's health activities recently.

USAID Kenya and East Africa Contracting Officer, Brian Woody however said the funding for procurement of commodities and equipment related to life-saving treatment, prevention, outbreak or emergency response have been exempted.

Woody cited activities that directly strengthen county health systems will still be funded but noted that salaries and wages for all Global Security Agenda (GHSA) and PEPFAR staff such as project coordinators, administrative staff, supply chain officers, financial officers and field epidemiology and laboratory training program staff will be affected.

Woody said all its officials should immediately refrain from contracting any business with the health department.

"However, whether you receive a separate letter or not, you are to refrain from any activities further specified in this letter and or inform your contracting or agreement officer immediately," he said.

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Other activities the agency will not fund include meetings, events, and workshops as well as the printing of communication material such as brochures, training materials, and guidance documents.

Woody stressed that any activities conducted with the health ministry during the period of suspension will not be reimbursed by Washington.

Health issues need funding or your life will be threatened, business need founding or your career will have a lot of risks.

Our credit card support your global trade business. You just need to BUY NOW, and PAY LATER. eGTCP.com protect your purchase roundly.

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We, eGTCP, welcome you to apply for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started! 

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Email: service@egtcp.com     Tel: +86 400-159-8448

                                                            

99% credit card holders don't know the art of 'playing' the interest

In the past, credit cards were primarily used for bigger purchase, but with a recent change to cashless businesses there is a trend of charging small purchases into your daily life.

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Once a woman from Cali used her credit card to purchase a coffee and a doughnut, KPIX 5, a CBS affiliate in San Francisco reports.

“I can keep track of what I’m buying,” said Megan Supina, about paying with a credit card.

Supina is among an increasing amount of people who are choosing credit cards over cash for most transactions – big or small.

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Whether they swipe, tap, or pay by phone, a recent survey from creditcards.com found 17 percent of cardholders now use plastic for purchases under $5. That’s up from just 11 percent last year.

And Bankrate found nearly 10 percent of consumers don’t carry any cash at all.

One of the reasons is that a growing number of businesses and restaurants are choosing to go cashless. They also say accepting plastic only speeds-up service and creates a safer environment for employees.

Credits cards are a safe way to go.

And Creditcard.com’s Matt Schulz points out paying with credit is safer for consumers too, because you can dispute charges on your card if there is a problem with a product or service. And if your card is hacked to stolen, you’re protected from fraudulent changes.

Another plus? Credit card benefits

“You get points for travel…It adds up,” said credit card user, Jay Deitcher.

SEE ALSO:

An easy way to find trusted Chinese suppliers

Here’s China’s best logistics service providers you are looking for

[FREE] Business credit score checking you may be interested

But there are still people out there that prefer cash over card.

Cash user Richard Slade said many retailers require a minimum purchase when using a credit card and studies show people spend twice as much when paying with plastic.

Regardless of it all, experts say credit card use will continue to rise and so will the number of businesses no longer accepting cash.

If you want to buy some products for daily life, visit a Chinese website, choose some items into a cart, and pay with your credit card. That easy! Business men in China are free to use a credit card to purchase from trusted suppliers, for more to be continue.

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We, eGTCP, welcome you to apply for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started! 

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You can also contact eGTCP.com directly via mail or phone.

Email: service@egtcp.com     Tel: +86 400-159-8448

                                                            

How to Maximum Your Credit Score to Benefit Your Small Business?

1/5 British adults don’t really know what a credit score is despite many of them having been turned down because of credit in the past, a survey looking into the understanding of finances nationally has revealed recently.

The survey which was conducted by specialist credit card provider set out to gauge public understanding of what credit is, how credit affects life and more of if they have an idea of how to improve their credit score.

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19 percent of the native people admitted to us that they have never checked their credit score and a nearly 20 percent confessed that they have been turned down because of credit.

Among those who had been denied, 52 percent said they had been rejected to apply credit cards and 34 percent said they have been rejected to apply personal loans. 10 percent said they realized they had a bad credit score when they were turned down for a mortgage.

    

When they were asked several questions relating to credit, 10 percent of them assume regularly checking the credit score will affect your rating and another 10 per cent believe that the credit score will be better if you don’t borrow a big amount of money, both of which are indeed not correct.

The survey also revealed 80 percent assume you only have one credit score, when in real life people may have more than one credit score. For instance, there are three credit breeds in England, Equifax, Experian & TransUnion, and each of them holds different information about you which depends on your purchasing record.

Sion O’Connor concludes, “It’s worrying how little understanding people have about credit ratings when they dictate a large part of our lives. Building a good credit rating is important to be able to borrow money for the important things we want in life, such a mortgage or car finance.

“We advise people to stop applying for credit until you have improved your credit score, to get on the electoral register, make sure you pay your bills on time and, in the long term, consider using a credit builder card.”

“A credit builder card helps improve your creditworthiness by demonstrating that you can borrow money and meet the minimum payment each month.”

Thus, we hope you are trying to know or check your existing credit score. With it, you can definitely understand your limits. If you are doing business, especially trying to trust others, upon understanding who you are and what you have very well, you’d better check your business partners’ credit score. If his financial state is green, you can pass to cooperate with him. In this way, you are saved when you are trapped or cheated based on knowing nothing about your partner. Why not?

We have summed up some good passages online about credit inquiry. If you are in need to better your business, here is the link for a free check.

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We, eGTCP, welcome you to applying for GTCP(Great Tao credit purchasing card), you can get $10,000 immediately, buy more, pay later, let's get started!

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