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How to Get a Free Credit Report Sample

Your business credit isn’t the only thing that affects your ability to get funding.  Still, it is a huge piece of the pie. One way to see your business credit and get a feel for where you stand is to get a credit report sample.

A Free Credit Report Sample Can Help You Know Where to Start with Funding and Fundability

Unlike your personal credit report, you can’t really get a free copy of a business credit report.  However, you can get a sneak peak in some cases with these options. 

Nav

So, Nav is a service that will let you see a credit report sample from all three of the major credit reporting agencies.  But these are only summaries, not full reports.  Generally, that means you can see your score, and maybe the accounts you have listed.  While this will help you get your bearings, it will not suffice for the purpose of correcting mistakes or even to show you what you need to do to improve your score. You do have the option to pay for more information though.

Keep your business protected with our professional business credit monitoring

Credit.net

Similarly, Credit.net will let you see a credit report sample with their free trial.  There is no credit card required.  Also, after you pull the report, you have 30 days to check it out. As a result, at least once you can get a totally free look at your report.  Since there is no fear of missing a cancelation deadline and having to pay anyway, it’s a great option. 

Scorely 

Scorely offers you a credit report sample before you pay for an ongoing subscription.  In contrast to Nav or Credit.net, they actually calculate their own score similar to the big 3:  Experian, Equifax, and Dun & Bradstreet. They strive to be totally transparent and to make their reports easy to understand. 

CreditSafe

You do have to pay for an ongoing subscription to CreditSafe.  However, they will give you a credit report sample to get you started.  Also, they have a number of reports that are unique to them.  This means you are getting something that you may not get with the other monitoring services or even the standard reports from Dun & Bradstreet, Experian, or Equifax. 

How To Read Your Credit Report Sample

In truth, each reporting agency offers different types of reports and information. Similarly, they all contain the same general data.  You need to understand what your credit report sample says, whichever agency it is from, about your business.

Dun & Bradstreet

Dun & Bradstreet offers several different types of business credit reports.  In fact, there are six different reporting options in all.  They all offer different information related to credit worthiness, and it takes all of them to get the whole picture.  The price range listed above is dependent on which reports you want to order. 

The report most use is the PAYDEX.   This is likely because it is the easiest to understand, due to it being the most like the consumer FICO score.  It measures how quickly a customer makes payments and ranges from 1 to 100.  Scores of 70 or higher are acceptable.   For example, a score of 100 shows payments are made in advance, and a score of 1 indicates that they are 120 days late, or more. 

The other Dun & Bradstreet Credit Reports include:

  • Dun and Bradstreet Delinquency Predictor Score

The delinquency predictor score measures how likely it is that the company will not pay, will be late paying, or will fall into bankruptcy.  The scale is 1 to 5, and a 2 is good.

  • Financial Stress Score

The financial stress score measures pressure on the balance sheet.  It shows how likely the company is to shut down within a year.  These scores range from 5 to 1, with a score of 2 being a good thing. 

  • Supplier Evaluation Risk Rating

This rating ranks the odds of a company surviving 12 months.  The minimum score is a 9 and the maximum is 1.  A “good” score is 5. 

  • Credit Limit Recommendation

The credit limit recommendation reflects a business’s borrowing capacity.  It is a recommendation for how much debt a company can handle. Typically, creditors use this to determine how much credit to extend. 

  • D&B Credit Rating

This one ranks overall business risk on a scale of one to four.  A score of 2 is good.  The rating is given in conjunction with letters, the combination of which indicates a company’s net worth. 

Even if there isn’t enough information on a business to assign a regular rating, Dun and Bradstreet will assign what they call a Credit Appraisal Score.  This is based on the number of employees. Another option is an alternative rating based on what data is actually available.

Keep your business protected with our professional business credit monitoring

Experian

Experian’s uses what it calls Intelliscore as its credit ranking.  There are more than 800 different factors that they use to predict a company’s credit risk. With Intelliscore, a score of 76 or higher indicates a low risk of default or late payment. If a score falls between 51 to 75, it indicates a low to medium risk.  Scores from 26 to 50 are medium risk, and from 25 down to 1 is medium high to high risk. 

Here is where Experian gets tricky. Intelliscore is a blended score of both the business and business owner’s personal information.  That means it offers insights into a business’s public record findings, collections, and payment trends, as well as overall business background. Experian is also unique in that it does not ask businesses to self-report.  Instead, they collect all the information themselves. You will have to give permission for a lender to view this report, due to it containing personal information.

Equifax

Equifax collects information similar to Dun and Bradstreet, including: information from public records, financial data from the business, and payment history from creditors.  Credit utilization is also a factor, which accounts for how much credit you are using versus the amount of credit you have available to use.

The information is used to calculate various scores, including the business credit risk score and the business failure score. The first measures how likely it is that a business will become 90 days or more delinquent on bills over the next year.  The score ranges from 101 to 992.  The second ranges from 1,000 to 1610 and predicts how likely it is that the business will file for bankruptcy over the next 12-month period.  A lower score indicates higher risk. 

They also calculate what they call the business payment index.  This is the Equifax version of Dun & Bradstreet’s PAYDEX.  It even runs on the same scale of 0 to 100.  This is an indicator of payment history over the past year. It is different from the PAYDEX, however, in that you must reach a score of 90 or higher for it to be a good score.  

In addition, Equifax offers business identity reports to confirm a company actually exists. It verifies details such as the company’s tax ID, number of employees, and yearly sales. 

Equifax does not allow business owners to request reports on their own company.  They decide themselves when to start a credit file on a specific company.

Keep your business protected with our professional business credit monitoring.

A Note on CreditSafe

If you want to subscribe with them after you see your credit report sample, they offer 3 packages, Standard, Plus, and Premier.  The problem is, they do not list their prices on their website.  You have to request a quote to determine what your pricing would be.  They allow you to purchase individual products as well. 

CreditSafe is quickly growing in popularity. No doubt that is partly due to the subscription service it offers, which allows easy insight into your own company’s credit report. The free trial allows for test driving, which sweetens the deal even more. 

Their main score, the CreditSafe rating, works on a scale of 1-100.  It predicts the likelihood that payment performance will become 90 plus days beyond terms within the next 12 months or that the business will go bankrupt.  They offer a variety of other scores and reports that provide a ton of information however.

They collect data from over 8,000 sources including: 

  • FTSE Stock
  • Telephone research
  • Local Agents
  • Companies House
  • Gazettes
  • Branches
  • News
  • Trade Payment Data
  • Banks
  • Courts
  • Registry Offices

Of course, this is far less than 8,000, but it gives an idea of the sources they use to gather their information.

CreditSafe Business Credit Reports

  • International Score

This score is derived from the Creditsafe rating. It allows for a comparison of credit risk between companies that are registered in different countries.

  • Credit Limit

The Creditsafe recommended credit limit uses information from the business payment records and those of similar companies to calculate a dollar amount recommendation of the maximum amount of credit a company should receive at any one time.

  • Days Beyond Terms (DBT)

Compares how many days late a business pays its bills in comparison to other companies in the industry.

  • Derogatory Legal

This is a report on the number and value of tax liens and judgements that have been filed in the past 6 years and 9 months.  It also includes bankruptcies filed in the last 9 years and 9 months

  • Payment Trend

A report designed to highlight at a glance substantial changes in how a company is paying its bills. 

  • Business Spend Trend

Lets you know whether the total annual business spending is going up or down when compared to the previous year. 

Subscription packages come in levels, and the prices depend on your business’s individual needs.  You will have to speak to a consultant to get a quote. 

How To Use the Information on Your Credit Report Sample

Honestly, it’s a great idea to get a credit report sample.  But, what do you do with the information that is on it? Here’s what.  You use it to figure out where you need to start with building stronger fundability.  Truly, your business credit score isn’t the only thing that affects fundability.  In fact, there are many other factors that come into play as well. However, if you have a problem with any of these other factors, it will often be detectable on your credit report sample.  Once you see it, you will know what you need to work on, including business credit. 

What Affects Fundability? 

What are some of these other factors you can use your credit report sample to check? Here are just a few.

Other Business Data Agencies 

In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly.  Two examples of this are LexisNexis and The Small Business Finance Exchange. These two agencies gather data from a variety of sources, including public records.  This means they could even have access to information relating to automobile accidents and liens. While you may not be able to access or change the data the agencies have on your business, you can ensure that any new information they receive is positive.  Enough positive information can help counteract any negative information from the past. If you see something on your credit report you did not expect, it may have come from one or both of these agencies.

Business Information

On the surface, it seems obvious that all of your business information should be the same everywhere it may show up.  However, when you start changing things up like adding a business phone number and address or incorporating, you may find that some things slip through the cracks. If you see accounts missing from your credit report sample, or accounts on it that should not be, you may have a problem with this.

The Application Process

Consider the timing of the application.  Does your credit report make it seem as if your business is currently fundable?  If not, get to work.  

Use Your Credit Report Sample to Build Fundability

Biz Credit Reporting Review Credit SuiteOf course, there are a lot of factors that affect fundability that you may not be able to use your credit report sample to check on.  Still, getting a peek at what is on your business credit report is a fabulous start.

With the information you see, you can start making some decisions about how to create stronger business fundability.  If you see an issue with any of these factors you need to work on it. Seeing a credit report sample is the first step toward detection and correction. Also, I would encourage you, don’t stop with a credit report sample.  You need to see more. Regular monitoring of your business credit is vital.

The post How to Get a Free Credit Report Sample appeared first on Credit Suite.

Bad Credit Small Business Credit Cards in a Recession – This is Proven!

As the novel coronavirus changes our economy, there’s one thing you can count on – bad credit small business credit cards in a recession. Yes, they really exist – even in what is looking a lot like an inevitable recession.

Do You Have Bad Credit? Small Business Credit Cards Can Still Be in Your Reach, Even in a Recession

Bad Credit? Small business credit cards in a recession can still be yours, if you know where to look. Fortunately, we have done the research for you.

According to the SBA, company credit card limits are several times that of personal cards! This means you can get a lot more money with corporate credit. And it also means you can have personal charge cards at stores, and now have a second card at the same stores for your small business. And you will not have to put up collateral, cash flow, or financial information in order to get corporate credit.

Even with bad credit, you can still qualify for several of these cards.

Get a Bad Credit Small Business Credit Cards in a Recession with 0% Introductory APR – Pay Zero!

Blue Business® Plus Credit Card from American Express

Take a look at the Blue Business® Plus Credit Card from American Express. It has no annual fee. There is a 0% introductory APR for the initial year. After that, the APR is a variable 14.74 – 20.74%.

Get double Membership Rewards® points on day to day business purchases like office supplies or client dinners for the initial $50,000 spent annually. Get 1 point per dollar afterwards.

You will need great to outstanding credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/bluebusinessplus-credit-card/

American Express® Blue Business Cash Card

Also have a look at the American Express® Blue Business Cash Card. Keep in mind: the American Express® Blue Business Cash Card is identical to the Blue Business® Plus Credit Card from American Express. Yet its rewards are in cash rather than points.

Get 2% cash back on all qualified purchases on up to $50,000 per calendar year. After that get 1%.

It has no annual fee. There is a 0% introductory APR for the first year. After that, the APR is a variable 14.74 – 20.74%.

You will need great to outstanding credit to qualify.

Find it here: https://creditcard.americanexpress.com/d/business-bluecash-credit-card/

Get a Remarkable Bad Credit Small Business Credit Cards in a Recession with No Annual Fee

No Yearly Fee/Flat Rate Cash Back

Ink Business Unlimited℠ Credit Card

Take a look at the Ink Business Unlimited℠ Credit Card. Beyond no yearly fee, get an introductory 0% APR for the first 12 months. After that, the APR is a variable 14.74 – 20.74%.

You can get unlimited 1.5% Cash Back rewards on every purchase made for your business. And get $500 bonus cash back after spending $3,000 in the first 3 months from account opening. You can redeem your rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®. You will need excellent credit scores to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/unlimited 

Bad Credit Small Business Credit Cards in a Recession, Not Needing a Personal Guarantee

Brex Card for Startups

Check out the Brex Card for Startups. It has no annual fee.

You will not need to supply your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.

Nonetheless, they do not accept every industry.

Likewise, there are some industries they will not work with, as well as others where they want more paperwork. For a list, go here: https://brex.com/legal/prohibited_activities/.

To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.

You can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.

You can have bad credit (even a 300 FICO) to qualify.

Find it here: https://brex.com/lp/startups-higher-limits/

Bad Credit Small Business Credit Cards in a Recession Credit Suite

Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Bad Credit Small Business Credit Cards in a Recessions for Luxurious Travel Points

Flat-rate Travel Rewards

Capital One® Spark® Miles for Business

Take a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which after that rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. Late fees go up to $39.

This card is great for travel if your expenditures don’t come under typical bonus categories. You can get unlimited double miles on all purchases, without limits. Earn 5x miles on rental cars and hotels if you book through Capital One Travel.

Get an introductory bonus of 50,000 miles. That’s the same as $500 in travel. But you only get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to superb FICO rating to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-miles/

Bonus Travel Categories with a Sign-Up Offer

Ink Business Preferred℠ Credit Card

For a terrific sign-up offer and bonus categories, take a look at the Ink Business Preferred℠ Credit Card.

Pay a yearly fee of $95. Regular APR is 17.49 – 22.49%, variable. There is no introductory APR offer.

Get 100,000 bonus points after spending $15,000 in the first 3 months after account opening. This works out to $1,250 toward travel rewards if you redeem with Chase Ultimate Rewards.

Get 3 points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.

You can get 25% more in travel redemption when you redeem for travel with Chase Ultimate Rewards. You will need a good to exceptional FICO score to qualify.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/business-preferred

No Yearly Fee

Bank of America® Business Advantage Travel Rewards World MasterCard® credit card

For no annual fee while still getting travel rewards, have a look at this card from Bank of America. It has no annual fee and a 0% introductory APR for purchases during the initial nine billing cycles. Afterwards, its regular APR is 13.74 – 23.74% variable.

You can get 30,000 bonus points when you make at least $3,000 in net purchases. So this is within 90 days of your account opening. You can redeem these points for a $300 statement credit towards travel purchases.

Earn unlimited 1.5 points for each $1 you spend on all purchases, everywhere, every time. And this is despite how much you spend.

Also earn 3 points per every dollar spent when you book your travel (car, hotel, airline) through the Bank of America® Travel Center. There is no limit to the number of points you can earn and points don’t expire.

You will need excellent credit to get this one (as in, 700s or better).

Find it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

Hotel Credit Card

Marriott Bonvoy Business™ American Express® Card

Check out the Marriott Bonvoy Business™ Card from American Express. It has an annual fee of $125. There is no introductory APR offer. The regular APR is a variable 17.24 – 26.24%. You will need great to outstanding credit to get this card.

Points

You can get 75,000 Marriott Bonvoy points after using your card to make purchases of $3,000 in the first three months. Get 6x the points for qualified purchases at participating Marriott Bonvoy hotels. You can get 4x the points at United States restaurants and gasoline stations. And you can get 4x the points on wireless telephone services bought directly from American providers and on American purchases for shipping.

Get double points on all other eligible purchases.

Rewards

Also, you get a free night every year after your card anniversary. And you can get another free night after you spend $60,000 on your card in a calendar year.

You get Marriott Bonvoy Silver Elite status with your Card. Also, spend $35,000 on eligible purchases in a calendar year and earn an upgrade to Marriott Bonvoy Gold Elite status through the end of the following calendar year.

Plus, each calendar year you can get credit for 15 nights towards the next level of Marriott Bonvoy Elite status.

Find it here: https://creditcard.americanexpress.com/d/bonvoy-business/

Secure Corporate Credit Cards for Fair Credit? Get Bad Credit Small Business Credit Cards in a Recession

Capital One® Spark® Classic for Business

Take a look at the Capital One® Spark® Classic for Business. It has no annual fee. There is no introductory APR offer. The regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, without any minimum to redeem.

While this card is within reach if you have fair credit scores, beware of the APR. However if you can pay on time, and in full, then it’s a bargain.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

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Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Get Bad Credit Small Business Credit Cards in a Recession for Jackpot Rewards That Never Expire

Capital One® Spark® Cash Select for Business

Have a look at the Capital One® Spark® Cash Select for Business. It has no annual fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can get. Also get a one-time $200 cash bonus when you spend $3,000 on purchases in the first 3 months. Rewards never expire.

Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.

You will need good to exceptional credit scores to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash-select/

Get a Terrific Bad Credit Small Business Credit Cards in a Recession for Cash Back

Flat-Rate Rewards

Capital One ® Spark® Cash for Business

Check out the Capital One® Spark® Cash for Business. It has an introductory $0 yearly fee for the first year. Afterwards, this card costs $95 each year. There is no introductory APR deal. The regular APR is a variable 18.49%.

You can get a $500 one-time cash bonus after spending $4,000 in the initial three months from account opening. Get unlimited 2% cash back. Redeem any time without minimums.

You will need great to outstanding credit to qualify.

Find it here: https://www.capitalone.com/small-business/credit-cards/spark-cash/

Flat-Rate Rewards and No Annual Fee

Discover it® Business Card

Check out the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for twelve months. Then the regular APR is a variable 14.49 – 22.49%.

Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. There is no minimum spend requirement.

You can download transactions| conveniently to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to superb credit scores to get this card.

https://www.discover.com/credit-cards/business/

Bonus Categories

Ink Business Cash℠ Credit Card

Take a look at the Ink Business Cash℠ Credit Card. It has no yearly fee. There is a 0% introductory APR for the first twelve months. After that, the APR is a variable 14.74 – 20.74%. You can get a $500 one-time cash bonus after spending $3,000 in the first 3 months from account opening.

You can get 5% cash back on the initial $25,000 spent in combined purchases at office supply stores and on net, cable, and phone services each account anniversary year.

Get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Get 1% cash back on all other purchases. There is no limit to the amount you can earn.

You will need outstanding credit scores to qualify for this card.

Find it here: https://creditcards.chase.com/business-credit-cards/ink/cash?iCELL=61GF

Boosted Cash Back Categories

Bank of America® Business Advantage Cash Rewards MasterCard® credit card

Take a look at the Bank of America® Business Advantage Cash Rewards MasterCard® credit card. Get an 0% introductory APR for the initial 9 billing cycles of the account. After that, the APR is 13.74% – 23.74% variable. There is no yearly fee. You can get a $300 statement credit offer.

Get 3% cash back in the category of your choice. So these are filling stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. Get 2% cash back on dining. So this is for the first $50,000 in combined choice category/dining purchases each calendar year. Then earn 1% after, with no limits.

You will need exceptional credit scores to qualify.

Find it here: https://promo.bankofamerica.com/smallbusinesscards2/

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Check out how our reliable process will help your business get the best business credit cards, even during a recession.

Flexible Financing Bad Credit Small Business Credit Cards in a Recession

The Plum Card® from American Express

Have a look at the Plum Card® from American Express. It has an initial yearly fee of $0 for the first year. After that, pay $250 per year.

Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.

You will need excellent to excellent credit scores to qualify.

Find it here: https://creditcard.americanexpress.com/d/the-plum-card-business-charge-card/

The Perfect Bad Credit Small Business Credit Cards in a Recession for You

Your absolute best bad credit small business credit cards in a recession will hinge on your credit history and scores.

Only you can select which features you want and need. So make sure to do your homework. What is excellent for you could be catastrophic for others.

And, as always, make sure to develop credit in the recommended order for the best, speediest benefits. The COVID-19 situation will not last forever.

The post Bad Credit Small Business Credit Cards in a Recession – This is Proven! appeared first on Credit Suite.

Ubersuggest 5.0: Generate 1 Million Keyword Suggestions in 7 Seconds (Seriously)

Ubersuggest started out as a tool that provided suggestions through Google Suggest.

And although that’s great, everyone these days is using
Google Suggest to come up with keyword ideas.

There have to be more keyword ideas out there that get more search volume and aren’t competitive, right?

Well, there are, and now with the new Ubersuggest, you’ll get access to them.

Here are the 2 big changes I am making with this release…

Introducing a new keyword database

Because we have results in our database for more than a billion different keywords, I thought it would be fun to tap into it and provide you with even more keyword suggestions.

Now when you perform a search on Ubersuggest for any keyword, you’ll see a “related” tab with even more suggestions.

And each tab shows you how many keywords are in that group.

As you can see for the term “digital marketing”, just in the United States there are over 30,000 keyword recommendations.

And for terms like “dog”, there are over 1 million keyword recommendations.

dog

Don’t worry though, results from Google Suggest are still there under the “suggestions” tab but you can now see even more search terms if you click on “related”.

What’s cool is that you can even export all of the keywords via CSV.

And if you want to leverage the filters to fine-tune the results, you can easily do so.

filters

For example, I used the filters setting to find keywords with a minimum search volume of 400 searches a month and a maximum SEO difficulty of 50. Ubersuggest then fine-tuned the results to 489 keywords related to “digital marketing” that I should consider target instead of me having to manually go through 30,000 plus recommendations.

And with the CSV report, it adjusts as the settings with the filters change. So you can export the keywords that you want and ignore the keywords you aren’t planning to target.

Ubersuggest now has local search

Another big change that we made to Ubersuggest is that we
introduced local keyword research.

You can now pull up keyword stats and ideas on any city, county, region, or country.

For example, if I want to know the search volume and keyword
recommendations for West Hollywood, California, I can now do so.

From there, Ubersuggest shows keyword search volume, keyword recommendations, and even content ideas for a blog post.

On top of that, when you head over to the “keyword ideas” report, you’ll also notice that the SERPs results, which shows all of the sites that rank for that term, are now adjusted to also show the ranking sites within that region.

So, what’s next for Ubersuggest?

Well, speaking of keyword research, you’ll start seeing keyword recommendations based on questions, comparisons, and prepositions like Answers the Public within a month.

And, of course, as I promised earlier, next Tuesday I am releasing the rank tracking and dashboard features on Ubersuggest.

If you haven’t already, head on over to Ubersuggest to give the new keyword database a try.

And if you are trying to use the local SEO features, you may find that they only work once you are in the app.

I haven’t been able to make the changes to the main
Ubersuggest landing page yet, but once you type in a keyword and test it out,
you can then switch your location to any city.

So, what do you think of the changes?

PS: Make sure you test Ubersuggest out.

The post Ubersuggest 5.0: Generate 1 Million Keyword Suggestions in 7 Seconds (Seriously) appeared first on Neil Patel.

The Success Of My Clients/Students

I love helping my clients/students make money online. In the beginning of today’s video, you will hear from one of my most recent YWTA students and their success with this business so far!

Enjoy and let me know what you think in the comments below.. If you do want to get into YWTA at the discounted price of $1997.

Send me an email to:

[email protected]

and I will do my best to hook you up.

To Your Success;
Michael Bashi

The post The Success Of My Clients/Students appeared first on Buy It At A Bargain – Deals And Reviews.

All the World’s a Stage: Meet Dun and Bradstreet and the Business Credit Characters

Everything you Need to Know about Dun and Bradstreet and the Other Characters in the Show

All the world’s a stage they say, and when it comes to your business, business credit is the star of the show.  It can make you laugh, cry, or carry you on wings that soar.  It can truly be the foundation on which your business is built, or it can be the very thing that tears it down.  Dun and Bradstreet has carried the title of lead player in a credit reporting agency role for years, but the supporting roles played by both Experian and Equifax bear mentioning as well.

Before we jump into the life and purpose of each, it can help to understand a little more about business credit. Why business credit?  What makes it so special?  Who needs it?  Why does it play such a vital role in the show?

Why Business Credit?

There are a number of reasons why it is essential to actively attempt to build credit.

Shield Your Personal Credit Report

It is important to organization success that you develop business credit. Without a business credit score, your capability to fund your business rests entirely on the qualities of your individual credit score. That’s not a big deal if you have great personal credit.

However, business financing can impact your personal credit scores as well.  If you finance your business on the merits of your personal credit, you will likely find your balances hover near your limits.  On personal cards the limits are not as high as most business cards allow.

This has a negative effect on your credit report even if you are making your payments on time. If your business has its very own credit report, it’s not a problem. Limitations are higher, so you have a lot more credit to deal with. Regardless, it doesn’t impact your personal credit score.

When you have solid business credit, you have accessibility to funds to do the things you need to do throughout the normal course of company business. Not only that, but you can do what you need to do without worrying about depleting cash reserves.

In short, business credit opens the door to higher limits, lower interest rates, and it protects your personal finances from being affected by your business transactions.

 

Hit the jackpot with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Business Credit vs. Personal Credit: A Character Study

While their character purposes are similar, they are not the same.  They play roles that are the same, but in very different circumstances.  Think of the difference in a parent and a boss.  Both can tell you what to do.  Both can teach you, guide you, and help you thrive where you are.  They are not the same however.  A parent leads and guides in your personal life, while a boss does so at work.  A boss can fire you from your job, but your parents cannot.  Your parents can kick you out of your house, but you boss cannot.

Personal credit and business credit kind of work the same way.  Your personal score doesn’t have to affect your business, and your business credit doesn’t affect your personal finances, if you set things up properly. There are other differences as well.

Key Differences Between Personal Credit Reports and Business Credit Reports:

  • Personal FICO scores range from 300 to 850
  • Business credit scores usually range from 0 to 100.
  • FICO algorithms are commonly used by consumer credit bureaus to generate a credit score.
  • Business credit scores do not follow industry standard algorithms, meaning they can vary greatly between credit reporting agencies.
  • Business credit usually include only accounts that are in your company’s name. Your personal accounts are on your personal credit report.
  • You can get a free copy of your personal credit report from the three major consumer credit reporting agencies each year. This includes Experian, Equifax, and TransUnion.  There are also several free options for getting a glimpse at your credit scores at any given time.
  • Business credit is quite different when it comes to accessibility. You have to pay to see your company’s credit report and to find out the score at all three major business credit reporting agencies, including Dun and Bradstreet, Experian, and Equifax.
  • Not just anyone can see your personal credit report, but business credit reports are public. Anyone that wants to pay can see your business credit.

Dun and Bradstreet: The Star of the Show

So, who is the star of the business credit report show?  It’s a unanimous vote for Dun and Bradstreet.  They are the oldest and most commonly used business credit reporting agency. They offer way more than just a single business credit score. There are multiple reporting options that lenders can choose from to assess the credit worthiness of a specific business. Following is a breakdown of what they offer, with an explanation of what it all means and why they are a credit reporting super star.

Credit Reporting at Dun and Bradstreet: What Does Dun and Bradstreet Do?

The quick answer is they provide lenders with business credit reports to help them make lending decisions.

There are six different Dun and Bradstreet reporting options, all measuring different areas of credit worthiness.   The most commonly used and simplest to understand Dun and Bradstreet credit report is the PAYDEX.   Generally speaking, this is the Dun and Bradstreet credit score most like the consumer FICO score.  It measures the speed of payment and ranges from 1 to 100.  A 70 or higher is “good.” For example, a score of 100 means that the company makes payments in advance, and a score of 1 indicates that they pay 120 days late, or more.

Without Further Ado: The Many Faces of the Dun and Bradstreet Credit Report

In addition to the PAYDEX, there are many other options for a business credit report.  Dun and Bradstreet offers several different types.

dun and bradstreet credit signal

Dun and Bradstreet Delinquency Predictor Score

The delinquency predictor score measures the likelihood the company will not pay, will be late paying, or will fall into bankruptcy.  The scale is 1 to 5, and a 2 is considered good.

Financial Stress Score

The financial stress score is a measurement of the pressure on a company’s balance sheet.  It indicates the likelihood of a shutdown within a year.  It measures with a minimum of 5 and a maximum of 1, with a score of 2 being a good thing.

Supplier Evaluation Risk Rating

This is a rating that ranks the odds of a company surviving 12 months.  The minimum score is a 9 and the maximum is 1.  A score of 5 is good.

Credit Limit Recommendation

The credit limit recommendation shows a business’s borrowing capacity.  It is a dollar amount recommendation for how much debt a company can handle. Typically it is used by creditors to determine how much credit to extend.

D&B Credit Rating

This is an estimation of overall business risk on a scale of 4 to 1.  A two is considered good.  The rating is given in conjunction with letters, the combination of which indicate a company’s net worth.

 

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Even if there isn’t enough information on a business to assign a regular rating, Dun and Bradstreet will assign what they call a Credit Appraisal Score.  This is based on number of employees. Another option is an alternative rating based on what data is actually available.

It is also important to note that the letter portion of this rating cannot be assigned as good or bad, as net worth is not necessarily an indicator of how stable a business is.

What Goes into a Dun and Bradstreet Credit Rating?

The various scores and ratings are based on data that they receive from a number of places. The first source is the business itself, but they also tap into public records.  A business must submit a financial statement to D&B before they can have a full rating.  In the absence of that, a limited rating will be issued based on number of employees.  For example, the rating would be 1R if the business has 10 employees or more, and 2R if they have less than 2 employees.

A composite credit appraisal may also be available in the absence of a financial statement.  A business is only eligible for a rating up to a 2 in this case however. They are ineligible for a 1 rating without a financial statement.

In addition to self-reporting financial statements, you can self-report trade references to D&B, which makes it easier to build business credit faster.  You will need a DUNS number to have a credit report with them at all, but that is free and easy to get on their website.

Dun and Bradstreet and the Commercial Credit Score

The commercial credit score is the term used to describe the actual business credit score.  It has three separate parts, and each predicts how likely the business is to default on bills or become delinquent.  Following are the three parts and the scales by which they are ranked.

Commercial credit score

Measured on a scale of 101 to 670, it predicts the probability of a company becoming delinquent.  A score of 101 is most probable, so that’s bad.  A score of around 500 is good.

Commercial credit percentile

This is measured on a scale of 0 to 100.  It measures the probability of delinquency as well, but against other companies in the Dun and Bradstreet system.  A score of 1 is the highest probability compared to other businesses in the system, and most say a score of 80 is good.

Commercial credit class

This is a method of dividing businesses into classes based on the probability of delinquency.  Companies in class 1 are the least likely to be delinquent.  If you are in class 2, that’s good.

Who Are the Other Characters?

In this great show of business credit reporting agencies, it can be easy to forget there are other players when Dun & Bradstreet seems to shine so bright.  There are, however, other agencies that offer business credit reports.

Equifax

They collect their information in ways not unlike Dun and Bradstreet, including: information from public records, financial data from the business, and payment history from creditors.  In addition, they factor information about credit utilization, or how much credit a business is currently using versus how much they have available, into their calculation.

They then use the information collected to generate various scores.  These scores include the business credit risk score and the business failure score. The business credit risk score measures how likely it is that a business will become 90 days or more delinquent on bills over the next 12 months.  It ranges from 101 to 992.  The business failure score ranges from 1,000 to 1610, and it predicts how likely it is that the business will file for bankruptcy over the next year.  The lower the score, the higher the risk.

Another score they offer is the business payment index.  This is their version of the D&B PAYDEX, and it even runs on the same scale, 0 to 100.  It indicates payment history over the past year.  Different from the PAYDEX however, you have to reach a score of 90 or higher for it to be a “good” score.

Equifax also offers business identity reports that serve as confirmation that a company actually exists. It also verifies details such as the company’s tax ID, number of employees, and yearly sales.

Equifax does not allow business owners to request a report on their company.  They decide themselves when to start a credit file on a specific company.

Experian

Experian’s credit ranking, Intelliscore, uses more than 800 variables to predict a company’s risk of defaulting or becoming delinquent. A 76 or higher is considered good with Intelliscore.  That indicates a low risk of late payments or default.  A score from 51 to 75 indicates a low to medium risk and 26 to 50 indicates medium risk.  From 25 down 1 is medium high to high risk.

 

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Intelliscore is considered a blended score of both the business and business owner’s information.  It offers insights into a business’s public record findings, collections, payment trends, and overall business background. A major difference between Experian and the other two characters is that they do not ask businesses to self-report at all.  Rather, they collect all the information themselves. Since it includes personal information, you do have to give permission for a lender to view this report.

Specifically, the Experian credit ranking gives insights into a company’s payment trends, public record filings, collections, and general business background. The result is a blended score calculated using both the business and business owner’s information.

The Experian Database and Credit Report Generation

Experian’s database has information on over 27 million businesses.  Reports are generated with information from the database, which houses information on bankruptcy filings, payment history, collections, banking, insurance, and leases.

There has to be a minimum amount of information in the database about a business before Experian will generate a score for it. There must be at least one tradeline in the system, so you should definitely do business with a company that will report to Experian if you want to build business credit.

Applause or Rotten Vegetables: Which Credit Reporting Agency Really Matters?

All the players are important for this reason.  You do not know, and cannot choose, which one your lender will use to base their decision upon.  This means it is important to build strong business credit with each one.  While a lot of this is out of your control, you can choose which starter vendors you work with.  Since not all starter vendors report to all credit reporting agencies, you need to make sure you do business with a variety that report to each one.  Then you can be on your way to building strong business credit.

 

 

 

 

 

The post All the World’s a Stage: Meet Dun and Bradstreet and the Business Credit Characters appeared first on Credit Suite.

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