3 Big Differences between Personal Credit Scores and Business Credit Scores

There are many differences between personal and business credit scores.

One fundamental difference between consumer and business scores is the time frame the scores gauge someone’s risk of default over.

A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months.

A consumer credit score is a mathematical model that is used to depict a consumer’s risk of going 90 days late on an account within the next 24 months.

Another big difference between consumer and business credit scores is what the score actually represents.

A consumer credit score reflects an individual’s likelihood of defaulting on an obligation.

A business credit score reflects the business’s likelihood of defaulting on an obligation, not the business owner’s.

The business credit score is based on how the business obligations are being paid, not how the business owners pays their personal obligations.

Another major difference between business and consumer credit scores is the score range.

Consumer FICO scores range from 350-850 with 850 being the best score you can obtain. Business credit scores typically range from 0-100 with 100 being the best score you can obtain.

There are three of many major differences between consumer and business credit scoring.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit  wiseventuregroup.com

Business Credit Benefits

Imagine having the ability to access $50,000, $100,000, even $250,000 for your business.

Now imagine doing this with NO personal credit check and NO personal guarantee. Your success in business will be determined based on your business credit profile and score. With a good business credit profile you will have near unlimited borrowing power.


Without having a good business credit profile it will be a difficult path to success without having access to working capital and funding.


This is why almost all Fortune 500 companies use their business credit to secure funding.

 It’s not that they need the money to operate. Successful companies use funding as leverage to grow their business.

Business Credit is the best kept secret in business. Over 90% of all business owners know nothing about business credit or business credit scores.

But when you do discover the power of what business credit can do for you and your business you will be floored at how easy it is to get money and grow your business. One of the many benefits of business credit is that you can obtain funding with no personal credit check.

With a strong business credit profile lenders will lend you money based on your business credit, not your personal credit.

This is excellent if you have personal credit issues as you can still qualify for funding. Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power.

You can get approved for much higher funding amounts using your business credit than you would if you used your personal credit to qualify.

Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain.

This means you can be approved with no personal liability. So if you ever do default, the creditor can’t pursue your personal assets like your home or personal bank accounts.

Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile built.

Most important by having a good business credit profile built you have security. It is much easier to run your business when working capital is easy to come by.

About the Author

Ken Simmons is currently the CEO of   wiseventuregroup.com

 At wiseventuregroup.com  he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit wiseventuregroup.com

The 5 Cs of Business Credit

The 5 Cs of business credit are: 

1. Character

2. Capital

3. Capacity

4. Collateral

5. Conditions

Character is all about you. It’s about your personal history, your stability, and how reliable you are. This variable is more subjective than the others, and is one of several reasons it is beneficial to do business with a bank where you have built relationships with the people who work there. In determining your character, the lender may look at your education, your work history, your personal income, and personal credit history. Again, it’s important to remember that this is one area of business credit where relationships do matter!

Capital is about how much you have invested in your business. Whether you are seeking a bank loan or a loan from a private investor, the lender will want to see that you are heavily invested in your own business. Generally speaking, the more of your personal money that you’ve invested in your business, the better it will look to a potential lender. (After all, if you’re not confident enough to invest in your business, why should they be?)

Capacity is about your ability to repay a loan according to the terms. Things like cash flow, payment history, and the assets and resources of any person providing a personal guarantee will play a part in determining your capacity to pay back a loan. Collateral is something offered up as security for a loan. Anything from equipment to inventory to a home you own can be considered collateral. It may be easier to get approved for loans with collateral, and many loans will require it. In some cases, the more that you can offer as collateral, the more likely you will be to get approved.

“Conditions” may mean any number of things, some of which could be out of your control. The current economy, for instance, may play a role in your ability to get approved for a loan. Other things that they may look at include your industry and its economical status, and the purpose of the loan.

If your industry is suffering and businesses in your industry are struggling, it could negatively affect your ability to get approved. Some loan purposes are more readily approved than others, too. Loans for riskier purposes such as new and unproven expansions are generally less likely to be approved.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today

For more information on business credit scoring, business credit, visit   wiseventuregroup.com

Denied Business Credit?

According to recent reports, as many as one third of applications for business loans are denied. If you find yourself as part of that group, there are some things you can do to help the situation.

The first thing you need to do is try to determine where the problem is. Possible areas of concern may include:

• Your business profits. Does your business have a healthy profit margin? Improving your profits by reducing and trimming down the operational excess and unnecessary business spending can help improve profits and boost your chances of getting approved.
• Your business assets and liabilities. If your balance sheet is out of whack, most lenders will run the other way. If your business is already heavy on debt, then this will be an area of concern that you’ll want to address.
• Your payment histories and business credit profile. Obviously, how you are paying your existing obligations will play a role in your approval or denial for credit. If you’ve been denied business credit recently, check your Paydex and other payment performance data and make adjustments as necessary.
•  Most payment experience data is only reported for 2 to 3 years (depending on the credit bureau), so if you’ve made a mistake or hit a bump or two in the road, don’t let it worry you. Just keep the positive payment history building, and make sure what is being reported to date is accurate.
• Your bank ratings. If your business bank account balances are habitually low, this can actually rule you out for certain types of business credit. Try to maintain $10,000 or more in your business bank accounts to avoid trouble.

The bottom line, if you’ve been denied credit, is that there is something about your business that makes it appear to be a bad risk.

 Your job is to analyze and understand your business credit report and business finances, determine where the problem is, and take the necessary steps to correct your course.

Sometimes the lack of history or data on your business will be a key factor in a credit denial.

This is something that can be easily remedied by taking careful steps to shape your business’s financial picture and credit profile.

About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons  is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit) wiseventuregroup.com

5 Factors That Affect Your Business Credit

What makes up your business credit score? What gives you the best chances of getting a loan? Here are a few factors that play into your business credit picture, and what you can do to make the most of them:

1. Payment History - Your payment history is an important part of your business credit profile, and is what your D&B Paydex score is based on. Many credit opportunities come with a minimum Paydex requirement. What you can do: always pay vendors EARLY. On time is “okay”, but paying early (as in before you receive the invoice) is best.

2. Credit Applications - Believe it or not, multiple applications for credit can be a red flag that will keep you from getting approved for a loan. Too many in a short period of time will make your company look desperate and be a sign to potential lenders that things are going downhill. What you can do: plan your use of credit accordingly, and keep applications to the minimum necessary to accomplish your goals.

3. Blanket UCC Filings - One thing that many people don’t realize is that they need to pay attention to the order in which they get certain types of loans, and what UCC filings the lenders will file. Some lenders may file a “blanket” UCC filing, which essentially says they have an interest in ALL of your assets. These blanket UCC filings will then take precedence over any subsequent ones, which drastically reduces your ability to get credit elsewhere. What you can do: plan your credit carefully, and negotiate UCC filings according to what your needs are. For example, if you need particular assets excluded from a UCC filing to use as security for another loan, explain that fact in advance to get those items excluded from any blanket filings, or, alternatively, get the loan or account with the more specific UCC filing first. Some experts recommend opening accounts with competing UCC filings at the same time, and negotiating the details with each party simultaneously.

4. Company Financials - With D&B, it’s important to make sure your financials in your credit file are up to date. If they are not, it could negatively reflect on your company when the lender is comparing the available data. What you can do: update your financials on your credit reports so that they reflect your current circumstances, and plan to do so periodically.

5. Company Legal Structure - The legal structure of your company (LLC versus INC versus Partnership, etc.) can also affect your business credit. Lenders are less likely to loan money to Sole Proprietorships and Partnerships than Corporations or Limited Liability Companies. What you can do: if you aren’t incorporated, you should be. The advantages span far past just your ability to get credit.

There are other factors that affect your ability to get credit, such as the amount of debt you already have, how heavily invested you are in your company, and even your personal credit can play a role in your approval or denial. Here we’ve covered five of them. In the end, the better the all-around picture you can paint, the better your chances of getting approved for loans will be.

About the Author

Ken Simmons  is currently the CEO of wiseventuregroup.com

At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today

For more information on business credit scoring, business credit, visit

wiseventuregroup.com

Three Business Credit Myths Debunked

A lot of people don’t understand the consumer credit system, and many more don’t understand the business credit system. Today I’m going to cover a couple of common business credit “myths”, and explain the truth that can be learned from them.


Myth #1: Business Credit is Just Like Personal Credit

This sounds like it ought to be true, but it just isn’t. Sure, the credit systems are similar. However, there are some very major differences that can seriously affect your business. For starters, the consumer credit system has, both in court and in congressional testimony, been demonstrated to be fairly anti-consumer. The system works against consumers in many cases, is prone to errors, and tends to resist the correction of any errors by consumers or their advocates. (In one example, even after a credit bureau was sued and lost in court, they continued to refuse for months to remove the incorrect information from the person’s credit reports.) The business credit system is quite different. It is not anti-business (or anti-consumer), it is less prone to errors, and when there are legitimate errors, they are generally easier to get corrected.

Myth #2: It Doesn’t Hurt To Use Personal Credit In Place of Business Credit

This is a problematic way of thinking that can lead to big problems down the road. Using personal credit for business purposes puts your personal credit at risk for the sake of your business. By using personal credit for business, you limit the resources available to you personally and to your business, and the end result could be disastrous. Imagine when your business credit needs exceed your personal credit capacity--and when YOU need to use your personal credit and can’t because it’s been tied up by your business. No matter how you spin it, in the end using your personal credit for business is a bad idea.

Myth #3: Business Credit and Personal Credit Are In No Way Related

While using your personal credit for business use is a bad idea, we can’t exactly separate business credit and personal credit completely. In many cases, especially when starting out with business credit, an owner of the company will be required to provide a “personal guarantee” for the business credit loan or line of credit. When providing a personal guarantee, the company extending credit will not only check your business credit, but will check your personal credit history. While the business account won’t show up on your personal credit report, the personal guarantee could eventually affect your personal credit in the event that the business fails to meet its obligations. Obviously, you should aim to avoid that scenario (and certainly can) by careful planning and smart use of business credit.

About the Author
Ken Simmons is currently the CEO of  wiseventuregroup.com

 At wiseventuregroup.com he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons  is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit, visit  wiseventuregroup.com

The Dun and Bradstreet Paydex Business Credit Score

The main credit score used in the business world is known as a Paydex score provided by Dun and Bradstreet.

This number assess a business’s lending risk much the same as a consumer credit score reflects a consumer’s individual credit risk.

Paydex is essentially the business equivalent of your personal credit score.

The exact definition from Dunn & Bradstreet, or D&B is: The D&B PAYDEX® Score is D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors.

There are many BIG differences from a business Paydex credit score and an individual FICO consumer credit score.

Consumer FICO credit scores range from 350-850. The Paydex Score ranges from 0-100 with 100 being the highest score you can obtain.

Individual credit scores are calculated based on a number of factors.

The Paydex score is calculated based on only one single factor; whether a business makes prompt payments to its suppliers and creditors within the agreed upon terms of payment.

Most lenders and suppliers are looking for a score of 70 and higher. Having a score of 80 and above is very good.

Here is a breakdown of how the Paydex credit score is calculated:

Payment Expectation
Expect payment may come early                                                                               100
Payments generally come within early payment discount period                              90
Payment is prompt                                                                                                      80
Payment comes 14 days beyond terms                                                                       70
Payment comes 21 days beyond terms                                                                       60
Payment comes 30 days beyond terms                                                                       50
Payment comes 60 days beyond terms                                                                       40
Payment comes 90 days beyond terms                                                                       30
Payment comes 120 days beyond terms                                                                     20
Unavailable                                                                                                                 UN

If you own a business, your Paydex score is essential in establishing new credit and continuing to build credit limits exceeding $100,000.

It only takes 60 days to establish a positive Paydex credit score. To start you will first want to apply for a DUNS Number, a nine digit business identifying number, with Dun and Bradstreet.

Once your DUNS number is established you will next want to find a merchant who will extend you credit and then report that credit to Dun and Bradstreet.

Once you have positive business credit report to Dun and Bradstreet you will have a positive Paydex score established.

You will want to then apply for more business credit and use it regularly. Make sure you pay all payments back early to raise your scores to 80 or higher.

You can easily and quickly establish a positive Paydex credit score.

As you continue to pay your bills timely your scores will continue to raise giving you the ability to qualify for credit in your business name.


 About the Author

Ken Simmons is currently the CEO of wiseventuregroup.com

At  wiseventuregroup.com  he specializes in helping business owners establish excellent business credit scores and then leverage those scores to access cash and credit for their businesses.

Ken Simmons is also the mastermind behind the release of the exclusive Business Funding Suite. The Business Credit and Funding Suite is the leading business cash and credit access system in the world today.

For more information on business credit scoring, business credit  wiseventuregroup.com
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