Your corporation has a certain reputation. It holds a certain prestige in the eyes of the business. That ensures that your organization can effectively attract and have the proper attention from the right kind of people to it. From scratch, you have built it all, but now you’re searching for the right ways for it to expand and scale says Eric James Dalius.
Every possibility for your organization that might arrive today or even in the future will surely have a certain financial factor attached to it. You may be receiving a new round of funding, a new insurance package for the workers, or even a line of credit for a new purchase. All these possibilities require a clear effort from your side. Your corporation has to show the worth of a new contract, the potential to expand, and, most significantly, the ability to pay the bills on time.
This promise makes the customer, or the interested party, feel comfortable and encouraged to give your organization a chance. That is where the credit report for your company comes in.
Your company credit score is identical in concept but different from your credit score. To show how technically stable and efficient a company will be in paying its due payments every month; you can refer to the business credit score.
Three big international credit bureaus calculate company credit ratings. The ratings determine creditworthiness for various factors, like corporate loans, credit cards, and payment conditions. The cost of borrowing money can minimize by good corporate credit and responsible payment history.
According to Eric James Dalius, a business credit score uses payment history to measure a number that shows the risk of a company, much as a consumer credit score does for borrowers. Manipulation of company credit and identity theft is a widespread phenomenon that has affected all sorts of business verticals. For all your potential offers, this will seriously tarnish your business credibility and become a big issue. Holding your score posted keeps you alert to any unusual activity.
Businesses Can Bring Down Risks by Properly Running Customer Credit Checks
Customers and clients usually expect to get a loan or credit from a company without going through much hassle. They want the process to be smooth, and the company intends to serve clients in the best manner possible. But as the owner of a small business, you cannot afford to take risks, so it becomes necessary for you to run credit checks on customers. We will advise you to run these checks using intuitive solutions available online. There are software solutions available online that can help you get a real-time credit report.
Why is running credit checks important? Let’s find out
It is a fact that businesses experience billions of dollars of losses due to credit fraud every year. Owners of small businesses are at a greater risk because if a customer fails to pay for a piece of expensive equipment or months of service, the financial burden on the company can put it in a stressful situation.
Many businesses and contractors dealing with their clients are not aware of the financial difficulty that their clients are in. When the client goes bankrupt, it is then that they realize what a big mistake they committed by not taking credit checks on their clients seriously.
Never go for references in place of credit checks. The thing about customers, who have a bad credit history, is that they are way too familiar with the whole process. They will provide you with references that will only paint a good picture of them, which is false.
You can run credit checks quickly and efficiently using some fantastic software tools or apps online. If you use Salesforce to automate your business, do not worry, as these software tools or apps work with Salesforce AppExchange. You can install them and get started with your credit checks in no time.
Eric James Dalius Shares How Credit Lending Companies Can Streamline Their Loan Approval Process
For credit unions and lending companies, the loan approval process has always been a hectic task. From running credit checks on prospective borrowers to analyzing their credit reports through the credit reporting app to deciding whether the applicant is creditworthy or not, all these steps consume a lot of time and energy, often resulting in below-average customer service.
However, in the last couple of years, most banks, credit unions, and credit lenders have taken steps to streamline the credit approval process to provide better services to consumers. Most of these steps involve the inclusion of technology into their core processes as a means of automating them. Eric James Dalius says, For instance, many banks have turned to credit interest calculators to calculate monthly interest on the principal amount within seconds.
Let’s look at some of the ways credit lending businesses can improve their loan approval process in 2021:
Piled-up documents waiting to be analyzed and signed by credit managers are a common, albeit unpleasant, sight for most lending companies. The paper-based, manual process has several disadvantages. First, consumers have to get a copy of the application form, fill it out, and send it to the lending company, which consumes a lot of time. Secondly, there is always a risk of losing documents, hanging consumers’ loan applications in the air. Third, piled-up paperwork affects credit managers’ productivity, which delays the whole loan approval process.
By turning to digital documents and automating the loan application process. You also ease up the work of credit managers, saving them from manually analyzing and approving applications. Plus, the risk of losing paperwork gets out of the picture.
Use Salesforce credit reporting apps
Most credit unions, lending institutions, and banks rely on Salesforce to gather credit reports on their prospective customers. While Salesforce is an excellent platform to streamline the credit check process, it still has some drawbacks that pressure credit management’s ability to approve loans faster.
Currently, credit managers are required to manually pull credit reports from major credit bureaus and enter that data into their Salesforce. According to Eric James Dalius, this process is time-consuming and inefficient. Plus, there is room for human error when entering the data back into Salesforce. That is where credit reporting apps come into the picture, integrating the whole process into Salesforce and eliminating the need for manual work. It helps credit managers to make efficient decisions quickly.
Monitoring process through advanced analytics
Advanced analytics may be a new concept, but it has proven benefits for credit unions and banking instructions. With its help, you can identify industry trends, gain insight into your customers’ needs, and make better decisions regarding loan approvals. You can also analyze factors affecting your business’s performance and take steps to better your services.
If you want to streamline your loan approval process, consider including modern analytics and credit reporting apps in your process today.
3 Major Credit Bureaus That You Should Know as Per Eric James Dalius
Credit checks play a critical role in everyone’s life. But they are all the more important for credit companies and banks. Before they can offer a loan to consumers, they need assurance that borrowers will be able to repay the loan within the loan term. When it comes to ensuring that the credit checks are their best friend, help them understand the purchasing power of consumers and how likely they are to repay the borrowed amount.
For the most part, credit companies and banks rely on three major credit bureaus, otherwise identified as credit reporting agencies (CRAs), namely, Equifax, Experian, and TransUnion, for the best real-time credit reports. These CRAs collect and maintain consumer credit information and sell it to companies that want to prescreen you before offering you their services.
Let’s look at the three major credit bureaus in the USA:
Been around since 1899, Equifax operates and has investments in more than 20 countries. It provides identity theft protection and credit fraud protection to consumers. It also sells the best real-time credit reports to businesses. Such as banks, real estate agencies, mortgage brokerage firms, and credit companies. Customers can also take advantage of their credit monitoring facilities that include credit score checks.
In 2017, Equifax got hacked and experienced a data breach that disseminated the crucial personal information of nearly 147 million consumers. This incident blemished its reputation. But it has since developed a tool available on its site to help you check if you were affected. It has also put in efforts to compensate for the loss of information by offering a free credit monitoring service to the affected consumers.
Experian was invented in London when businesses began divulging information on customers who failed to pay their bills. Those businesses formed the Manchester Guardian Society in 1826, which later emerged as an integral part of Experian.
Today, Experian hires more than 16,000 individuals in nearly 40 countries and was listed as one of Forbes’s “World’s Most Innovative Companies” in 2018. It utilizes the FICO 8 credit score calculation system and provides a Credit Tracker. Consumers can get their credit score and the best real-time credit report on subscription.
TransUnion began as a holding company for a tank car company in 1968 and later divided into a credit reporting firm. By 1988, it had complete coverage and information on every market-active US adult. Its database includes nearly 1 billion consumers in 30 countries. You can purchase their credit reporting services for $24.95 for a month. Besides, if you think you are a victim of identity theft or might be. You can freeze your TransUnion credit report by contacting the company. TransUnion will also take the necessary step of informing the other two credit bureaus about the same.
What is Credit Repair?
In the most basic terms, credit repair is the process of identifying and removing negative information from your credit report. When you do that, you would be able to get a better credit report which would ultimately lead to a better credit score. Professional credit repair agencies make use of multiple techniques to remove negative information from your report. Some of the techniques you should know about include credit report disputes, goodwill letters, pay for delete, and debt validation.
Aspects of Credit Repair
Now that you are familiar with credit repair basics, you need to delve a little deeper and understand how the process works. Here are some of the critical aspects of credit repair you should know:
● Analysis of credit report
One of the first things to do in credit repair is the analysis of your credit reports. You can procure your credit report from any major credit bureau and ask a professional to analyze it. They would carefully look for inaccurately reported negative information and use various ways to remove it. For instance, they would raise the credit dispute with the concerned agency and ask them to rectify the reported errors.
● Determination of the credit repair techniques
As we mentioned earlier, most agencies use various techniques to improve your credit. While each method is used in specific situations. Determining the method you need to use in a particular situation requires much deliberation. For instance, while the credit dispute technique would be suitable in a situation. A goodwill letter would be more apt in others. Depending on the situation and the requirements, you can make an informed decision.
● Elimination of “inaccurate” negative information
When seeking credit repair services, it’s essential to know the difference between negative and inaccurate information. When professionals are inspecting your credit reports, they can work towards removing incorrect negative information. However, in case the negative information in your credit report is accurate. It would be more challenging to remove it from the report. You need to be patient and thorough with the concepts to conclude.
Finally, you need to have information about the supposed impact of credit repair on your credit score. Well, once all the inaccuracies and negative information are removed from your credit report. You would have a good credit score. It means that the problems you were witnessing in your financial dealings would resolve to a major extent. You need to ask professionals to know more about this method.