Here is something directly from Experian business credit website. I left it unchanged with the link. Have a quick read and I will highlight the most important points later:

Understanding Business Credit

Why did my business credit score change?

It is not uncommon for your business credit score to fluctuate slightly. Using our model for business credit scores, we examine more than 140 variables to determine your score. There are many factors — beyond what is displayed on the business credit report — that may cause your score to shift.

Factors include, but are not limited to:

  • The presence of derogatory public records on the business profile, such as collections, liens, judgments and bankruptcies
  • The status, recency, frequency and dollar amounts of any applicable liens, judgments or bankruptcies
  • An increased trend in slow payment of obligations
  • An increase in the number of business credit inquiries or applications that are generated by the business or the owner
  • The number of trade experiences, balances outstanding, payment habits, credit utilization and trends over time
  • Years in business, line of business or Standard Industrial Classification (SIC) code, size of business and other demographic data
How Business Credit Scores are Calculated

Business credit scores range from 0 to 100, with 0 representing a high risk and 100 representing a low risk. Scores are based on a number of factors contained in your business credit report.

  • Number of trade experiences
  • Outstanding balances
  • Payment habits
  • Credit utilization
  • Trends over time
  • Public record recency, frequency and dollar amount
  • Demographics such as years on file, Standard Industrial Classification codes and business size

Here are the points that I feel are the most note worthy:

  • “..presence of derogatory public records ..such as liens”
  • “..Standard Industrial Classification (SIC) code, size of business and other demographic data”
  • “We examine more than 140 variables to determine your score.”   – 140 variables !
  • “There are many factors — beyond what is displayed on the business credit report”
  • “The status, recency, frequency and dollar amounts of any applicable liens,…..”
  • Public record recency, frequency and dollar amount”

This is coming directly from Experian.  As I always say – it is your complete business file that will maximize your business credit potential. Please look beyond Paydex scores and vendor credit.

I can assure you that most people can do it and if you do it, aim high.

Click here for the articles directly from the Experian site

http://www.experian.com/business/page5.html

Notice this point 5. They actually talk about UCC filings. Need I say more.

For more info and many more free articles  click below:

www.ucc-1credit.com

Aimanzul

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