Business owners will soon get a look at how their credit is being scored by the Fair Isaac Comp. (FICO) To this point business FICO credit scores have only been available to lenders evaluating a business for a loan. Now, perhaps in an effort to cut in on the market share of other credit scoring companies, FICO will allow business owners to access their credit profiles and scores.
“The management and growth of a small business often comes down to its access to credit at favorable terms,” said David Vonk, vice president at FICO in a press release. “That’s why it’s so important for small business owners to understand how lenders view them and how to build and maintain good credit health. Together with Creditera, that’s what we’re providing small-business owners: industry-standard small business scores and related information needed to monitor their businesses financial health and improve their access to capital.”
Currently, the most widely used credit-scoring firm for businesses is Dun & Bradstreet. The D& B Paydex score is most popular in the small business lending world. And Paydex scores have been available to business owners themselves for years already. They can pay $49 a month to view the full report and score and for free they can be alerted whenever there are changes to the score.
Now FICO is opening up the same accessibility for its customers. Joining forces with online credit monitoring systems like Creditera, business owners can pay a fee to see how FICO rates their firms credit. Creditera plans to offer monitoring services of both business and personal credit scores for $49.99 a month.
“This provides small business owners with access to a tool they’ve never had before – a small business score generated by [FICO LiquidCredit Small Business Scoring Service],” said Levi King, CEO and co-founder of Creditera. “With so many lenders using the LiquidCredit SBSS to make their lending decisions, it’s important that business owners can see and understand their score. We are excited to give small business owners a real-time look into not only their small business score, but the reasoning and influences behind their score, which includes a mix of credit and other financial data.”
by Ethan Leak