Commercial Collections Blog

When a lender considers extending a line of credit to a company, one of the items it will look for is a well-prepared business proposal with proper supporting documentation. Besides stating the purpose of the loan and exactly how the money will be used, some additional supporting documents the lender will look for are; resumes of the principals of the business, a repayment schedule that shows the ability to pay back the loan, collateral to secure the loan, business and personal credit scores (a credit score is simply a measure that estimates, based on solid data, the probability of an individual to pay their debts to their lenders) and  business and personal financial statements. This are basic concepts when small or mid-size business are watching when extending line of credit to customers, so when you request a credit line and you are into a position of financial strength, healthy bank rating, good credit score for your business, good cash flow, etc, your chances of being approved is much greater.
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Technorati Tags business credit report, collection agency, Credit Score, creditors

Business Owners have trouble with there Credit Score. My wife and I have been shopping for a mortgage the last month and everywhere tells us 620 score needed. One lender last week pulled my score and it was Ex: 598 EQ:537 and TU: 553. This week one lender pulled my score and it was EX :565 EQ: 530 and TU: 565. I just can not believe that in one week my credit score with Experian went from a 598 to a 565, a 33 point difference ! On Feb. 4th this year, I pulled it my self it I had an Experian Vantagescore of 615! Also, Each lender I have talked to said you must pay off all collection accounts, SO promptly today after hearing this drop, I called up and promptly paid off each and every Collection of mine except for one , where it was “charged off”  in Oct of 2008. By doing that will it increase my Credit Score and by how much? I did obtain letters from each company reguarding the pay offs. Also I am self-employed, My taxes for 08, state I made 4K profit and combined with my wife’s equaled 18k (I actually made 30k but I was able to write most of it off), On 09 taxes, I was the sole provider as my wife lost her job and worked with me. We made 80k last year but again our AGI was 38k. I have bank statements that show I make deposits in access of 10k a month. Therefore after paying off these collections , should I be in a better spot to be approved for a loan? SHould my score rise by paying off these collection and if so how much? I only have one credit card whose balance is 200 dollars and a New Car Loan that is 4 months old.

Technorati Tags Credit Score