XBanker

Urge Your Vendors to Report Part II

October 8th, 2008

A few months ago, I reported on Experian’s effort to get companies to report business credit accounts to Experian. Now D&B is trying to make it easier for companies to report as well. They have launched a free service companies can use to report their accounts receivables to D&B from Quickbooks.

I can say from experience that in the past, reporting to D&B has been difficult and expensive. While I haven’t given this service a try, it sounds like it could be a very useful tool for business owners who want to report. Business owners who are trying to build business credit may want to urge their lenders and vendors to check it out.

The downside, of course, is the possibility that mistakes and false information may be reported. Without a law that gives business owners the right to view and dispute their credit information for free, it’s possible that one of your vendors or clients is reporting wrong payment info — and you don’t know it.

If you try out this service, I’d love to hear how it works for you!

Posted by Gerri Detweiler | Currently No Comments »

Improve Your Cash Flow: Collect Debts You Are Owed

September 15th, 2008

Recently a friend called me about a debt she is owed. She operates a small business consulting firm and another small business owner stiffed her for about a grand. It’s not a huge amount of money, but collecting it would make a difference to her. (And since she provided the service, she should be able to collect.)

She was asking for my advice in collecting.  An attorney was out of the question (too expensive - and the client is in a different state) and the collection agency she had contacted wasn’t interested in one small debt.

Here’s another option she might consider:

Dun & Bradstreet’s Debt Collection Services
Affordable Debt Collection Services

Their offerings include:

• DunsDemand Letter - send a “wake up call” to slow payers

• DunsDemand Letter Series - convey the seriousness of the delinquency and escalate the collection process by sending three letters

• Contingent Collection - an effective combination of DunsDemand Letters and telephone calls made by a professional collections agent

How it works:

DunsDemand Letters are sent within a 30 day period by Receivable Management Services, a D&B partner, on your behalf. These letters will be sent on RMS letterhead and will have a tear-off remittance included for your customers to mail their payments directly to you

Starting at just $25, these services aren’t expensive and might just do the trick. If your business is owed money, it might be worth a try.

Posted by Gerri Detweiler | Currently No Comments »

Does A Car Lease Affect My Credit?

September 12th, 2008

Here’s a question from a reader:

Does signing a car lease and making those payments impact personal credit in any way? The short answer is, “It may.”

If the car lease is a personal lease, and is reported to the credit reporting agencies (most are, but not all), it will affect your credit. Whether it helps or hurts depends on all the other information in your credit report. If you already have a lot of debt and payments, then it could be negative. If not, it may be a positive.

Even if the lease doesn’t impact your score much, it can affect your credit in other ways. I recall one entrepreneur, for example, who was charged a higher rate for her mortgage due to an expensive car lease payment that appeared on her credit report. Except it wasn’t hers. When she got it removed, her interest rate improved.

If the vehicle is leased under a business lease, and does not appear on your credit report, then it will not affect your personal credit.

Posted by Gerri Detweiler | Currently No Comments »

Does A Car Lease Affect My Credit?

September 12th, 2008

Here’s a question from a reader:

Does signing a car lease and making those payments impact personal credit in any way? The short answer is, “It may.”

If the car lease is a personal lease, and is reported to the credit reporting agencies (most are, but not all), it will affect your credit. Whether it helps or hurts depends on all the other information in your credit report. If you already have a lot of debt and payments, then it could be negative. If not, it may be a positive.

Even if the lease doesn’t impact your score much, it can affect your credit in other ways. I recall one entrepreneur, for example, who was charged a higher rate for her mortgage due to an expensive car lease payment that appeared on her credit report. Except it wasn’t hers. When she got it removed, her interest rate improved.

If the vehicle is leased under a business lease, and does not appear on your credit report, then it will not affect your personal credit.

Posted by Gerri Detweiler | Currently No Comments »

In Credit Crunch, Business Comes First

September 8th, 2008

Business owners are electing to pay business debts at the expense of personal debts, reports Experian(tm). In a comprehensive study covering 2.7 million business owners over the course of a year, the global information services company found that found that business owners with a severe mortgage delinquency were more likely to pay their business obligations instead of their mortgage.

Experian’s research showed that because of deteriorating equity, high mortgage payments and limited refinancing options, business owners chose to ensure the business’ survival, preserving their source of income at the risk of losing their home. That’s the bad news.

Here’s the good news:

Business owners were less likely to experience a 90+ day delinquency on their mortgage than other consumers. In fact, by April 2008, the average home owner was 1.5 times more likely to experience severe mortgage delinquency than the average business owner

Additionally, Experian’s study found that small-business owners are relying on commercial lending options more often than personal financing options, to support their businesses. We think that’s smart business and it may very well allow the business owner to keep their business even if they have to start over personally.

But of course, the downside is that business owners’ personal credit can impact their business financing. Experian, which sells a credit score that blends the business owner’s credit with the credit of the business, points out that consumer scores work great for assessing consumer risk, but their blended score performs nearly twice as well as a consumer score for assessing business risk.

Posted by Gerri Detweiler | Currently No Comments »