There are three major companies that collect business information and publish it. Dun & Bradstreet is the biggest with over 210 million records on file. Experian is the second biggest with over 27 million records on file. Equifax is the smallest business CRA.

1. Experian Business DECODED

2. Ty Crandall
Director of Business Services
(877) 600-2487
ty@creditsuite.com

3. Business Credit Reporting Agencies
• There are three major companies that collect
business information and publish it
• Dun & Bradstreet is the biggest with over 210
million records on file
• Experian is the second biggest with over 27
million records on file
• Equifax is the smallest business CRA

4. Experian Business
• Experian focuses on providing quality data and
analytics to businesses to help them better assess
risk
• They possess a massive consumer and
commercial database that they manage to help
businesses obtain the best and most up-to-date
information
• They then extract significant extra value with this
data by applying their own proprietary
analytics and software

5. Experian
• Use both consumer and business credit
information to gauge risk
• “By combining personal and commercial credit
information in one report, Experian provides a
complete picture of the creditworthiness of
small businesses”
• Experian plc is listed on the London Stock
Exchange (EXPN) and in a constituent of the
FTSE 100 Index

6. 2013 Annual Report
Info- Revenue by Region
• 4.7 billion in revenue in 2013
• North America 48%
• Latin America 21%
• UK and Ireland 19%
• Asia Pacific 12%

7. Experian
• Experian’s headquarters are in Dublin, Ireland
• Experian’s business records are spread over 80
countries that Experian services
• Experian’s reach is across four main
geographic regions, including North America,
Latin America, UK and Ireland, and EMEA/
Asia Pacific

8. A typical Experian business credit report
will include…
• A company’s registration and ownership
details
• Trading addresses
• How quickly the business is paying its bills
• A credit risk score
• Court judgments
• History of financial performance

9. A typical Experian business credit report
will include…
• Business Background Information
• Company Financial Information
• Credit Score and Risk Factors
• Banking, Trade, and Collection
History
• Liens, Judgments, and Bankruptcies
• Uniform Commercial Code Filings

12. Experian’s Intelliscore
• Experian’s most recent score system is known
as Intelliscore Plus, which they boast of as the
next level in credit scoring
• This method was released in 2008
• Intelliscore Plus takes into account hundreds
of variables to offer a business score between
0-100, with 100 being the highest

13. Experian’s Intelliscore
• Intelliscore Plus is advertised as a highly
predictive score that provides a very detailed
and accurate reflection of a business’s risk
• Intelliscore actually predicts a business’s risk
of going seriously delinquent, or over 91 days
late, or having a major financial issue such as
bankruptcy within the next 12 months

14. Experian’s Intelliscore
• The 0-100 is a percentile score that reflects
the percentage of businesses that score higher
or lower than the specific business being
looked at
• For example, if the business has a score of 20,
this means that company scores better than
19% of other businesses
• That also means that 80% of other businesses
score higher than that business

15. Experian’s Intelliscore

16. Exclusion Scores
• 998 displays as a score when there is a
bankruptcy within the last two years
• 999 displays when there is not enough
information to score a report

17. Experian’s Intelliscore
• Intelliscore is already being widely used.
• Many of the largest financial institutions
worldwide use it, along with over half of the
top 25 P&C insurers and most major
telecommunications and utility firms
• Industry leaders in transportation,
manufacturing, and technology have also
been known to use Intelliscore as their
primary risk indicating model

18. Experian’s Intelliscore
• The new Intelliscore Plus has over 800
aggregates or factors that affect the credit
scores
• Scores are assessed on the more than 7.2
million businesses in Experian’s

19. Experian’s Intelliscore
• Experian first takes a business and looks at data
segments such as firmographics, public records,
collections, and trade information, then places
each business in one of three different models
• The first is their Commercial Model, for small,
medium, and larger businesses
• Second is their Blended/ Owner Model, where
the commercial data is then linked with the
owner’s information
• Thirdly there is the Intelliscore Plus, or their
percentile score

20. Experian’s Intelliscore Breakdown
• Intelliscore Plus, just like FICO, has multiple facets
to the entire score makeup.
• The score is still based on the payment history of
the business, but many other factors tie into
percentages of the overall score.
• The Historical Behavior or payment history
accounts for 5-10% of the total score
• Current payment status, trade balances, and
percent of accounts delinquent account for 50-
60% of the score makeup

21. Experian’s Intelliscore Breakdown
• The business’ credit utilization affects 10-15% of
the total score. This has to do with the amount
of credit that has been extended to the business
in relation to the balances they currently have on
those accounts.
• The company profile, age of business, industry
risk, and size of business assessed by number of
employees accounts for 5-10% of the total score.
• And 10-15% of the total score is determined
based on the derogatory items, collections, liens,
judgments, and bankruptcies that business has

22. Experian’s Intelliscore Breakdown
• Historical Behavior 5-10%
• Age, Industry, Size 5-10%
• Credit Utilization 10-15%
• Derogatory items 10-15%
• Payments, Balances 50-60%

23. Experian’s Intelliscore
• When Experian is assigning a business a credit score
they take many factors into account
• They refer to these factors as predictive data, and use
this data to better determine a business’s lending risk
• Multiple factors affect the score, including average
balances on accounts, how recent are the
delinquencies, what number and what percent of
accounts are current versus delinquent, the percent of
balances seriously delinquent, the overall utilization
ratio, and any balances on leases

24. Intelliscore
Data is collected from
–Credit obligation information from suppliers
and lenders
–Legal filings from local, county and state courts
–Company background information from
independent sources, including state filing
offices, public records, credit card companies,
collection agencies, corporate
financial information and
marketing databases…

25. Intelliscore
… and combined with data from other sources
including:
–Actual trade payment experiences submitted
by payees
–Public record information
–Collections information
–Company background and
comparative data that places a
company’s payment performance
in context within its industry

26. Intelliscore
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

27. Intelliscore
• “Calculated by a statistically derived algorithm, designed
to determine risk based on multiple factors”
• Credit: Number of trade experiences, balances
outstanding, payment habits, credit utilization and
trends over time
• Public Records: Recency, frequency and dollar amounts
associated with liens, judgments or bankruptcies
• Demographic Information: Years on file, Standard
Industrial Classification (SIC) code and business size

28. Experian’s Financial Stability Risk Score
(FSR)
• Predicts potential of a business going bankrupt or
defaulting on its obligations
• The Financial Stability Risk Score (FSR) identifies the
highest risk businesses by utilizing payment/public
records such as:
– Severely delinquent payments of 61+ and 91+ days
– High utilization of credit lines
– Tax liens
– Judgments
– Collection accounts
– Risk industries
– Low years in business and much more.

29. Experian’s Financial Stability Risk Score
(FSR)
• Scores range from 1-100
• Broken down into 5 Risk Classes

30. Experian’s Financial Stability Risk Score
“Financial Stability Risk Score is the perfect tool to
identify “slow pay but will pay” accounts and thus
set the appropriate deposit or other risk policy.
Managing existing accounts is highly efficient since
you focus on the bottom 10 percent of scores,
where the power of Financial Stability Risk Score
captures 60 percent of potential risk accounts.”

31. Experian’s Financial Stability Risk Score

32. Experian’s Financial Stability Risk Score

33. Experian’s Blended Score
• A one-page report providing summary
information on both the business and the
business owner
• Research shows that a combined
business/owner credit-scoring model is more
predictable than business or consumer only
scoring models

34. Experian’s Blended Score
• Study showed that when trouble hit a business
blended scores dropped an average of 30% over
the four quarters leading up to the “bad” event
• Their consumer scores of the owner showed no
statistically significant decline over the same
period
• The score evaluates the personal information on
the owner as it relates to business performance

35. Experian’s Blended Score
• 53% of problems for a business revealed their
first signs of credit problems on the business
credit reports
• 46% of problems first showed up on the
owner’s personal report
• Blended scores outperform consumer or
business alone by 10-20%

36. Interesting Fact
Of the more than 500,000 suppliers extending
credit, only about 10,000 report to Experian

37. Time Data Stays on Experian
Business Files
• Trade data: 36 months
• Bankruptcies: nine years and nine months
• Judgments: six years and nine months
• Tax liens: six years and nine months
• Uniform Commercial Code filings: five years
• Collections: six years and nine months
• Bank, government and leasing data: 36 months

38. What can lower a
business credit score…
• Current collections, liens, judgments,
bankruptcies or other derogatory public records
on your business profile
• The status, recency, frequency and dollar
amounts of any applicable liens, judgments or
bankruptcies
• An increased trend in slow
payment of obligations

39. What can lower a
business credit score…
• 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

40. Improving Your Experian Score
• Advice from Experian
• Make sure that your vendors are reporting
your payments, because the more vendors
that report a positive credit history to the
credit reporting agencies, the higher your
business credit rating will be.

41. Improving Your Experian Score
• Repair the damage. The quickest way to begin
to improve bad credit is to pay off your debts.
• Decreasing the balance on your business
credit cards can have an immediate impact on
your business' credit rating.
• If you have good credit, requesting a credit
line increase can improve your credit even
more because such an increase lowers the
percentage of your available credit in use.

42. Improving Your Experian Score
• The negatives that lower your score stay on
your credit report for seven years and can
harm your business credit rating.
• Don’t close positive accounts and don’t apply
for a lot of new credit
• Try to keep your balance at 20 percent to 30
percent of your credit limit.

43. Equifax
• Equifax is the oldest and largest credit bureau in
existence today.
• They were originally founded in 1898, 70 years
before the creation of TransUnion.
• Equifax was gathering details about people
including their marital troubles, jobs, school
history childhood, sex life, political activates, and
more
• In response, when the US Congress met in 1971 it
enacted the Fair Credit Reporting Act

44. Equifax’s Credit Risk Score
• Equifax’s main business credit scoring model is
the Credit Risk Score
• This score was created to predict the
probability of a business customer becoming
seriously delinquent on supplier accounts, or
bankrupt, within a 12-month period
• Credit scores range from 1-100, with a lower
score indicating a higher risk of serious
delinquency

45. Equifax’s Credit Risk Score
• By definition the score predicts the likelihood
of a business incurring a 90-days severe
delinquency or charge-off over the next 12
months

46. Equifax’s Credit Risk Score
• Scores of 90 and above express that obligations are
being paid as agreed
• Scores from 80-89 indicate payments are being made
1-30 days overdue
• Scores of 60-79 represent payments being paid 31-60
days past the agreed-upon due date
• Credit scores between 40-59 indicate payments being
made 61-90 days overdue
• Scores between 20-39 mean obligations are being paid
91-120 days overdue
• Scores between 1-19 mean obligations are being paid
120+ days past the due date

47. Equifax’s Credit Risk Score
• Paid as Agreed 90 +
• 1-30 days overdue 80-89
• 31-60 days overdue 60-79
• 61-90 days overdue 40-59
• 91-120 days overdue 20-39
• 120+ overdue 1-19

48. Equifax’s Small Business Credit Risk
Score for Suppliers
• Equifax also provides a business credit score for
suppliers known as the Small Business Credit Risk
Score for Suppliers
• This model is designed to help credit grantors improve
their risk assessment and reduce delinquency rates
while helping to improve profitability
• The score utilizes unique bank loans, lease information,
credit card data, and supplier, Telco and utility credit
history, public records and firmographic data from their
own Equifax Commercial database
• The Small Business Credit Risk Score for Suppliers
credit scores range from 101-816

49. Equifax Business Failure Risk Score
• Equifax also offers a Business Failure Risk
Score with many reports
• This Risk Score predicts the likelihood that the
business will fail or file for bankruptcy within
the next 12-month period
• This model helps identify businesses that pose
a greater risk for failure so that suppliers and
credit grantors can take appropriate actions

50. Score Summary
• Paydex, Intelliscore, and the Small Business
Risk Score are the most popular business
credit scores
• A positive score can be obtained in as little as
60-90 days with all three reporting agencies
• Paying business bills as agreed will net a
positive credit score at all three reporting
agencies

51. Learn More Today…
www.CreditSuite.com
Ty Crandall
877-600-2487
ty@creditsuite.com