The truth behind the magic: the secrets of using consumer and commercial credit information in targeting small business risk.(SELECTED TOPIC)

Business Credit, June, 2005 by Meder, Dan

Accurately determining the creditworthiness of a small business can be difficult, and in years past some systems purporting to do so seemed about as reliable as a Magic 8 ball. Despite significant advances over the past five years, many credit issuers still size up the potential performance and risk of small businesses with one limited measure: consumer credit information of the owners.

That's a start, but it presents an incomplete picture. Or as the 8 Ball might put it, "Reply hazy. Try again." The best view on judging the creditworthiness of a small ...