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Small Business IntelliscoreSM
Evaluate the creditworthiness of a small business with greater speed and accuracy
Gain insight into credit risks associated with a business and its proprietors
in a single score.
Improve bottom-line performance Knowledge is power. In an era when
business proprietors often leverage
personal assets to meet business
obligations, combining the proprietor’s
personal credit with a small business’s
commercial credit information is not
only permissible under the Fair Credit
Reporting Act — it’s an essential
business credit practice.
Studies have shown that blending
both business and personal credit
performance is significantly more
predictive of small-business credit risk
than using either a commercial or
a consumer risk model alone.
In order to provide greater predictive
power and improve bottom-line
performance, Experian’s Small Business
IntelliscoreSM has been refined using
advanced statistical techniques and new
data variables to score more records
than ever before, with unparalleled
accuracy.
The result is a precision tool that utilizes
key risk variables, such as recent credit
inquiries, new account activity, key
financial ratios, credit line information
and performance indicators, to make
managing small-business credit risk
easier than ever.
An effective alternative to traditional bureau scoresTraditional bureau scores provide you
with only a fraction of the information
you need to make an informed decision.
Small Business Intelliscore is the product
of the combined efforts of Experian’s
Business Information Solutions group
and Experian-Scorex, one of the world’s
foremost decision-support companies.
The result is a powerful new decisioning
tool that allows you to more effectively
acquire, retain and manage small-
business accounts.
Sample Small Business Intelliscore report from Experian1 Company information Key information, including business
name, address, phone number, Experian BIN and years-on- file date with Experian.
2 Full report number Need additional details? Use the
full report number within 72 hours to receive a full report containing the Small Business Intelliscore, Business Profile Report and Business Owner Profile at a reduced rate.
3 Proprietor information Name and address associated with
the proprietor of the business. Report may list up to two proprietors.
4 Small Business Intelliscore A statistically based credit risk score
that combines business and proprietor credit data to predict the likelihood of serious delinquency in the next 12 months. Scores range from 0 to 100, where lower scores indicate higher risk.
5 IntelliscoreSM action Provides default risk assessment
message or may be customized to display your own policy message based on the score range.
6 Key Intelliscore factors Indicates the factors that are most
influential in the Small Business Intelliscore. These factors may be positive or negative.
7 Derogatory filings Legal filings and collections that may
impact the business’s performance, including the date range of the filings.
8 Trade experiences Summarizes the number of trade
experiences, trade performance and amount of credit extended.
9 Scorex PLUSSM score A statistically based consumer credit
risk score that predicts the likelihood of serious delinquency in the next 24 months. Scores range from 300 to 900, where lower scores indicate higher risk.
10 Key Scorex PLUS score factors Indicates the negative factors that
are most influential in calculating the Scorex PLUS score.
11 Proprietor credit risk information Summary of the proprietor’s consumer
credit performance, including credit performance, trades, balances and adverse actions.
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Using consumer credit information for business purposesAccording to the Federal Trade Commission, the
federal Fair Credit Reporting Act applies when
a consumer credit reporting agency, such as
Experian, furnishes information from its database
on an individual business proprietor. The Fair
Credit Reporting Act permits Experian to furnish
such information to a person Experian has reason
to believe (1) intends to use the information in
conjunction with a credit transaction involving
the consumer on whom the information is to be
furnished and/or involving the extension of credit
to, review of, or collection of an account of the
consumer or (2) otherwise has a permissible
purpose under the Fair Credit Reporting Act.
Consistent with the Federal Trade Commission’s
position, you may obtain a Small Business
Intelliscore report on the following:
• The owner of an unincorporated business
• General partners in a partnership
• Individuals who have guaranteed, in writing,
the business obligation
• Individuals who have provided you with
written authorization approving your review
of their personal credit history
Use limitationsGenerally, you may not obtain a Small Business
Intelliscore report unless you have a permissible
purpose under the Fair Credit Reporting Act.
Specifically, except as outlined previously, you
may not obtain a Small Business Intelliscore
report in the following circumstances:
• On an employee of a company you
are researching
• On yourself, your coworkers, friends,
family or acquaintances for personal,
family or household purposes
• When a consumer statement appears on a
credit record, Experian® is required to return a
full Business Owner Profile report in addition
to a Small Business Intelliscore report.
You do not need to obtain the consent of the
business proprietor before obtaining a Small
Business Intelliscore report as long as you are
ordering the report for a “permissible purpose.”
However, obtaining written authorization from
the principal (and providing evidence of such
to Experian) is itself a permissible purpose for
ordering a Small Business Intelliscore report.
Adverse action — notification of principalAs noted, it is the position of the Federal Trade
Commission that information drawn from a
consumer report file retains its character as a
consumer report, even if furnished in connection
with a commercial credit transaction. Therefore,
credit grantors should provide notice to the
applicant when the information contained in
the Small Business Intelliscore was a factor in a
commercial credit declination. The Fair Credit
Reporting Act contains specific requirements,
identified in Section 615, that must be
communicated when adverse action results from
your use of a Small Business Intelliscore report.
Often credit grantors turn to their consumer
loan departments for assistance. In addition,
notice obligations may exist under the Equal
Credit Opportunity Act and Regulation B. Credit
grantors should consult their legal counsel with
respect to all required notices.
Inquiry identificationSmall Business Intelliscore inquiries will appear
on the individual’s consumer credit report and
will include your business name and address.
Experian identifies its Small Business Intelliscore
inquiries as business inquiries so that consumer
credit grantors can separate a subject’s business
credit activity from the subject’s consumer
credit activity.
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4377B-0807 CS
www.experian.com
To find out more about Small Business
Intelliscore, contact your local Experian
sales representative or call
800 520 1221.
475 Anton Blvd.
Costa Mesa, CA 92626
800 520 1221
© Experian Information Solutions, Inc. 2007
All rights reserved
8130/1922 08/07
Experian and the marks used herein are service marks or
registered trademarks of Experian Information Solutions, Inc.
Other product and company names mentioned herein may be
the trademarks of their respective owners.
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