APRENDIZAJE SIGNIFICATIVO
4. RESULTADOS Y ANALISIS
4.2 FASE Nº 2: Desarrollo de Unidades Didácticas
Business Credit Reporting Agencies
“Avoid speaking with the business credit agencies at all cost. Communicate with them through fax and email this way they can’t trip you up with questions you are not prepared to answer.” Reginald Ringgold
There are 6 main business credit-reporting agencies, D&B, Experian, Equifax, Client Checker, BusinessInsight/FDInsight, and Business Credit U.S.A./Info U.S.A. The 2 main credit-reporting agencies that most companies use are D&B and Experian. Remember with any of the credit-reporting agencies keep in mind, that private information is privately held. You must decide whether or not to provide financial information to the credit agencies. If you're asked by any of the business credit reporting agencies for financials and you do not feel comfortable doing so, just let them know that they are not available at this time (If you do not provide your financials to Dun & Bradstreet a 2 is the highest composite credit appraisal a company can receive. For more info got to the D&B Rating Interpretation Table in the appendix).
Dun & Bradstreet (D&B)
D&B is by far the world's largest business credit reporting agency, and has been the leading source of business information and insight since it was founded in New York City in 1841 as the Mercantile Agency, the world's first business information provider. The current D&B Corporation was formed upon the separation of Moody's Corporation on September 30, 2000. Over 100 million businesses are registered with D&B.
D&B Checklist
When it comes time to contacting D&B I recommend that you do not do it over the phone. Try to avoid talking to them over the phone at all costs. Instead, contact them by fax or email. This way you don’t have to worry about saying the wrong thing, or them tripping you up with questions that you are not prepared to answer correctly. Before you apply to D&B for a Duns Number, you should (but are not required to) have the following:
1. Incorporate your business and have all your paper work filed and in compliance. Been in business for 2-3 years. Be current on all filing Fees, license fees, & taxes.
2. Have a Web address, E-mail address, and a Physical Address in a brick and mortar style office building with your name strip in the lobby directory. The more the locations the better, no home offices (except when using as another branch location) or P.O. boxes. Make sure the exact same business address is used for your DUNS number, the yellow pages listing and phone number as well as on business licenses and company credit cards that you will be applying for later. D&B will base the number of employees on the square footage of your office. So make sure your office can accommodate at least 10 employees because at least 10 employees are needed to obtain the highest Paydex score.
3. Obtain a local phone, fax and 800#. Make sure phone & fax are listed in the Business Directory (411). Have a live operator answering your phones.
4. File current financial statements and Tax Returns with D&B. (2 is the highest Composite Credit Appraisal a company not supplying D&B with current financial information can receive.)
5. A seasoned (2-3 years) business bank reference with at least a low five figure daily balance (no less than $10,000).
6. Have five trade references with positive payment experiences to report. With the balances no higher than 45% of the high credit available. (If your business does not have trade references then it would be best to apply for a Duns number before you apply for trade references).
Applying for a Duns Number
D&B provides businesses with a separate unique nine-digit identification number that is used to track and rate your business credit profile. Your Duns number is asked for when applying for lines of credit, and with some credit card and leasing companies. Most banks and lending institutions will ask for your Duns number. The U.S. Government requires a DUNS Number before granting any grants or government contracts. Once your Corporation is set up and has been issued a Federal Tax ID number, you can apply for your Duns number online at
http://www.dnb.com. Obtaining a Duns number is free and takes a couple weeks to about two months. If you want to expedite this process D&B offers a credit building service where they build your business credit profile, the normal process for obtaining a Duns Number takes 30 days, to expedite this process you can go through D&B’s Credit Builder program. This service is ideal for businesses that need to establish their credit rating. This program will shorten the normal thirty day process for obtaining a Duns Number to within five business days. This program builds a full credit profile, and assigns a basic set of D&B scores and ratings that potential creditors can view.
If you want a Paydex score to be assigned to your company, then the CreditBuilder Plus is ideal for your business. This service helps businesses establish their credit rating and past payment behavior. CreditBuilder Plus assigns you with a D-U-N-S Number and provides your company with a full D&B credit file, including a D&B PAYDEX score, which can help accelerate the decision process when you're trying to obtain a loan or make purchases on credit. Be prepared to give them the names and phone number of five up to six vendors with whom you have credit terms. D&B will then contact the vendors and get the credit information from them. This program allows your business 30 days to add up to six trade references. Make sure you have notified the vendors and have gone over what they will say before you give their names to D&B. To get a D&B Rating, you must also provide information from your balance sheet, company history, officers, etc. The D&B CreditBuilder Plus service currently will cost you $599.00.
D&B also has another program called the CreditBuilder Premium, this program gives you the same benefits as the CreditBuilder & CreditBuilder Plus in addition this program allows your business12 months to add an unlimited number of trade references. The D&B Credit Builder Premium program currently cost $799
(BE VERY CAREFUL USING THESE SERVICES!). Ever heard of the expression you only get one first impression. This is no understatement when it comes to Dun & Bradstreet. You only get one chance to give the correct information. Normally it takes 30 days to receive your Duns Number but you can pay a fee to expedite the process.
What's a Business Credit Profile?
Your business credit profile is your businesses credit report, or your businesses resume; some say your business plan is your businesses resume and I do not disagree, but your business credit profile contains critical information that other businesses will use when deciding whether, and on what terms, to do business with you. The credit profile created by D&B is created using information provided by the business owners and vendors of the business which is put into the Duns right system to check for accuracy, which then grants a Paydex score and a Duns Rating to businesses based on the payment experiences and the financials of the business. With the global data collection system D&B continually gathers the data that initiates the creation of business credit profiles on new companies. Many kinds of activities can trigger a profile on a new company, such as incorporating your business, applying for a loan, getting a business telephone number, taking out a lease on office space, even just if another company seeks information from D&B about your business. But still, a new business may not have a complete business credit profile. Like a personal resume, it's important that the information in your profile is complete, accurate and timely. It is true no one knows your business better than you and your business partners. You might have a thriving and profitable business, but when doing business with other companies, often what matters most is what is documented in the credit profile they receive from Dun & Bradstreet on your company. Most companies want a complete and unbiased view of who you are (and how risky it might be to work with you). Paydex scores and business credit reports give companies that want to do business with your company a fast, objective measurement of your credit risk.
D&B’s Different Business Credit Reports
D&B has three levels of reports to choose from:
The Credit eValuater Report: for low risk credit decisions
The Comprehensive Insight Plus Report: for high-risk credit decisions
You can pay per report, and the prices are reduced for D&B subscribers. The cost per report to nonsubscribers is $29.99, $109.99, & $149.99 with the minimum report you obtain D&B’s assessment of credit worthiness based on past performance, this report is free for subscribers.
You should think about your business credit profile in terms of: What is it telling other companies about your company?
How does your current business Paydex scores affect the interest you pay on your existing business loans?
Did you get the best terms?
Have your Paydex scores improved enough to consider refinancing or extending your credit lines?
Do new suppliers extend you favorable credit terms, or do they ask you to pay cash on delivery?
If your answer to any of the above questions is "I don't know", your business credit profile may not be working to your advantage; it may actually be costing you money.
You Should Make Sure You Have a Business Credit Profile If….
You are planning to a obtain business loan. You need to purchase or lease equipment Your cash flow is tight
You want to insure you are getting a fair deal from lenders compared to your competition.
You want to pay net 30 days instead of C.O.D (cash on delivery). You are paying interest at prime plus one, or even higher.
You plan to do business with entities that require a D-U-N-S Number, e.g. the US government.
These issues and many more like them can be addressed by having a strong business credit profile. A good business credit rating provides you with the financial freedom to take the steps needed for your business to grow, and is a straightforward, unbiased method for other companies to assess your level of risk when considering doing business with you. A poor credit rating will hinder a company’s growth and success preventing you from getting adequate funding on fair terms.
Information that goes into creating a business is credit profile comes from a variety of sources, such as:
payment and baking data from company suppliers, suits, liens and judgments, UCC's, business registrations, incorporations and bankruptcy filings from the state and country courthouses, corporate financial reports, contracts, grants, loans, and debarments from the federal government.
In the case of your Dun & Bradstreet business credit profile, direct investigations and interviews with company principles (i.e. Self-reported data) and other companies that you work with.
What is in my Duns profile?
Executive Business Summary
The Executive Summary provides for convenient review of key report findings. It provides a company’s Duns number, Duns rating when available, address and contact information, number of employees, year business started, date of current management control, line of business, and any other key company information in D&B's database.
Special events section: Alerts you to any occurrences that may impact a firm's ability to pay promptly, such as bankruptcies, changes in ownership, acquisitions, or natural disasters.
Payment analysis by industry: Payments by suppliers' line of business provide insight into how you might be paid.
Public filings summary: has information on important legal activities, such as bankruptcy filings, and number of suits, liens, and judgments that may impact a firm's ability to pay.
Banking section: Informs you about a company's accounts, loans, and when available, a bank evaluation that depicts a company's overall banking relationships. Financial Summary: is a comparison to key financial ratios for the company's industry.
Credit Capacity Summary: is a glance at the number of credit experiences by dollar amount, as well as percent paid within terms.
Duns Profile Example (Business Information Report)
ATTN: John Doe Report Printed: BUSINESS SUMMARY
G&M Manufacturing Company, Inc 123 ABC STREET
SAN FRANCISCO, CA 94110
Do not confuse with other G&M
companies, this is a fictitious company report used for demonstration purposes. This is a headquarters location.
Branch (es) or division(s) exist. Telephone: 650 555-5555
Manager: JANE DOE
Year started: 1955 Employs: 110 (100 here) Financial statement date: DEC 31 2000 Sales F: $19,683,736 D-U-N-S® Number: 80-773-4378 SIC: 2752
Line of business: COMMERCIAL PRINTING D&B Rating: -- D&B PAYDEX®:
12-Month D&B PAYDEX: 36
When weighted by dollar amount, payments to suppliers average 72 days beyond terms.
Net worth F: $3,160,644 History: CLEAR Financing: SECURED SPECIAL EVENTS 05/17/2002
On April 20, 2001 the subject experienced a fire due to an earthquake. According to John Doe, president, damages amounted to $50,000, which were fully covered by their insurance company. The business was closed for two days while employees settled personal matters. SUMMARY ANALYSIS D&B Rating: --
The blank rating symbol should not be interpreted as indicating that credit should be denied. It simply means that the information available to D&B does not permit us to classify the company within our rating key and that further enquiry should be made before reaching a decision. Some reasons for using a "-" symbol include: deficit net worth, bankruptcy proceedings, lack of insufficient payment information, or incomplete history information. For more information, see the D&B Rating Key.
Below is an overview of the company's rating history since 04/04/01: D&B Rating Date Applied -- 04/04/01
The Summary Analysis section reflects information in D&B's file as of May 20, 2002.
CUSTOMER SERVICE
If you have questions about this report, please call our Customer Resource Center at 1.800.234.3867 from anywhere within the U.S. If you are outside the U.S. contact your local D&B office.
*** Additional Decision Support Available ***
Additional D&B products, monitoring services and specialized investigations are available to help you evaluate this company or its industry. Call Dun & Bradstreet's Customer Resource Center at 1.800.234.3867 from anywhere within the U.S. or visit our website at www.dnb.com.
HISTORY
The following information was reported 05/17/2002:
Officer(s): JOHN DOE, PRESIDENT
JANE DOE, SEC-TREAS
DIRECTOR(S): THE OFFICER(S) and Corporate details under investigation.
Corporate details under investigation.
Business started 1955 by John Doe and Jane Doe,
JANE DOE born 1926. Graduated from the University of California, Berkley, CA, in June 1947 with a BS degree in Business Management. 1947-65 general manager for Rusty’s Printing Co, San Francisco, CA. 1965 formed subject with John Doe.
JOHN DOE born 1925. Graduated from Stanford, Palo Alto, Ca in June 1946. 1946- 1965 was general manager for Rusty’s Printing Co, San Francisco, Ca. 1965 formed subject with Jane Doe.
AFFILIATE:
G&M Affiliate Ltd, San Francisco, CA, started 1965. Operates as commercial printer. Intercompany relations: None reported by management.
CORPORATE FAMILY
The following list is updated monthly.
Click below to buy a Business Information Report on that family member.
For more details on the Corporate Family, use D&B's Global Family Linkage product.
Global Ultimate:
G&M Co. Inc. London, UK DUNS # 81-577-3744
Domestic Ultimate:
G&M International Inc. San Diego, CA DUNS # 81-577-3744
Parent:
G&M Brothers Inc. New York, NY DUNS # 81-577-3744
Headquarters:
Gorman Co. Inc. San Francisco, CA DUNS # 81-577-3744
Subsidiaries:
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
More than 25 subsidiaries are available for this business.
For the complete list, use D&B's Global Family Linkage product. Branches:
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
G&M Co. Inc. San Francisco, CA DUNS # 81-577-3744
More than 25 branches are available for this business.
For the complete list, use D&B's Global Family Linkage product.
BUSINESS REGISTRATION
CORPORATE AND BUSINESS REGISTRATIONS PROVIDED BY MANAGEMENT OR OTHER SOURCE
The Corporate Details provided below may have been submitted by the management of the subject business and may not have been verified with the government agency, which records such data.
Registered Name: G&M Manufacturing Company, Inc.
Business type: CORPORATION
Corporation type: PROFIT
Date incorporated: MAY 21 1955
State of incorporation: CALIFORNIA
Filing date: MAY 21 1955
Registration ID: testcase101 Common stock Authorized shares: 1,000 Par value: 1.00
OPERATIONS 05/17/2002
Description: Commercial printing specializing in advertising posters, catalogs, circulars and coupons.
ADDITIONAL TELEPHONE NUMBER(S): Facsimile (Fax) 512 794- 7670.
Has 200 account(s). Net 30 days. Sells to commercial concerns.
Nonseasonal.
Employees: 110, which includes partners. 100 employed here.
Facilities: Rents premises in a one story cinder block building.
Location: Central business section on well traveled street.
Branches: Subject maintains a branch at 321 XYZ Street, San Diego, CA.
SIC & NAICS
SIC:
Based on information in our file, D&B has assigned this company an extended 8- digit SIC. D&B's use of 8-digit SIC's enables us to be more specific to a company's operations than if we use the standard 4-digit code.
The 4-digit SIC numbers link to the description on the Occupational Safety & Health Administration (OSHA) Web site.
NAICS:
Links open in a new browser window. 27520000 Commercial printing, lithographic D&B PAYDEX
The D&B PAYDEX is a unique, dollar weighted indicator of payment performance based on up to 266 payment experiences as reported to D&B by trade references. 3-Month D&B PAYDEX: 23
When weighted by dollar amount, payments to suppliers average 111 days beyond terms.
Based on trade collected over last 3 months.
12-Month D&B PAYDEX: 36 When weighted by dollar amount, payments to suppliers average 72 days beyond terms.
Based on trade collected over last 12 months.
When dollar amounts are not
considered, then approximately 13% of the company's payments are within terms.
PAYMENT SUMMARY
The Payment Summary section reflects payment information in D&B's file as of the date of this report.
Below is an overview of the company's dollar-weighted payments, segmented by its suppliers' primary industries:
Total Rcv'd (#) Total Dollar Amts ($) Largest High Credit ($) Within Terms (%) Days Slow <31 31-60 61-90 90> (%)
Misc. business service
7
The highest Now Owes on file is $2,000,000 The highest Past Due on file is $1,000,000
Dun & Bradstreet has 266 payment experiences in its file for this company. For your convenience, we have displayed 80 representative experiences in the PAYMENTS section.
PAYMENT DETAILS
Detailed payment history Date Reported (mm/yy) Paying Record High Credit ($) Now Owes ($) Past Due ($) Selling Terms Last Sale Within (months)
Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed.
Payment experiences reflect how bills are met in relation to the terms granted. In some instances payment beyond terms can be the result of disputes over merchandise, skipped invoices etc.
Each experience shown is from a separate supplier. Updated trade experiences replace those previously reported.
FINANCE
05/17/2002
Three-year statement comparative:
Dec 31 1998 Dec 31 1999 Dec 31 2000 Current Assets 5,735,650 6,022,432 6,383,778 Current Liab's 4,521,811 4,747,902 5,032,776 Current Ratio 1.26 1.27 1.27 Working Capital 1,213,839 1,274,530 1,351,002 Other Assets 2,623,143 2,754,300 2,920,416 Net Worth 2,838,982 2,980,930 3,160,644 Sales 17,685,297 18,569,562 19,683,736
Long Term Liab 998,000 1,047,900 1,110,774