You may or may not have heard of business data agencies. The business credit bureaus are fairly well known. But business data agencies? Not so much.
What is LexisNexis?
Per their site, LexisNexis is:
“[f]or companies and government agencies seeking data analytics supporting compliance, customer acquisition, fraud detection, health outcomes, identity solutions, investigation, receivables management, risk decisioning and workflow optimization.”
What is Lexis?
Initially, the company started off as just Lexis, which provided analysis and information to legal customers….
“[f]or law firms, corporations, government agencies and academic institutions seeking legal solutions, news & business insights.”
The Legal Application
For the legal community, Lexis still provides data to help them with their clients. It also contains much of the most recent law and legal decisions. A law firm which started off with dozens of heavy books—which a paralegal would have to update for each partner every year—can now just use Lexis.
On the LexisNexis side, the change is just about as dramatic.
What Sort of Business Information Do Business Data Agencies Like LexisNexis Have?
The value of this data is in understanding risk.
For any business looking to protect its assets, it’s vital to review information on other businesses seeking to do business with them. It helps to look at info on customers as well.
They offer a ton of information from their database. This includes access to data on bankruptcies and lawsuits. There is some data from the regulatory arena, such as if you have a gun license.
The Relationship Between Personal and Business Credit
Personal credit history does affect business credit. In fact, it’s a part of how FICO SBSS and Experian do their scoring. Professionals looking for inside information often turn to leading global provider of data, LexisNexis.
Their advanced technology helps professionals better assess clients, employees, potential partnership solutions, and more.
Artificial intelligence from LexisNexis helps businesses make informed decisions when determining whether to extend credit to another business. For small businesses looking to accept (for example) Net 30 terms, it’s vital to know if the other company will pay on time.
Professional solutions from LexisNexis can help prevent professionals from making costly mistakes when purchasing goods and services—and hiring and extending credit, too.
But LexisNexis is not the only business data agency out there.
If you’ve ever had problems opening a bank account, ChexSystems may be the reason why.
ChexSystems is a nationwide specialty consumer reporting agency under the federal Fair Credit Reporting Act (FCRA). Their clients regularly contribute information on closed checking and savings accounts.
How ChexSystems Works
ChexSystems’ services primarily assist its clients when assessing the risk of opening new accounts.
Banking professionals use solutions from ChexSystems when determining if a potential client will overdraw or commit check fraud, too.
FICO Small Business Scoring Service℠ helps lenders and credit issuers with assessing the risk of US small business credit applicants.
How FICO Works
SBSS is delivered via the FICO® LiquidCredit® Service infrastructure and brings the speed of consumer lending to small business lending decisions. With SBSS, lenders can make decisions more quickly. In turn, this helps a lender or credit issuer attract more small business professionals.
How Information from Business Data Agencies is Used in Small Business Lending Decisions
Banks offering term loans and other services want to be sure a business will make their payments on time. Information from business data providers can assist a lending organization will determining if a business will be good to work with.
But beyond checking professionals’ sites or social media, lenders want objective solutions directly focused on whether a business has a history of paying its bills on time. So, business data solutions are designed to help with this.
Credit issuers also like this data and may use it to better assess potential clientele.
Firstly, credit and lending professionals need objective, easy to use solutions for determining if a prospective borrower will pay them back. And secondly, employers need to know if prospective employees can be trusted, too. Both look to business data agencies like FICO SBSS for accurate and relevant information.
To help you with lenders and vendors—and give them more reasons to want to work with you, call us today.
The post How Does the Work of Business Data Agencies Like LexisNexis Help Small Businesses? appeared first on Credit Suite.