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The business does. The individual doesn't. If that were the case, literally every business would be unlendable. Did you ever stop to wonder why commercial entit
by MeinBlutIstBlau 6y ago
The business does. The individual doesn't. If that were the case, literally every business would be unlendable. Did you ever stop to wonder why commercial entities don't have a credit system? Commercial loans are devised based off of the old fashioned way lending was done. Look at several years of your income and financial discrimination on your risk.
- toast0 6y ago> Did you ever stop to wonder why commercial entities don't have a credit system? Isn't that what Dun and Bradstreet is for smallish businesses and Fitch, Moody's and S&P do for businesses issuing bonds? Yes, not every business is in D&B, and it takes effort to get a record there, but it's not as if there isn't a commercial credit system, it's just not so engrained into everything like the consumer one.
- lotsofpulp 6y agoI don't know exactly what "credit system" means here, but the only difference I see is that certain types of lending are so low risk or low amount, that lenders find it possible to automate the job via the use of the credit reporting agencies, who (in the US) use social security numbers to summarize people's history of repaying debts. For any sufficiently large transaction, even for a person, such as a home mortgage, there will be manual review of people's incomes and assets, just like there is for businesses.