Can you tell me how startups or small companies without a credit score manage their credit? Our company has never undergone a credit evaluation before, so we sometimes find it challenging when investors or external institutions request a credit score. Is it necessary to incur additional costs to check and obtain a credit score report, even if it means spending extra money? #corpfinance #finance #creditscore #startup
D+B like mentioned before. Also depending on the use case, some creditors may request financial statements, bank statements, and P+L reports. This is called manual underwriting, and is done on commercial and consumer loans when the credit score isn't enough (like self employed individuals).
Look up Dun&Bradstreet Business Credit report. Get a DUNS number for your business. A biz is like personal, without a decent credit history the business will need a guarantor, which is usually the founders giving personal guarantee. In this case they pull the personal credit of the owners/founders.