Business credit agency provide information about businesses, including sole proprietorships, partnerships, and corporations, and obtain information through public sources, direct surveys, and payment histories provided by suppliers and trade creditors. The enterprises covered by enterprise credit bureaus are smaller in size and operating income than those covered by credit rating agencies, and the information collected by them is generally used for credit risk assessment or credit scoring, or for other purposes such as trade credit extension.
The differences between enterprise credit bureaus and individual credit bureaus are reflected in the following aspects: The information collected by enterprise credit bureaus does not include sensitive personal information, and the scale of transactions covered by enterprise credit bureaus is much larger. Compared with personal credit investigation, corporate credit investigation often needs to collect more payment information and financial information about corporate borrowers. In order to protect the rights of personal data subjects, individual credit bureaus disclose the identity of data providers, but corporate credit bureaus do not let corporate data subjects know the identity of their data sources or users.
Corporate credit bureaus may also collect information from small businesses, but because the data items they report are not suitable for small businesses, the information collected is often limited. As mentioned earlier, since small businesses tend not to disclose their financial information, the credit history of their owners can be very useful in assessing the credit of a small business. But corporate credit bureaus do not collect personal data. In addition, the cost of collecting credit information is often higher for micro or small enterprises. Therefore, compared with enterprise credit agencies, personal credit agencies are often better able to meet the credit needs of micro and small and medium-sized enterprises.
In addition to the above credit bureaus, in reality, many credit bureaus in developing countries are based on the European model, and in the development process, they are inclined to the American model, showing the characteristics of a mixed model.
The construction and operation of the international credit investigation system are more and more diversified, especially the characteristics of market-oriented operation. It is difficult to say whether a credit investigation institution is public or purely commercial. The nature of institutions is not just two extremes, even if the government-funded projects or investment institutions, many are also market-based operations to varying degrees. At present, credit investigation institutions in emerging market economies, especially in Asia, use the power of the market to build and operate public credit investigation systems, and charge for services provided to financial institutions and society to achieve sustainable development of credit investigation institutions.
Post time: Feb-01-2024