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We are all familiar with Equifax, normally when we think of Equifax, the first thing that comes to mind is our personal credit reports. A service that they offer to Credit Card companies, Banks and other lenders to determine an individuals ability to obtain credit. What many people are unaware of is the ability to utilize Equifax as a resource when considering an investment in a small business. If you are considering an equity investment in a small business utilizing a crowdfunding website, an equifax small business credit report can be an invaluable service. The corporation that lists with a CrowdFunding website will likely have a credit history, no different then an individual looking to obtain credit, equifax gives you, the investor the opportunity to look in to the credit history of the company you are considering investing in with the crowd funding piece of your portfolio. The minimal cost involved in obtaining a small business credit report, prior to purchasing a piece of a company is a very worthwhile investment.
We firmly believe that utilizing Equifax prior to your crowd fund investment would be a very wise choice.
Also a smart choice to review your companies Equifax report prior to issuing equity through crowdfunding. Credit reporting is not infallible, you would not want your crowdfunding efforts to fail due to a mistake on your small business credit report. Equifax can help you have these issues corrected prior to offering equity to the crowd.
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I believe any individual who is interested in partnering and funding a start-up must also utilize a site like Equifax. It makes entirely no sense to invest in a company without knowing if the company is reputable. Crowd funding websites do their best to offer you attractive start-ups, but it truly is up to the individual to get a thorough history before money changes hands. Equifax is easy to use, and they offer not only a business credit score, but also the likelihood that the business will fail, and more.
The great thing about getting a small business credit report from Equifax is that it is a ubiquitous name. There’s a sense of trust and legitimacy that’s associated with the name and by having a credit report from them attached to your crowd funding campaign, it gives your business a sense of trust and legitimacy just by relation. This is a worthy investment for anyone hoping to use crowd funding.
rparkerNo it is not.. This is what I got from Equifax when I asked them.Both the Equifax Credit Score and the FICO Score are general-purpose score moleds used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a proprietary model created by Fair Isaac Corporation (FICO) . All Equifax consumer services and tools make use of the Equifax Credit Score unless otherwise indicated. The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk.The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which can be useful in understanding your credit.Though both score moleds predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different moleds calculate riskMine was 23 points higher on Equifax then at my FI