Owing to high-end breaching tools and access to several data layers, credit professionals can attain financial data and credit reports via many high-value credit platforms and applications. If you are wondering how the process of automated credit reports works, this article can help you out, Brian C Jensen.
Here’s what you must know about commercial credit score reports, according to Brian C Jensen
What is an automated credit report?
Credit reports are the reflection of one’s credit standing. It evaluates the ones who are good enough to receive credit, thus, helps businesses and investors to ease their decision-making process of investing in a business. Automated credit reports assist a lender in verifying and validating someone’s credit score with the help of computational methods in a matter of minutes. The entire process considers the following factors:
➢ Credit risk & Delinquency and bankruptcy rates
➢ Loan performance & Ability to pay loans
The platform weighs in all the financial info and determines whether the loan can be approved or not. What would have been extremely difficult and time-consuming to do with still having scope for manual errors and miscalculations have become swift while being zero-error prone. Brian C Jensen says that faster computation allows a lender to arrive at financial decisions quickly. This leads to smooth business operations without any time delay or extra cost. The swiftness of the process also allows a lender to focus on other relevant decisions that might be more complex and require more time.
Benefits
As stated above, automated credit reports offer the following benefits:
● Consistency:
As technology reduces the human manual error to zero, there is the minimal scope of receiving inconsistent data. You don’t have to waste time repeating the entire process due to any spotted miscalculation. And assure consistency for all documents.
● Low cost:
Hiring specialized personnel to carry out the same process is always more expensive than employing technology for the same process. There are no time restrictions, so you don’t have to pay overtime. Additionally, you don’t have to worry about getting a facility for your professionals.
● Nimble process:
Technology is always faster. With the software ensuring every calculation within minutes, you can tabulate a bulk of information that is not possible in the case of manual labor.
● Accuracy:
As stated in the previous point, there are minimal chances of any calculation-based error with zero redundancy.
● Little to no paperwork:
Since you receive pre-calculated reports, you don’t have to invest any additional resources such as paper to store the data. You can download the report and keep it safe across any hard drive or storage device. Apart from saving up costs, this is also a more sustainable approach.
Reviewing a credit report is basically a kind of “soft inquiry” performed by a lender or an investor over a company looking to offer a lease, upgrade a financial contract, or extend a credit line to a business which can take a lot of time in itself. Opting for a swift systematized method helps you save up the time and effort manifolds that can unfurl many benefits for a business down the line.