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Credit information

Business credit report

A report describing a company’s credit-related information. Commercial reports, scoring methods, and correction processes differ from personal consumer reports.

Business operations

Cash flow

The movement of cash into and out of a business over a period. It differs from accounting profit because the timing of cash receipts and payments can differ from when revenue and expenses are recognized.

Agreement review

Collateral

Property used to secure an obligation. The documents identify the property, the rights involved, and the conditions under which those rights may be exercised.

Credit information

Credit report

A record of reported credit information. The report is the underlying information source, not the same thing as a credit score.

Credit information

Credit score

A model-based assessment using selected credit information. Scores can differ by model, data source, and when they are calculated.

Credit information

Credit utilization

The amount of revolving credit used relative to the available limits. Its impact depends on the scoring model and the broader information in the credit file.

Report accuracy

Dispute

A request to investigate information believed to be inaccurate or incomplete. It should identify the specific issue and explain the facts with appropriate supporting records.

Financing structures

Draw

An amount accessed under a credit facility. The facility agreement determines how it is requested and which conditions and obligations apply.

Identity and access

Fraud alert

A notice that asks creditors to take additional steps to verify identity. It differs from a security freeze and does not generally block access to the report.

Report accuracy

Furnisher

A company that supplies information to a reporting company, such as a creditor reporting an account. When information is inaccurate, the relevant furnisher is part of the dispute process.

Financing structures

Line of credit

A credit facility with conditions for accessing funds. Its agreement determines draw availability, repayment obligations, and whether repaid amounts can be reused.

Financing structures

Merchant cash advance

An arrangement generally structured as a purchase of future business receivables. The actual agreement describes the purchased receivables, collection mechanics, and the parties’ obligations.

Business operations

Operating outflows

Cash payments associated with running the business. A useful cash scenario separates these payments from the dates expenses are recorded and includes all relevant commitments.

Agreement review

Personal guarantee

A person’s contractual commitment to be responsible for specified business obligations. Its scope and enforceability depend on the document and applicable law. It deserves independent review.

Agreement review

Prepayment

Paying an obligation earlier than otherwise required. The agreement determines payoff calculations and any charges or conditions that continue to apply.

Identity and access

Prescreen opt-out

A choice concerning certain prescreened credit and insurance offers. It is separate from a security freeze or a factual reporting dispute.

Business operations

Receivables

Amounts a business is entitled to collect from customers or other parties. Receivables and cash already collected are different parts of the operating picture.

Financing structures

Reconciliation

A contract-specific process that may adjust receivables collections based on actual receipts. Its availability and operation depend on the agreement.

Identity and access

Security freeze

A restriction on access to a credit file for certain purposes. It can help protect against unauthorized new accounts. It does not correct report errors or erase accurate information.

Credit information

Specialty consumer report

A consumer report focused on a particular use, such as banking, tenant screening, employment, or insurance. A specialty provider may have no report about a particular individual.

Financing structures

Term loan

A lump-sum borrowing arrangement repaid under a loan agreement. Review the complete repayment obligation and conditions rather than relying on a product label.

Credit information

Trade payment experience

Information about how a business pays suppliers or other commercial accounts. Whether a payment relationship appears depends on what is reported to the relevant business-reporting provider.

Agreement review

Underwriting

The provider’s assessment of information relevant to a proposed transaction. Submitting an inquiry does not complete underwriting or establish an approval.

Business operations

Working capital

Resources involved in day-to-day operations. In accounting, net working capital is current assets minus current liabilities. That balance-sheet measure is different from a cash-flow projection.