Annual Income Verification

[divareni]

When applying for business credit app how does the bank confirm what your annual income is on application or do they care if you have a great paydex, Experian busines and business credit profile?

[BRBiz]

Really no way to confirm the income of a company short of asking for financials. But based on industry, number of employees etc. they will have a general idea. Most companies could care less about the actual paydex score since most just pull the trade info and using their own scoring.

[Youngmogul86]

I have two questions similar in nature....


If a credit extending company wants a PG for a business account, do they look at the entire personal credit files as with consumer credit? ie, do they care that I have 15 inquiries on my personal file... Or are they just concerned with the scores and getting the guarantee.


Second, If a company submits tax paperwork, how does the receiving company verify the legitimacy of the tax return?

[BRBiz]

I have two questions similar in nature....

If a credit extending company wants a PG for a business account, do they look at the entire personal credit files as with consumer credit? ie, do they care that I have 15 inquiries on my personal file... Or are they just concerned with the scores and getting the guarantee.

Second, If a company submits tax paperwork, how does the receiving company verify the legitimacy of the tax return?

 

It depends on the creditor.. Some base the credit decision solely on your personal scores and in that case will follow similar guidelines as they would if it was a consumer product. While others factor both your personal and business credit and in that case they usually pull a blended report for biz and personal and a lot of factors come into play. Then you will have some they will want a PG but may not even pull your credit if you have good biz credit or just want to get a idea of your personal scores.

 

Submitting fake tax returns is fraud and the fact that you would be using fake federal forms changes the game even more. They have their ways of finding out if something doesn't make sense.

[Youngmogul86]

Submitting fake tax returns is fraud and the fact that you would be using fake federal forms changes the game even more. They have their ways of finding out if something doesn't make sense.

 

lmao, Well I know that! I'm actually coming at this from a lenders stand point... I'm interested in extending credit terms to customers for my products (financing will be underwritten in-house), and the question would be how I could verify their tax returns are legit as opposed to a filled in pdf, printed and faxed...

[BRBiz]

 

Submitting fake tax returns is fraud and the fact that you would be using fake federal forms changes the game even more. They have their ways of finding out if something doesn't make sense.

 

lmao, Well I know that! I'm actually coming at this from a lenders stand point... I'm interested in extending credit terms to customers for my products (financing will be underwritten in-house), and the question would be how I could verify their tax returns are legit as opposed to a filled in pdf, printed and faxed...

I guess you haven't heard of form 4506-T then!

[a305]

Young,

 

There are a lot of seasoned veterans here in this business credit game, obviously you don't have their experience, so I think it would be wise to be a little bit more humble in your quest for advice.

[BRBiz]

Depending upon how much your financing a bank reference may be another option.