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Small Business IntelliscoreSM

Evaluate the creditworthiness of a small business with greater speed and accuracy

Gain insight into credit risks associated with a business and its proprietors

in a single score.

Improve bottom-line performance Knowledge is power. In an era when

business proprietors often leverage

personal assets to meet business

obligations, combining the proprietor’s

personal credit with a small business’s

commercial credit information is not

only permissible under the Fair Credit

Reporting Act — it’s an essential

business credit practice.

Studies have shown that blending

both business and personal credit

performance is significantly more

predictive of small-business credit risk

than using either a commercial or

a consumer risk model alone.

In order to provide greater predictive

power and improve bottom-line

performance, Experian’s Small Business

IntelliscoreSM has been refined using

advanced statistical techniques and new

data variables to score more records

than ever before, with unparalleled

accuracy.

The result is a precision tool that utilizes

key risk variables, such as recent credit

inquiries, new account activity, key

financial ratios, credit line information

and performance indicators, to make

managing small-business credit risk

easier than ever.

An effective alternative to traditional bureau scoresTraditional bureau scores provide you

with only a fraction of the information

you need to make an informed decision.

Small Business Intelliscore is the product

of the combined efforts of Experian’s

Business Information Solutions group

and Experian-Scorex, one of the world’s

foremost decision-support companies.

The result is a powerful new decisioning

tool that allows you to more effectively

acquire, retain and manage small-

business accounts.

Sample Small Business Intelliscore report from Experian1 Company information Key information, including business

name, address, phone number, Experian BIN and years-on- file date with Experian.

2 Full report number Need additional details? Use the

full report number within 72 hours to receive a full report containing the Small Business Intelliscore, Business Profile Report and Business Owner Profile at a reduced rate.

3 Proprietor information Name and address associated with

the proprietor of the business. Report may list up to two proprietors.

4 Small Business Intelliscore A statistically based credit risk score

that combines business and proprietor credit data to predict the likelihood of serious delinquency in the next 12 months. Scores range from 0 to 100, where lower scores indicate higher risk.

5 IntelliscoreSM action Provides default risk assessment

message or may be customized to display your own policy message based on the score range.

6 Key Intelliscore factors Indicates the factors that are most

influential in the Small Business Intelliscore. These factors may be positive or negative.

7 Derogatory filings Legal filings and collections that may

impact the business’s performance, including the date range of the filings.

8 Trade experiences Summarizes the number of trade

experiences, trade performance and amount of credit extended.

9 Scorex PLUSSM score A statistically based consumer credit

risk score that predicts the likelihood of serious delinquency in the next 24 months. Scores range from 300 to 900, where lower scores indicate higher risk.

10 Key Scorex PLUS score factors Indicates the negative factors that

are most influential in calculating the Scorex PLUS score.

11 Proprietor credit risk information Summary of the proprietor’s consumer

credit performance, including credit performance, trades, balances and adverse actions.

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Using consumer credit information for business purposesAccording to the Federal Trade Commission, the

federal Fair Credit Reporting Act applies when

a consumer credit reporting agency, such as

Experian, furnishes information from its database

on an individual business proprietor. The Fair

Credit Reporting Act permits Experian to furnish

such information to a person Experian has reason

to believe (1) intends to use the information in

conjunction with a credit transaction involving

the consumer on whom the information is to be

furnished and/or involving the extension of credit

to, review of, or collection of an account of the

consumer or (2) otherwise has a permissible

purpose under the Fair Credit Reporting Act.

Consistent with the Federal Trade Commission’s

position, you may obtain a Small Business

Intelliscore report on the following:

• The owner of an unincorporated business

• General partners in a partnership

• Individuals who have guaranteed, in writing,

the business obligation

• Individuals who have provided you with

written authorization approving your review

of their personal credit history

Use limitationsGenerally, you may not obtain a Small Business

Intelliscore report unless you have a permissible

purpose under the Fair Credit Reporting Act.

Specifically, except as outlined previously, you

may not obtain a Small Business Intelliscore

report in the following circumstances:

• On an employee of a company you

are researching

• On yourself, your coworkers, friends,

family or acquaintances for personal,

family or household purposes

• When a consumer statement appears on a

credit record, Experian® is required to return a

full Business Owner Profile report in addition

to a Small Business Intelliscore report.

You do not need to obtain the consent of the

business proprietor before obtaining a Small

Business Intelliscore report as long as you are

ordering the report for a “permissible purpose.”

However, obtaining written authorization from

the principal (and providing evidence of such

to Experian) is itself a permissible purpose for

ordering a Small Business Intelliscore report.

Adverse action — notification of principalAs noted, it is the position of the Federal Trade

Commission that information drawn from a

consumer report file retains its character as a

consumer report, even if furnished in connection

with a commercial credit transaction. Therefore,

credit grantors should provide notice to the

applicant when the information contained in

the Small Business Intelliscore was a factor in a

commercial credit declination. The Fair Credit

Reporting Act contains specific requirements,

identified in Section 615, that must be

communicated when adverse action results from

your use of a Small Business Intelliscore report.

Often credit grantors turn to their consumer

loan departments for assistance. In addition,

notice obligations may exist under the Equal

Credit Opportunity Act and Regulation B. Credit

grantors should consult their legal counsel with

respect to all required notices.

Inquiry identificationSmall Business Intelliscore inquiries will appear

on the individual’s consumer credit report and

will include your business name and address.

Experian identifies its Small Business Intelliscore

inquiries as business inquiries so that consumer

credit grantors can separate a subject’s business

credit activity from the subject’s consumer

credit activity.

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4377B-0807 CS

www.experian.com

To find out more about Small Business

Intelliscore, contact your local Experian

sales representative or call

800 520 1221.

475 Anton Blvd.

Costa Mesa, CA 92626

800 520 1221

© Experian Information Solutions, Inc. 2007

All rights reserved

8130/1922 08/07

Experian and the marks used herein are service marks or

registered trademarks of Experian Information Solutions, Inc.

Other product and company names mentioned herein may be

the trademarks of their respective owners.