Topic 23, Exercise 2Small Business Credit ManagementIt is important for small businesses, many of which are associated with the principal owner, to manage it credit rating. This is also true for students who are in the process of establishing a credit rating or who are planning to finance a car or home in the near future. Fair, Isaac & Co. have developed a credit scoring system, which provides everyone with a FICO score (Fair Isaac CO) between 350 and 900. In “Your Credit: What's in a Number," BusinessWeek, February 8, 2001, http://www.businessweek.com/smallbiz/content/feb2001/sb2001028_877.htmreview the important factors that determine your or the small business owner's credit score and answer the following questions.1. What are the major factors that will likely influence your FICO score?Credit granting suppliers and lenders are seeking information that will best predict successful payment practices in the future. While the actual model that determines Fair, Isaac & Co.'s FICO score has not been disclosed, the author has enough experience to
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