Wednesday, May 24, 2017

Trump's Business Credit Score Is 19 Out of a Possible 100

No surprise after all the revelation of his tendency to still people he owes money to.

By Christine Giordano Published October 20, 2016

Nav, a business score education organization, decided to run business credit scores for both The Trump Organization and the Clinton Foundation . The results might surprise you.

Similar to your personal credit scores Opens a New Window. , business credit scores and reports suggest a way to determine the credibility of a company by looking into how it has handled debts and obligations in the past.

“Suppliers, vendors and even business partners can look up your business’s credit score, anytime they want, without notifying you and without your permission,” Gerri Detweiler, head of Market Education for Nav, said.

Businesses leave an information trail when using credit, which is collected by business credit reporting agencies. A business credit score could be determined by the use of business credit cards, repaying equipment leases or business loan, or working with creditors that report business activity to credit reporting agencies, Detweiler said.


According to Nav, The Trump Organization, Inc.’s business credit score is a 19 out of 100 as of Sept. 23, 2016, which puts it below the national average score by more than 30 points. The Nav report said the score indicates the Trump Organization “is very likely to default on its credit payments” and that “this will make it difficult to get financing.” It puts Trump’s Organization in a “medium-to-high risk” category.


“Derogatory information, including a tax lien, judgement and collection accounts are affecting the Trump Organization’s credit scores,” Detweiler said. Derogatory information can include things like bankruptcies, but Trump’s bankruptcies did not show up on the report — most likely because they were old or for other businesses he is associated with, Detweiler said.

“Payment status is the most important factor when it comes to business credit scores, accounting for approximately 50% or more of the score,” Detweiler said. The Trump Organization’s payment history shows it pays an average of 26 days beyond terms (DBT), compared to the national average of 12 DBT.

Interestingly, the report also shows a tax lien, a judgement and three collection accounts, all of which ding the Trump Organization’s score, but the status of these is unclear.


According to Nav, the Clinton Foundation’s business credit score is a 42 out of 100 as of Sept. 23, 2016, which puts it below the national average score by about seven points. The Nav report said the score indicates the Foundation is “somewhat likely to default on its credit payments” and that “this could make it difficult to get financing and the terms may be unfavorable.” It puts the Clinton Foundation into a “medium-risk” category.

What works against the Clinton Foundation is that it is a relatively new organization and it is a foundation — its credit history only dates to 2013 and it has a relatively “thin file,” Detweiler said. Because it is a foundation, it may not use a lot of credit, so there may not be as many active trade lines as a regular business, she said. That’s because foundations are often funded through donor dollars. “According to the reports, the foundation has no derogatory information, low credit utilization, a mix of different accounts and a projected payment trend of zero days beyond terms,” Detweiler said.
[So as with personal credit, if you don't borrow money, you get a lower credit score. Crazy.]


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