The PayNet Credit History Report (CHR) puts the comprehensive PayNet database to work for member lenders by providing borrower profiles for use during the application review process. Information is summarized in multiple ways to facilitate a thorough review of the borrower's credit quality at a glance while still containing the individual contract detail for more in depth analysis.

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Details

Basic borrower information, such as name, address, phone number, SIC Codes and Primary Equipment, form the backbone of the CHR. High level summary information of all obligations for a given borrower within the PayNet database is presented in a concise table outlining how the borrower has historically handled its obligations (such as number of times paid as agreed vs. 31-60, etc.) as well as the aggregate amount owed and how much of that amount has been paid down.

Payment histories on each individual obligation are presented on a contract by contract basis, with line numbers, and summarized by each lender with which the borrower has done business. This information provides unprecedented detail for each business borrower and affords a lender the opportunity to see how the borrower has handled similar transactions. The detailed information that facilitates this apples-to-apples comparison includes such items as collateral type, financing product, guarantor indicator, term and payment frequency, repayment status and levels of historical and current delinquency.

The CHR provides a detailed listing of what entities, if more than one, have been matched together using the PayNet Match Plus process that strives to combine borrowers together that may not be combined by other providers due to small variations in the borrower name. The borrower name, address, phone, and last four digits of the Tax ID are listed, with corresponding line numbers of the contracts that are associated with the entity, which may signal additional relationships previously unknown to the lender.

Access to the CHR can be handled via two web-based methods, PayNet On-Line® or the low cost, high volume PayNet Direct® solution.

Benefits

Key Benefits with PayNet Credit History Report Include:

  • PayNet’s term debt payment history provides a better indicator of credit quality and capacity versus net 30 trade data
  • Comprehensive compilation of borrower performance on obligations within the entire PayNet database
  • Enables better-informed lending and portfolio management decisions
  • Reduce the cost and increase the efficiency of access to small-business credit data

Solutions

PayNet Credit History Report Solutions

The Challenge

Our Solution
  • Limited breadth of data available with existing legacy systems
  • Uniformly aggregated contract-level data from PayNet's proprietary commercial debt database
  • Depiction of borrower repayment habits constrained to lender's historical experience with the borrower
  • Actionable external data augments internal lender experience and provides visibility into borrower repayment characteristics with other lenders
  • Timely review and processing of credit applications critical to competitiveness
  • Real-time access to comprehensive borrower company and payment details
  • Identification of, and access, to predictive data to promote optimal credit-decisioning
  • PayNet's term debt payment history provides a better indicator of credit quality and capacity versus net 30 trade data
  • Multiple sources for pertinent background information
  • Optionally available public records consolidated into borrower profiles

+Business Background

Add Value to your CHR with Business Background

Business Background information is an inexpensive and valuable addition to the CHR which provides unique insight into the borrower that may not have been known as part of the normal course of business.

Where available, Business Background data includes structural information – is the business a partnership or LLC, the name of Senior Management, the year the business was started, annual sales and number of employees, as examples. This information can be used in many ways as part of the due diligence process. For instance, the Location Type for the borrower that is being evaluated may show “Branch” which would signal an analyst to drill a little deeper into the structure of the borrower’s organization.

Another Business Background item is the Metropolitan Statistical Area in which the business operates. This information is key to obtaining additional information about the borrower such as local market size (depending on the borrower’s business) and population demographics that can be used when preparing transaction or borrower reviews with Senior Management.

The Business Background data is delivered as an add-on to the CHR information. No additional selections or processes are required to receive this information making the addition of this data seamless to the organization.

+Legal Name

PayNet has gathered registered name information on companies from individual Secretary of State offices across the nation, including the District of Columbia.

Researching the exact legal name of the borrower is critical while completing the underwriting process, but even more so when it comes to contract documentation. Incorrect documentation of borrower company names costs lenders tens of millions of dollars each year through litigation disputing the name of the borrower as well as unperfected lien (UCC) filings which put the lender’s collateral position in jeopardy. Searching each Secretary of State website can be time consuming and inefficient.

Legal Name is delivered as an add-on to the CHR information. No additional selections or processes are required to receive this information making the addition of this data seamless to the organization.