Sunday, October 20, 2019
FICO Scores for Clients
FICO Scores for Clients Adding insult to injury, is a tough economy, where collections of all kinds have become problematic. Which is why businesses are doing their Ã¢â¬Å"due diligenceÃ¢â¬ to make sure that customers have a history of timely payments, and that they are in good financial health before signing on the dotted line.Ã This is determined What is a FICO score? Its simply a 3-digit number that reflects your credit-worthiness. Think of it as being like a grading system. And we all have one, if weve financed a purchase like a house or a car, or a big ticket item. This score takes into account your history with lenders, what types of credit you have had, and how long youve had a credit history. The score ranges from 300-850.Ã As business owners, freelancers should follow suit and apply a similar type of screening to assess potential clients. Why? Because late and missed payments can impact our quality of life, cause undue hardship, and make it difficult to provide for our families.Ã And though you canÃ¢â¬â¢t obtain their credit information per se, there are ways for you to easily research and analyze the backgrounds of potential clients to detect red flags and assess the likelihood of future pay and profitability.Ã FICO SCORING FOR FREELANCE CLIENTS AND PROJECTSÃ FFeedback. When you perform a Google Search on the individual or compan y, do you see any complaints? Are Blog comments typically positive? How about reviews through Amazon or consumer websites? Be wary if thereÃ¢â¬â¢s a lot of negative press or shady activities reported. Ã IImage. Is their branding smart and savvy? Is their marketing message clear and effective? Would you Ã¢â¬Å"buy intoÃ¢â¬ what theyÃ¢â¬â¢re selling? Does the company have a blog? Is it updated regularly with quality posts? What are the analytics at their site? Do they get a lot of visitors? To check and assess visit ALEXA.COM for details. Alexa is a website that provides stats on sites traffic, demographics, and success metrics.Ã This is something to consider in your evaluation process.Ã CContinuity. How long has the individual or business been in operation? Has it been under the same structure and affiliation? Or have they been in and out of different projects and pursuits under different names or titles? The point here is that you donÃ¢â¬â¢t want to be affiliated with a Ã¢â¬Å"fly YouÃ¢â¬â¢ve worked hard to land work. But, if you canÃ¢â¬â¢t collect what youÃ¢â¬â¢ve earned, youÃ¢â¬â¢ve toiled in vain.Ã Though thereÃ¢â¬â¢s always a degree of risk when applying to freelance positions, you can protect yourself Remember, ignoring red flags could ultimately keep your business in the red.