DUBAI: Al Etihad Credit Bureau on Wednesday said it has began issuing commercial credit scores to businesses in the UAE.
The three digit scores — ranging from 300 to 900 — determine the creditworthiness and risks of default of a company. It is calculated using information from various sources, like banks, finance companies and telecom companies. The higher the score, the lower the risk of default.
“The launch of the Commercial Credit Score will help banks and other commercial lenders to assess the risk from the time of application throughout the entire lending relationship,” Marwan Ahmad Lutfi, chief executive of Al Etihad Credit Bureau said in a statement.
Companies can obtain their credit scores by visiting the bureau’s customer service centers in Abu Dhabi and Dubai, and presenting documents such as the original Emirates ID of company’s owner or the company’s authorized signatory, original trade license, the original articles of association of the company and a valid e-mail address.
A standard commercial report — with no score — costs Dh180, while a report with a score costs Dh220. A credit report for an individual or establishment without a score costs Dh100 while it costs an additional Dh50 to get one with a score. A credit score only, with no report, costs Dh60.
According to international best practices, a good commercial credit score assists small and medium enterprises in accessing the credit market because the analytic and predictive score indicates the likelihood of future default and the effectiveness of current management, the bureau said.
Al Etihad Credit Bureau starts issuing commercial credit scores to UAE businesses
Al Etihad Credit Bureau starts issuing commercial credit scores to UAE businesses
