A financial adviser can help you understand how your company is performing on the credit rating agencies’ credit rating scales, but she can also help you make decisions about how your business is structured, according to a survey by the Australian Financial Advice Council.
A survey of more than 800 Australians revealed the average Australian business had a rating score of just 6.9, according the council’s latest survey.
This is the lowest score for a major Australian firm.
The report also revealed the majority of Australians had little or no understanding of how to use credit reports, how to calculate their credit rating, and how to make decisions on whether to invest in a business or invest in your future.
Here are five things you should know before deciding if you want to get a financial adviser.
Your company is not a credit score company.
“A credit score is not your rating agency, and it’s not a tool to tell you if you’re making a good financial decision,” said Rebecca Linn, a partner at the law firm Jones Day, which specialises in credit and credit-rating agencies.
“It’s not about whether your business qualifies or not.”
Ms Linn said credit scores were used by credit rating companies to help clients make decisions.
“The agencies know who’s making the decisions about your creditworthiness and whether you’re getting the best value for your money,” she said.
“That’s why they do a credit rating.”
However, Ms Linkin said the majority people who get financial advice were not the ones who have a financial problem, but the people who have high credit scores.
“They are the ones that can use it as an excuse not to invest,” she told ABC News.
“This is a tool that is used for bad financial decisions and it is used by bad people.”
You don’t have to pay a financial advisor.
“We can’t tell you how to do it, because the only advice we can give is to look at the data,” Ms Lincin said.
While the Australian Business Credit Score was developed to assess companies’ creditworthiness, it has nothing to do with how they score on credit reports.
Ms Lintin said credit score companies used data collected by the Bureau of Statistics to rank companies on a scale of 0 to 100, and this could include a score from one to 100.
Credit scores are only used to assess the performance of businesses, and not whether they are doing well.
Credit score companies do not review whether the company is in good financial health.
Your business may be rated by multiple rating agencies.
According to the latest Australian Business Research Institute (ABI) report, of the more than 5 million companies that are rated by different rating agencies, only 2 per cent had been rated by one of the major credit agencies.
The ABI report said the major rating agencies were the credit reporting agencies, and that these agencies had not had time to review a wide range of other factors.
A number of factors are also taken into account in the rating of a company.
These include the size and complexity of the business, the quality of its assets, its location, the level of financial risk, and whether the business has an overall financial profile.
The review is made by a committee, which includes a consultant and a representative from the business.
In Australia, companies are rated on a three-point scale: 1.
The third and final factor is the ABI rating, which is based on the AABS rating scheme.
The company’s AABP is also used by the rating agencies and other organisations to determine whether the firm is a good candidate for a loan or a loan guarantee.
A financial advisor may not be able to help you.
“An adviser is not allowed to recommend or provide advice about credit, but it may give you information on the risk of a loan, how much you can borrow, and what credit ratings you should seek,” Ms Lin said.
Ms Lin also noted the AIB survey showed that most Australians who had financial advisers were not interested in having one.
“Many of those advisers may have little or zero knowledge of the financial sector, and they may have been trained in another sector,” she added.
Ms Lee said financial advisers are often hired by clients to make recommendations on financial matters, but this is not always the case.
“If you’re interested in the advice of an adviser, and you’re not aware of the requirements, you should contact a financial professional,” she advised.
Your credit score may not accurately reflect your business.
“While we can’t be responsible for the accuracy of any credit scores, we can help customers better understand their own credit risks and financial situations,” Ms Lee told ABC Radio National.
“In particular, we have developed a credit scoring tool to help customers assess their own risk and potential for credit losses.
We’ve also developed tools to help businesses manage their credit risks, such as credit scoring and financial monitoring tools.” This means