Sunday 24 July 2016

Common Myths about Background Checks Busted

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Organizations are increasingly becoming selective regarding hiring decisions. Most employers tend to check all significant aspects before hiring candidates. This is particularly important as organizations are liable for the actions of their employees. In order to safeguard their interests, most employers conduct background screening on the prospective employees. Candidates often harbor many false notions about the procedure which may have a negative impact on their confidence levels. It is hence important to understand the process and consequences of background checks. Few aspects in this regard include:

Criminal records

Most organizations are legally empowered to enquire into the criminal history of the employee. However, it is important to note that most employers take into consideration the convictions an employee may have faced. This is an important point to remember during Background and Credit Check. An arrest which has not resulted in conviction usually does not impact the employment prospects of the candidate. Similarly, if a conviction is not related to the job applied for, it may not negatively impact the employment prospects of a candidate. This busts the common myth that a criminal background may make a candidate unsuitable for employment.

Past employment verifications

It is a common myth that during past employment verifications, employers tend to criticize the employees. In reality, past employment verifications deal with basic aspects like eligibility for employment, salary, job title and date of employment. Employers generally avoid sharing personal opinions about past employees.

Credit checks 
 
Credit Report Employee generally does not negatively impact the credit score as is commonly believed by most people. The purpose of conducting an employee’s credit check is to gauge his credibility and past records of any frauds or theft. If a prospective employee has a high amount of outstanding debt, he may be considered unsuitable for handling cash in the organization due to the risk of him resorting to fraud and theft. However, the credit score of the candidate remains unaffected due to the credit report generated by the employers.

If a candidate has been denied employment due to revelations in the background check report, the organization generally issues a letter stating the reason of denial of employment. This helps to protect the rights of the candidate.

Thursday 7 July 2016

The Importance of Establishing and Maintaining Business Credit Reports

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Many business owners are aware about the importance of business credit reports. A credit report is essential as it can facilitate the functioning and financial operations of a business.
Business credit reports
A Business Credit Report possesses similarity to a personal credit report. It reveals the credit worthiness and financial capability of the business. It focuses on aspects like the background information of the company, types of credit availed by the business, the payment history of the business, time of credit establishment, type of business and various other financial aspects of the business. The report provides an insight into the position and credit dealings of the business.
A credit report is essential for applying for credit cards, loans or for opening a new account. Lenders evaluate the credit report of the business prior to granting approvals for loan or new account applications. It is hence important for entrepreneurs seeking a loan to furnish and maintain their business credit reports.
Establishing and maintaining business credit reports can facilitate growth of the business. A growing business may require funds for expansion and improvement of the business. Maintaining the credit report ensures that the business gains access to funds for various growth and expansion activities. A poor credit report can risk the chances of the business of securing funds at low interest rates.
Establishing a credit report
Various types of Business Credit Check Services providers can help businesses establish credit reports. After establishing a credit report, it is advisable for businesses to obtain secured business credit cards. These cards can facilitate businesses with in getting loans easily and quickly. Secured business purpose credit cards are issued only after evaluation of the credit report.
The secured business credit cards can be used for making payments related to various kinds of business expenses. Business owners however must exercise caution to stay within the credit card limit and ensure that payments are made on time. Regular payments can improve the credit score of the business. The improved credit score is reflected in the credit report and can ensure the eligibility of the business for securing loans and finances.