An Insider’s Look At Credit

The Impact of Today’s Economy on Approvability
An Insider’s Look at Credit
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Welcome!
Scott Rowland has been in the Training & Organizational Development function for nearly 20 years, most of which has been in the banking and finance industry.
Beyond the development of internal employees and a corporate university, Mr. Rowland has specialized in training seminars and workshops for external clients, providing resources and tips to help grow their businesses to be successful partners.

The Problem
Reduced qualification
92% vs. 60%
Reduced lines
Tighter guidelines
660 vs. 720
 A rate improvement of only 2% can save over $500 annually on a $50,000 business loan.

The Solution
Awareness
Understand how credit works
Building
Develop a strategy
Checking
Monitor your approvability
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B
C

Approvability Factors
FICO™ Score
MDS Score
Time in Business
Public Records
Utilization
Comparable Credit
PayDex™

The Role of FICO™
What is FICO™?
Why it is important?
What about other scoring models?
 The national average FICO score is currently 678, and the median score is 723.

The Role of the Credit Bureaus
CRAs versus Resellers
Differences among CRAs
Challenge #1: Reporting Errors
Business Personal

FICO Calculation
Weighting Categories

FICO Calculation
Weighting Categories
Scorecards

FICO Calculation

Old
New
Home Equity/Savings
Friends & Family
Bank Loan/LOC
Savings
Friends & Family
Short-Term financing
Merchant Cash Advance
Factoring
Showroom Financing
Short-Term Loans
SBA/ARC Loans
LOC
Financing Strategy

Monitoring Approvability
Manage exposure
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Know your best time to strike

AboutDIRECTCAPITAL®
Founded in 1993 in Portsmouth, NH.
Direct Capital’s mission is to provide simple, fast, and cost effective solutions to help businesses acquire the financing they need to succeed.
We strive to maintain a position as the finance company of choice for businesses across the United States by bringing unmatchable rates, service and value to the clients we work with.
Want to sign up for the next webinar? Check out our blog:
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An Insider’s Look At Credit

by Direct Capital on Aug 18, 2009

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An Insider’s Look At Credit — Presentation Transcript