Paying business bills as agreed will net a positive credit scores with D&B, Equifax, and Experian
Your personal credit can be blended into the FICO SBSS and Experian Intelliscore Plus
Having a good Bank Rating is mostly about keeping an average of $10,000 in your bank account over the last 90 days
Do you know how your business credit scores are calculated? Learn more here and get started toward understanding and raising your business credit scores so you can get funding for your business.
Your business has its own credit profile and score linked to your business EIN number.
3 main business reporting agencies provide your business credit profile and score Dun & Bradstreet, Experian, and Equifax Commercial.
A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months, while consumer scores depict risk over a 24 month time frame.
The document provides an overview of credit and collections management (CCM) and outlines 17 things organizations should be doing to reduce outstanding accounts receivable. It discusses the importance of creating a credit management plan, providing accurate and timely customer information, developing key performance indicators (KPIs) to measure progress, and clearly defining the roles and responsibilities of credit and collections staff. The document emphasizes that formalizing business processes through a credit plan and use of a CCM system can help organizations improve metrics like days sales outstanding, bad debt levels, and cash flow.
Financial Statement Analysis - Reading the Numbers Correctly, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
FinTech Belgium - MeetUp on Digitalisation of Accounting - Edouard Beauvois -...FinTech Belgium
This document discusses using artificial intelligence to optimize working capital through analyzing customer payment data. It provides an example of how AI can identify early if a customer may have future payment issues based on trends in their days to payment and late payment history over several years. The document also shows how AI can segment a company's debt portfolio into risk levels, compare their days to payment metrics to industry averages, and provide a detailed analysis of individual high-risk customers. The value of AI for this use case is described as helping companies better understand their customers' payment behaviors to anticipate issues, reduce bad debts, improve cash forecasts, and automate customer-specific processes.
SAP Credit Management provides integrated credit risk management capabilities including credit scoring, credit checking, credit limit management, and workflow. It calculates customer credit scores and credit limits using configurable rules and formulas. It integrates with external credit bureaus and allows real-time credit checks. The system supports credit limit requests, approvals, and tracking credit events through a workflow. Credit data can be captured at the business partner level and includes financial information, credit segments, relationships and document attachments.
The Credit Process: A Guide For Small Business OwnersAli Mohammed
This Power Point is talking about The Credit Process as guide for Small Business Owners containing
=Methodology
=Major deliverables
=5 C’s of Credit
=Credit Risk Management
=Management Approvals
=Future work processes
=Future Procedures Overview
=Information system support
=Functions of Credit Control Group & Marketing Division
=Way forward
The document provides an overview of credit and collections topics, including the five Cs of credit, the credit department and its responsibilities, credit policies, credit investigations, credit fraud, credit decisions, customer visits, the relationship between sales and credit, and bankruptcy proceedings. It was presented by David Osburn, founder and managing member of a business training and contract CFO firm, who has over 25 years of experience in banking, finance, and marketing.
Do you know how your business credit scores are calculated? Learn more here and get started toward understanding and raising your business credit scores so you can get funding for your business.
Your business has its own credit profile and score linked to your business EIN number.
3 main business reporting agencies provide your business credit profile and score Dun & Bradstreet, Experian, and Equifax Commercial.
A business credit score is a mathematical model that is used to depict a business’s risk of going 90 days late on an account within the next 12 months, while consumer scores depict risk over a 24 month time frame.
The document provides an overview of credit and collections management (CCM) and outlines 17 things organizations should be doing to reduce outstanding accounts receivable. It discusses the importance of creating a credit management plan, providing accurate and timely customer information, developing key performance indicators (KPIs) to measure progress, and clearly defining the roles and responsibilities of credit and collections staff. The document emphasizes that formalizing business processes through a credit plan and use of a CCM system can help organizations improve metrics like days sales outstanding, bad debt levels, and cash flow.
Financial Statement Analysis - Reading the Numbers Correctly, 2014 CreditScape, Western Region Credit Conference Seminar Slide Deck, sponsored by Credit Management Association. More information: www.creditmanagementassociation.org
FinTech Belgium - MeetUp on Digitalisation of Accounting - Edouard Beauvois -...FinTech Belgium
This document discusses using artificial intelligence to optimize working capital through analyzing customer payment data. It provides an example of how AI can identify early if a customer may have future payment issues based on trends in their days to payment and late payment history over several years. The document also shows how AI can segment a company's debt portfolio into risk levels, compare their days to payment metrics to industry averages, and provide a detailed analysis of individual high-risk customers. The value of AI for this use case is described as helping companies better understand their customers' payment behaviors to anticipate issues, reduce bad debts, improve cash forecasts, and automate customer-specific processes.
SAP Credit Management provides integrated credit risk management capabilities including credit scoring, credit checking, credit limit management, and workflow. It calculates customer credit scores and credit limits using configurable rules and formulas. It integrates with external credit bureaus and allows real-time credit checks. The system supports credit limit requests, approvals, and tracking credit events through a workflow. Credit data can be captured at the business partner level and includes financial information, credit segments, relationships and document attachments.
The Credit Process: A Guide For Small Business OwnersAli Mohammed
This Power Point is talking about The Credit Process as guide for Small Business Owners containing
=Methodology
=Major deliverables
=5 C’s of Credit
=Credit Risk Management
=Management Approvals
=Future work processes
=Future Procedures Overview
=Information system support
=Functions of Credit Control Group & Marketing Division
=Way forward
The document provides an overview of credit and collections topics, including the five Cs of credit, the credit department and its responsibilities, credit policies, credit investigations, credit fraud, credit decisions, customer visits, the relationship between sales and credit, and bankruptcy proceedings. It was presented by David Osburn, founder and managing member of a business training and contract CFO firm, who has over 25 years of experience in banking, finance, and marketing.
This document provides an overview of various types of bank financing options for small businesses, including lines of credit, term loans, SBA loans, commercial real estate loans, and equipment financing. It also discusses how to improve credit scores and the requirements for applying for business and residential loans. The presentation was given by Anna Xiaodan Zheng from Chase Business Banking to discuss financing options and requirements for Asian women business owners.
Global Cash Flow Analysis: What, When, Why, and HowLibby Bierman
This document summarizes a presentation on global cash flow analysis. It discusses analyzing the combined cash flow of interconnected entities like businesses, property, and personal finances. Global cash flow analysis is important to get an accurate picture of debt and income when entities' finances are combined. The presentation covers why and when to use global cash flow analysis, how to perform it, best practices, and common mistakes. It emphasizes combining income and debt sources, avoiding double-counting, and using tax forms to calculate personal cash flow contributions.
PredictiveMetrics (PMI) is an analytics firm that develops statistical predictive models to help clients in collections, recovery, and debt buying/selling. It has a team of statisticians and analysts with proprietary software and tools. PMI specializes in leveraging clients' internal data like accounts receivable and placement data to develop customized predictive scores. These scores help clients optimize collections, reduce costs and delinquencies, and maximize profits. PMI has various consumer and commercial scoring products and provides ongoing services to clients.
This program provides business owners with funding options including unsecured business credit lines ranging from $50,000 to $250,000 and business credit cards. Fees are 8% of the first $150,000 and 7% of amounts over $150,000 of approved funding. Interest rates are prime plus 2-6%. To qualify, businesses must have $350,000 annual revenue, be in business for 2+ years, and owners must have at least 20% stake, 600+ credit score, and no bankruptcies in the last 5 years. This program aims to help businesses access working capital through competitive credit lines and cards while building business credit history.
Business Loans: Mistake Business Owners Make in Funding Their BusinessToby Mathis
The document summarizes the key mistake business owners make when funding their business - co-mingling personal and business finances. It provides examples of better ways to fund a business, such as using a CD to secure a business loan. The document then outlines the features of a business finance system that helps users build business credit, qualify for funding programs, and access credit providers to report payments and build their business credit asset over time.
This chapter discusses principles of corporate lending. It covers applying lending criteria, structuring loan proposals, importance of financial statements, and managing the loan portfolio. The document outlines key aspects of corporate lending including the purpose of lending, assessing borrowers using the 5 Cs and PARSER methods, product structures, required skills of loan officers, and lessons from experienced credit managers.
The document provides information about a company that offers cash flow solutions and accounts receivable management services. Some key points:
- The company has been in business since 1970 and has helped over 200,000 clients eliminate the need for traditional collection agencies, collecting $280 million last year.
- Services include first and third party collection reminders starting from 30 days past due, with fixed pricing between $6-16 per account depending on volume.
- They represent over 20,000 medical and dental practices nationally and have many industry endorsements.
- The document discusses recommendations for different clients, including sample pricing structures and performance results showing high collection rates and return on investment.
This document provides information about IQRA Education Network and Consultants which offers various accounting, auditing, coaching and tutoring services. It provides contact information for Khalid Aziz to obtain more details about freelance accounting services for small businesses, commerce coaching classes, marketing business opportunities through blogs and social media, and home tutoring services from primary to master's level.
This document provides an overview of credit reporting for small businesses. It discusses how credit reports contain information from various sources about a business's creditworthiness and payment history. The report can impact a business's ability to get credit or favorable terms from suppliers. It also notes that businesses may obtain credit reports on customers or vendors to assess risk and set appropriate credit terms. Key reporting agencies and laws governing credit reporting, like the Fair Credit Reporting Act, are also outlined. The document serves as a guide to help small businesses understand credit reporting and how to build or maintain a positive business credit history.
Commercial credit analysis can introduce a lot of complexities into the banking organization: additional underwriting standards, new financial data to collect and interpret, complex relationships with multiple entities and commingled incomes, additional regulatory focus, etc.
Sageworks Senior Consultant Peter Brown covers some of the basics that come with credit analysis including what data to consider, how to analyze the data, when to introduce benchmarking and automation and other topics.
The document discusses credit appraisal processes in the banking sector. It defines credit appraisal as an investigation done by banks to assess the commercial, financial, and technical viability of loans and projects. The credit appraisal process involves evaluating a customer's financial condition, repayment capacity, collateral, and other factors. Banks consider the 3Cs of credit - character, capacity, and collateral. The document then provides details about specific credit appraisal methods, ratios, and processes used by State Bank of India.
Key person protection is important for business continuity and to protect against financial loss in the event a key person dies or becomes critically ill. It helps minimize business interruption, ensures loan obligations are met, and protects startups and management buyouts that rely heavily on certain skills and relationships.
18 proven ways to help your business loan application succeedMerchant Advisors
This document provides 18 tips for strengthening a business loan application. It recommends examining personal and business credit scores, paying off existing debts, avoiding liens, applying when cash flow is strong, providing a detailed business history and plan, being realistic in projections, saving a nest egg, choosing an appropriate loan amount, calculating monthly payments, asking questions, getting collateral appraised, being patient, leveraging social media, selecting the right lender, asking for help, and paying attention to final details. Following these tips can help optimize the application and increase approval chances.
Business Loan Singapore | SME Loan Singapore
A comprehensive guide to business financing for Singapore SME owners. Get an overview of SME financing landscape, business loan criteria and working capital management tips to improve cash flow. More resources on SME financing can be found at https://smeloan.sg
Small business loans you can qualify for with bad credit scoreMerchant Advisors
Business loans can be challenging to secure if you have bad credit. Here are a few financing options to get small business loans with bad credit. For more information, visit at https://www.onlinecheck.com/blog/business-loans/business-loans-for-bad-credit/
This document presents an analysis of entrepreneur selection by commercial banks in Bangladesh. It discusses the importance of selecting entrepreneurs, selection criteria used by banks, factors that influence entrepreneur behavior, and how banks assess the attractiveness and risk of providing credit to entrepreneurs. The presentation is divided into several sections that cover topics such as the economic theory of entrepreneur selection and performance, innovative ideas for new businesses, and case studies of banks' lending decisions.
Credit management is the process of granting credit, setting the terms it's granted on, recovering this credit when it's due, and ensuring compliance with company credit policy, among other credit related functions
The goal within a bank or company in controlling credit is to improve revenues and profit by facilitating sales and reducing financial risks.
A credit manager is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement actions with their customers
This document provides strategies for collecting unpaid invoices. It discusses maintaining accurate client credit files, monitoring accounts receivable, establishing clear payment terms, and when to consider legal action or outside collection help. Key steps include acting quickly when invoices are unpaid, developing rapport with clients, and having proper documentation to substantiate debts if claims are disputed.
I have explained the IT service charge back model in this presentation. Although the charging is internal and their is no real money involved but it helps to evaluate an IT department's performance on objective measures. Moreover, it helps to do proper cost allocation to company's products.
PerformaCard is the first performance based credit card. Business owners are approved based on their business performance regardless of their credit score.
There are three major companies that collect business information and publish it. Dun & Bradstreet is the biggest with over 210 million records on file. Experian is the second biggest with over 27 million records on file. Equifax is the smallest business CRA.
This document provides information about the requirements for obtaining business financing. It discusses the importance of having proper financing for a small business. The document outlines what a lender will evaluate in a funding assessment, including business structure, licenses, credit profiles, financial records, and a business plan. It also explains that personal credit is heavily weighed, as it demonstrates an individual's ability to repay debt and manage finances. The personal credit section analyzes the factors that determine a credit score, such as payment history, amounts owed, credit history length, new accounts/inquiries, and credit mix. Maintaining a credit score above 720 and keeping debt ratios below 30% are recommended for optimal funding chances.
This document provides an overview of various types of bank financing options for small businesses, including lines of credit, term loans, SBA loans, commercial real estate loans, and equipment financing. It also discusses how to improve credit scores and the requirements for applying for business and residential loans. The presentation was given by Anna Xiaodan Zheng from Chase Business Banking to discuss financing options and requirements for Asian women business owners.
Global Cash Flow Analysis: What, When, Why, and HowLibby Bierman
This document summarizes a presentation on global cash flow analysis. It discusses analyzing the combined cash flow of interconnected entities like businesses, property, and personal finances. Global cash flow analysis is important to get an accurate picture of debt and income when entities' finances are combined. The presentation covers why and when to use global cash flow analysis, how to perform it, best practices, and common mistakes. It emphasizes combining income and debt sources, avoiding double-counting, and using tax forms to calculate personal cash flow contributions.
PredictiveMetrics (PMI) is an analytics firm that develops statistical predictive models to help clients in collections, recovery, and debt buying/selling. It has a team of statisticians and analysts with proprietary software and tools. PMI specializes in leveraging clients' internal data like accounts receivable and placement data to develop customized predictive scores. These scores help clients optimize collections, reduce costs and delinquencies, and maximize profits. PMI has various consumer and commercial scoring products and provides ongoing services to clients.
This program provides business owners with funding options including unsecured business credit lines ranging from $50,000 to $250,000 and business credit cards. Fees are 8% of the first $150,000 and 7% of amounts over $150,000 of approved funding. Interest rates are prime plus 2-6%. To qualify, businesses must have $350,000 annual revenue, be in business for 2+ years, and owners must have at least 20% stake, 600+ credit score, and no bankruptcies in the last 5 years. This program aims to help businesses access working capital through competitive credit lines and cards while building business credit history.
Business Loans: Mistake Business Owners Make in Funding Their BusinessToby Mathis
The document summarizes the key mistake business owners make when funding their business - co-mingling personal and business finances. It provides examples of better ways to fund a business, such as using a CD to secure a business loan. The document then outlines the features of a business finance system that helps users build business credit, qualify for funding programs, and access credit providers to report payments and build their business credit asset over time.
This chapter discusses principles of corporate lending. It covers applying lending criteria, structuring loan proposals, importance of financial statements, and managing the loan portfolio. The document outlines key aspects of corporate lending including the purpose of lending, assessing borrowers using the 5 Cs and PARSER methods, product structures, required skills of loan officers, and lessons from experienced credit managers.
The document provides information about a company that offers cash flow solutions and accounts receivable management services. Some key points:
- The company has been in business since 1970 and has helped over 200,000 clients eliminate the need for traditional collection agencies, collecting $280 million last year.
- Services include first and third party collection reminders starting from 30 days past due, with fixed pricing between $6-16 per account depending on volume.
- They represent over 20,000 medical and dental practices nationally and have many industry endorsements.
- The document discusses recommendations for different clients, including sample pricing structures and performance results showing high collection rates and return on investment.
This document provides information about IQRA Education Network and Consultants which offers various accounting, auditing, coaching and tutoring services. It provides contact information for Khalid Aziz to obtain more details about freelance accounting services for small businesses, commerce coaching classes, marketing business opportunities through blogs and social media, and home tutoring services from primary to master's level.
This document provides an overview of credit reporting for small businesses. It discusses how credit reports contain information from various sources about a business's creditworthiness and payment history. The report can impact a business's ability to get credit or favorable terms from suppliers. It also notes that businesses may obtain credit reports on customers or vendors to assess risk and set appropriate credit terms. Key reporting agencies and laws governing credit reporting, like the Fair Credit Reporting Act, are also outlined. The document serves as a guide to help small businesses understand credit reporting and how to build or maintain a positive business credit history.
Commercial credit analysis can introduce a lot of complexities into the banking organization: additional underwriting standards, new financial data to collect and interpret, complex relationships with multiple entities and commingled incomes, additional regulatory focus, etc.
Sageworks Senior Consultant Peter Brown covers some of the basics that come with credit analysis including what data to consider, how to analyze the data, when to introduce benchmarking and automation and other topics.
The document discusses credit appraisal processes in the banking sector. It defines credit appraisal as an investigation done by banks to assess the commercial, financial, and technical viability of loans and projects. The credit appraisal process involves evaluating a customer's financial condition, repayment capacity, collateral, and other factors. Banks consider the 3Cs of credit - character, capacity, and collateral. The document then provides details about specific credit appraisal methods, ratios, and processes used by State Bank of India.
Key person protection is important for business continuity and to protect against financial loss in the event a key person dies or becomes critically ill. It helps minimize business interruption, ensures loan obligations are met, and protects startups and management buyouts that rely heavily on certain skills and relationships.
18 proven ways to help your business loan application succeedMerchant Advisors
This document provides 18 tips for strengthening a business loan application. It recommends examining personal and business credit scores, paying off existing debts, avoiding liens, applying when cash flow is strong, providing a detailed business history and plan, being realistic in projections, saving a nest egg, choosing an appropriate loan amount, calculating monthly payments, asking questions, getting collateral appraised, being patient, leveraging social media, selecting the right lender, asking for help, and paying attention to final details. Following these tips can help optimize the application and increase approval chances.
Business Loan Singapore | SME Loan Singapore
A comprehensive guide to business financing for Singapore SME owners. Get an overview of SME financing landscape, business loan criteria and working capital management tips to improve cash flow. More resources on SME financing can be found at https://smeloan.sg
Small business loans you can qualify for with bad credit scoreMerchant Advisors
Business loans can be challenging to secure if you have bad credit. Here are a few financing options to get small business loans with bad credit. For more information, visit at https://www.onlinecheck.com/blog/business-loans/business-loans-for-bad-credit/
This document presents an analysis of entrepreneur selection by commercial banks in Bangladesh. It discusses the importance of selecting entrepreneurs, selection criteria used by banks, factors that influence entrepreneur behavior, and how banks assess the attractiveness and risk of providing credit to entrepreneurs. The presentation is divided into several sections that cover topics such as the economic theory of entrepreneur selection and performance, innovative ideas for new businesses, and case studies of banks' lending decisions.
Credit management is the process of granting credit, setting the terms it's granted on, recovering this credit when it's due, and ensuring compliance with company credit policy, among other credit related functions
The goal within a bank or company in controlling credit is to improve revenues and profit by facilitating sales and reducing financial risks.
A credit manager is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement actions with their customers
This document provides strategies for collecting unpaid invoices. It discusses maintaining accurate client credit files, monitoring accounts receivable, establishing clear payment terms, and when to consider legal action or outside collection help. Key steps include acting quickly when invoices are unpaid, developing rapport with clients, and having proper documentation to substantiate debts if claims are disputed.
I have explained the IT service charge back model in this presentation. Although the charging is internal and their is no real money involved but it helps to evaluate an IT department's performance on objective measures. Moreover, it helps to do proper cost allocation to company's products.
PerformaCard is the first performance based credit card. Business owners are approved based on their business performance regardless of their credit score.
There are three major companies that collect business information and publish it. Dun & Bradstreet is the biggest with over 210 million records on file. Experian is the second biggest with over 27 million records on file. Equifax is the smallest business CRA.
This document provides information about the requirements for obtaining business financing. It discusses the importance of having proper financing for a small business. The document outlines what a lender will evaluate in a funding assessment, including business structure, licenses, credit profiles, financial records, and a business plan. It also explains that personal credit is heavily weighed, as it demonstrates an individual's ability to repay debt and manage finances. The personal credit section analyzes the factors that determine a credit score, such as payment history, amounts owed, credit history length, new accounts/inquiries, and credit mix. Maintaining a credit score above 720 and keeping debt ratios below 30% are recommended for optimal funding chances.
Credit appraisal involves investigating a customer's financial condition and ability to repay a loan before providing financing. It assesses the commercial, financial, and technical feasibility of a proposed project. A credit proposal communicates the goal, objectives, and type of financing being requested, such as project financing. The credit approval process considers the type of borrower, source of cash flows, collateral, and amount/type of claim. A proposal can function as communication, a plan, and a contract.
Business credit accounts for a business’s ability to pay back its debts, not the owner’s. It is not subject to the Fair Credit Reporting Act and creditors consider your business credit scores and and payment history
This document provides instructions for setting up initial business credit profiles with Dun & Bradstreet (D&B), Experian, and Equifax. It recommends first setting up your business entity with your state and obtaining an EIN from the IRS. Then it describes how to check if you have existing profiles and how to create profiles if needed. For each agency, it recommends obtaining your business credit reports and scores to monitor your credit status. It also suggests using initial trade credit to build positive payment history.
This document provides information on how to repair damaged business credit. It discusses obtaining business credit reports from the three major credit reporting agencies and disputing any inaccurate or outdated information directly with the agencies and creditors. The key strategies outlined are sending debt validation letters, disputing accounts, settling debts by paying outstanding balances, and proactively building new positive business credit to offset negative items on the reports over time.
Business Credit Score: What You Need To KnowBalboa Capital
A good business credit score is vital to the success of your business. It can help you obtain business loans, increase credit lines, and get better credit terms. Learn all about business credit in this infographic that was created by Balboa Capital. It explains how business credit scores are calculated, and how you can improve yours. It also has some interesting facts about business credit that you might know about.
This document provides information about building business credit. It explains that business credit is separate from personal credit and is based on the business's ability to pay. It recommends starting with vendor credit cards reporting to business credit bureaus to establish a profile. Once 5 trade lines are reported, the business can qualify for revolving credit cards. The document lists specific credit options from vendors like Radio Shack, Staples, and Dell and advises having 10 accounts reporting and a $10,000 credit limit to build a strong business credit profile.
Graydon's Tips on how to improve your business credit rating. By following a few simple tips, you can improve your business credit report, give more confidence to your suppliers, achieve better credit terms, trade more and achieve better business image.
The document discusses factors that determine business line of credit interest rates. The key factors are a business's finances, market prime rate, the personal credit score of the business owner, and the business's credit score. Having good finances, a credit score over 700, and a business credit score over 80 will help a business qualify for lower interest rates. The document also provides recommendations for funding a business, including starting with invoice factoring and considering other sources that report to credit agencies.
This e-book is an insightful summary of building the best-in-class credit scoring model capable of streamlining information, reducing bad debt, and predicting bankruptcy.
The document provides information on obtaining money and credit for a new business. It discusses various financing options including bank funding, which is typically difficult for new businesses due to requirements. It then outlines several collateral-based financing options that can provide funds to new businesses. The document also discusses establishing business credit by starting with vendor accounts from suppliers that report to credit bureaus, and then gradually obtaining store credit cards and cash business credit cards to build a strong business credit profile.
Ratio Analysis and Business Performance – Why Should I Care – Part 2?McKonly & Asbury, LLP
The webinar is hosted by David Blain, Partner and Director of McKonly & Asbury’s Entrepreneurial Services Group, and Eric Fischer, Benefits Advisor at American Family Life Assurance Company of Columbus (Aflac).
This webinar is a continuation of the first webinar hosted on May 30, 2019. This webinar focuses on debt covenant and leverage ratios most used and reviewed by banks and other lending institutions. The webinar also focuses on how banks and lending institutions view these ratios and how to best prepare and present your business for compliance with these ratios.
Capital One presents on lending opportunities at the Washington, DC Economic Partnership's (WDCEP) Entrepreneur Roadmap Starting a Franchise seminar (5/14/14).
This document discusses credit reporting for small businesses. It explains that credit reports contain information provided by lenders, investors and other entities to assess creditworthiness. Maintaining a positive credit report benefits businesses seeking credit. The document outlines the major credit reporting agencies, requirements and benefits of reporting directly or through an intermediary. It also discusses laws governing credit reporting like the Fair Credit Reporting Act and how personal credit impacts a business owner's ability to obtain financing.
Similar to 5 Business Credit Scores Lenders Use to Judge You (20)
If a startup can show legitimacy it helps the lender feel comfortable about lending. Building business credit is a specific process. Your startup is your dream! It might begin on your kitchen table and turn into a multinational corporation.
This document discusses how call centers can make money by offering business credit and financing solutions to their customers. It describes a turnkey system that provides access to business credit programs, funding options, and marketing materials. Call centers can earn thousands per sale by offering this solution, as well as ongoing commissions from funding. Case studies are presented of call centers earning hundreds of thousands in revenue through high-volume sales of a business credit and financing program. The webinar argues this is a lucrative opportunity for call centers to help business owners while significantly boosting their own profits.
This document discusses common reasons why business loan applications may be declined by lenders and provides tips to improve the chances of approval. It outlines key steps like establishing credibility for the business name and address, obtaining necessary licenses and permits, setting up a business bank account and credit profiles, and maintaining good personal and business credit histories. Following the guidelines around building credibility, using an accurate business name and address, and ensuring positive credit quality can help businesses strengthen their applications and increase their approval odds.
This document discusses how to build business credit using trade credit from vendors. It explains that trade credit involves vendors extending credit to businesses for purchases, allowing payment within set timeframes like net 30 days. The document advises finding vendors that will issue initial credit to businesses with no existing credit history and that report payments to business credit bureaus. Quill is recommended as one such vendor that can help new businesses establish their first trade accounts and start building a positive business credit profile.
This document discusses how business credit scores from Experian and Equifax affect a business's ability to access financing. It notes that the webinar will cover how the Experian business credit score works and how to control the score to get more financing. It also mentions that it will compare scores to others in the same industry, dissect Experian's Intelliscore Plus, compare Experian scores to FICO scores, and cover how Experian and Equifax scores depict risk of business failure and affect borrowing ability. Finally, it states that the webinar will provide details on Equifax's Credit Risk Score and explain what the actual scores from Experian and Equifax mean and how they impact business operations and access to money
Business credit reporting agencies obtain data from a variety of sources to calculate business credit scores and assess the risk of a business defaulting on payments. They collect objective data including payment history reported by creditors, public records like bankruptcy and lien filings, tax information from the IRS, and business registration and incorporation documents. They also gather supplemental information from sources like directories, press releases, and web searches. The goal is to objectively measure a business's ability to pay its bills on time based on this collection of financial and public records data on the business.
This document discusses a webinar about secured and unsecured business financing options that are available now. The webinar will cover the differences between secured and unsecured financing, types of unsecured financing like business credit cards and merchant financing that businesses can qualify for. It will also discuss secured financing options with low interest rates that even startups and businesses with credit challenges can access.
This document outlines the steps to get business credit cards from Amazon, Dell, and Walmart without a personal guarantee. It discusses obtaining an EIN number and DUNS number for free, understanding business credit reports, getting approved for starter vendor accounts, and following a 5-step process to build business credit in a way that leads to approval for revolving credit cards. The webinar provides the exact steps for getting approved for these cards without a personal credit check.
This document outlines how to build an excellent business credit score in 90 days. It discusses the three main business credit scores, the factors that affect scores, who will approve initial business credit, and how to use the newly established business score to qualify for credit with no personal guarantee. The webinar teaches little-known details about business credit scoring and how to establish excellent credit in just three months.
A walkthrough about 10 business bank account hacks to properly setup and manage your business bank account... and get an excellent bank rating credit score
The document outlines 9 key things to learn about the major credit reporting agencies Dun & Bradstreet, Equifax, and Experian. It will cover the history of the agencies, which has the most records on file, unethical actions that got them into trouble, how one agency's actions led to consumer credit protection laws, the original industry that credit reporting emerged in, which has headquarters in Ireland, which started decades before Trans Union, and an overview of finance products.
This document describes how to obtain $150,000 in credit lines with 0% interest rates through an unsecured business financing program. It notes that the program can obtain 5-8 credit cards or lines of credit for businesses with credit limits 5-8 times the applicant's highest existing personal credit limit. The program claims to be able to approve businesses for a total of $150,000 in credit limits across multiple cards within a short period of time and help build business credit reports through the business credit reporting agencies.
This document discusses unsecured financing options for businesses, including unsecured credit cards, cash flow-based lending, merchant advances, and revenue lending. Unsecured financing does not require collateral to secure the debt. Some options highlighted are unsecured credit cards for businesses with good personal or business credit, which can provide limits from $10,000 to $150,000. Revenue lending offers loans up to $1 million based on 8-12% of annual revenue, with interest rates from 10-45%. Merchant advances similarly offer short term loans up to $1 million based on one month's sales volume.
This document discusses various types of unsecured financing options for small businesses, including unsecured business loans, cash advances, business credit cards, and business credit lines. It notes that unsecured financing carries the highest risk for lenders since there is no collateral pledged. As a result, interest rates for unsecured financing tend to be higher than rates for secured financing. The document also provides details on specific unsecured financing products like cash advances, business credit cards from Chase and American Express, and methods for obtaining business credit without a personal guarantee.
The document discusses various types of business loans and how to qualify for them. It describes conventional bank loans that require good financials and credit. Alternative loans are easier to qualify for and can be based on business cash flow, personal credit, or collateral. Cash flow loans require consistent monthly deposits over $10,000 and being in business over a year. Credit loans are unsecured up to $150,000 with a 685+ credit score. Collateral loans have low rates based on collateral like receivables or equipment. A business loan broker assists by finding the best loan options based on a business's strengths.
The document discusses credit privacy numbers (CPNs), shelf corporations, and buying tradelines. It provides information on what CPNs and shelf corporations are, as well as warnings that using a CPN in place of a SSN for credit applications is considered fraud and illegal. The summaries from credit reporting agencies, government organizations, and the FTC all confirm that CPNs cannot be used to establish new credit reports or identities and promoting their use for this purpose is fraudulent.
Learn more about small business loans, cash access problems,cash flow loans, unsecured financing, collateral-based financing and how to get approved for business financing.
1) Shelf corporations are inactive companies that have been formed years ago and "put on a shelf" to age, making them more valuable to purchase for the purpose of gaining an instant business history.
2) Purchasing an aged shelf corporation can help a new business or entrepreneur qualify for loans and contracts that require an established business history. However, shelf corporations are viewed negatively by regulators and credit bureaus as potentially unethical or deceitful.
3) While shelf corporations can provide some legitimate benefits like faster licensing or credibility, using them to misrepresent business age or access credit could damage a company's reputation if discovered.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Alexander Belyaev
Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
2. Consumer Credit Scores
• You are obviously familiar with your personal
credit profile and score
• You have credit with 3 consumer reporting
agencies TransUnion, Experian, and Equifax that
provide profiles and scores for you individually
• A consumer credit score is a mathematical model
that is used to depict a consumers risk of going
90 days late on an account within the next 24
months
• The most popular score is
the FICO score ranging from
350-850
3.
4. Business Credit Scores
• Your business also has its own credit profile and
score linked to your business EIN number
• 3 business reporting agencies provide your
business credit profile and score Dun &
Bradstreet, Experian Commercial, and Equifax
Commercial
• A business credit score is a mathematical model
that is used to depict a business’s risk of going 90
days late on an account within the next 12
months
5. Business Credit Scores
• A business credit score reflects the business’s
likelihood of defaulting on an obligation, not
the business owner’s
• The business credit score is based on how the
business obligations are being paid, not how
the business owners pays their personal
obligations
6. Business Credit Scores
• Each reporting agency provides access to
approximately 5 business credit scores that
evaluate different forms of risk
• FICO also provides its own business credit
score to assess business risk
• And banks have their own internal bank credit
score that’s used to determine business loan
approval
7. Business Credit Scores
• Of all of the scores that are available today,
there are 5 you should become VERY familiar
with
• These are the 5 core scores that lenders and
credit issuers use most to determine your
approval for credit and financing for your
business
8. Business Credit Scores
• YES, your business credit scores ARE used each
and every time you apply for credit and
financing for your business
• But lenders and credit issuers will NOT tell you
this, nor tell you which scores they’re using to
assess your business
• There is no Fair Credit Reporting Act in the
business world that requires them to do so as
there is in the consumer credit world
9. Business Credit Scores
• It’s also important to note, that your business
credit profile and scores are available to ANYONE
who wants them
• In the consumer world someone needs your
permission to pull your consumer reports,
something the FCRA calls “permissible purpose”
• But there is no FCRA in the business
world, so anyone who wants your
reports can easily and cheaply get
them including competitors,
prospects, clients, lenders, and more
10. Score #1…
Dun & Bradstreet’s Paydex Score
• The main credit score used in the business
world is known as a Paydex score, provided by
Dun and Bradstreet
• From D&B… “The D&B PAYDEX® Score is D&B’s
unique dollar-weighted numerical indicator of
how a firm paid its bills over the past year,
based on trade experiences reported to D&B
by various vendors”
11. Dun & Bradstreet’s Paydex Score
• “Dollar-weighted” means that D&B gives more
“weight” to accounts with higher limits than
ones with lower limits
• “How a firm paid its bills over the past year”,
means this score is based on past
performance as the main driver
• It’s simply based on how you paid your bills
12. Paydex Score
• The Paydex score ranges from 0-100, with 100
being the best score a business can obtain
• A score of 80 or higher is considered “good” or
healthy credit
• A business can obtain a good business Paydex
credit score by ensuring payments are made
promptly to suppliers and vendors
13. D&B Paydex Score
Business credit scores are based only on whether the
business pays its bills on time
– Expect payment may come early 100
– Payments comes within early discount period 90
– Payment is prompt 80
– Payment comes 14 days beyond terms 70
– Payment comes 21 days beyond terms 60
– Payment comes 30 days beyond terms 50
– Payment comes 60 days beyond terms 40
– Payment comes 90 days beyond terms 30
– Payment comes 120 days beyond terms 20
– Unavailable UN
14. Paydex Score
• A business will need a PAYDEX score of 80 to
obtain the most favorable financing
• To obtain a PAYDEX score a business will need at
least 5 trade accounts reporting to their file
• It can take as long as 90 days for those trades to
report and a score to be established
• The business credit score itself is calculated by
using as many as 875 payments
15. D&B Predictive Scores
• Predictive Scores predict a company’s
expected performance over the next year, or
12 month time period
• D&B provides 3 Predictive scores
– D&B Delinquency Predictor Score
– Financial Stress Score
– Supplier Evaluation Risk Rating
16. 3 D&B Predictive Scores
• D&B Delinquency Predictor Score- Predicts
whether a business will pay its bills on time
• Financial Stress Score- Predicts the chance that
a business will experience financial distress
• Supplier Evaluation Risk Rating- Predicts
whether a business will stop delivering its
goods and services
17. D&B Performance Scores
• D&B’s Performance Scores reflect a
company’s past performance using only
information within the D&B database
• D&B provides 2 core Performance Scores
–Paydex Score
–D&B Rating
18. 2 D&B Performance Scores
• The D&B Rating- Indicates a company’s net
worth range based on company financial
statements, as well as a company’s overall
condition
• The Paydex Score- Indicates how a company
has paid its bills over the last 24 months
19. Score #2…
Experian’s Intelliscore
• Experian’s most recent score system is known as
Intelliscore Plus, which they boast of as the next level
in credit scoring
• Intelliscore Plus takes into account hundreds of
variables to offer a business score between 0-100,
with 100 being the highest
• Intelliscore actually predicts a business’s risk of going
seriously delinquent, or over 91 days late, or having a
major financial issue such as bankruptcy within the
next 12 months
20. Experian’s Intelliscore
• The 0-100 is a percentile score that reflects
the percentage of businesses that score higher
or lower than the specific business being
looked at
• For example, if the business has a score of 20,
this means that company scores better than
19% of other businesses
• That also means that 80% of other
businesses score higher than that
business
21. Experian’s Intelliscore
• The new Intelliscore Plus has over 800
aggregates or factors that affect the credit
scores
• Experian first takes a business and looks at
data segments such as firmographics, public
records, collections, and trade information,
then places each business in one of three
different models
22. Experian’s Intelliscore
• The first model is their Commercial Model, for
small, medium, and larger businesses
• Second is their Blended/ Owner Model,
where the commercial data is then linked with
the owner’s information
• Thirdly there is the Intelliscore Plus, or their
percentile score
23. Experian’s Intelliscore Breakdown
• Intelliscore Plus, just like FICO, has multiple facets
to the entire score makeup
• The score is still based on the payment history of
the business, but many other factors tie into
percentages of the overall score
• The Historical Behavior or payment history
accounts for 5-10% of the total score
• Current payment status, trade balances, and
percent of accounts delinquent account for 50-
60% of the score makeup
24. Experian’s Intelliscore Breakdown
• The business’ credit utilization affects 10-15% of the
total score. This has to do with the amount of credit
that has been extended to the business in relation to
the balances they currently have on those accounts.
• The company profile, age of business, industry risk, and
size of business assessed by number of employees
accounts for 5-10% of the total score
• And 10-15% of the total score is
determined based on the derogatory
items, collections, liens, judgments,
and bankruptcies that business has
26. Intelliscore
Scores are based on a number of factors contained in your
business credit report.
– Number of trade experiences
– Outstanding balances
– Payment habits
– Credit utilization
– Trends over time
– Public record recency, frequency and dollar amount
– Demographics such as years on file, Standard
Industrial Classification codes and business size
27. Experian’s Financial Stability Risk Score
(FSR)
• Predicts potential of a business going
bankrupt or defaulting on its obligations
• Scores range from 1-100
• Broken down into 5 Risk Classes
28. Experian’s Blended Score
• A one-page report providing summary
information on both the business and the
business owner
• Research shows that a combined
business/owner credit-scoring model is more
predictable than business or consumer only
scoring models
29. Score #3…
Equifax’s Credit Risk Score
• Equifax’s main business credit scoring model is
the Credit Risk Score
• This score was created to predict the
probability of a business customer becoming
seriously delinquent (90 days late) within a 12-
month period
• Credit scores range from 1-100, with a lower
score indicating a higher risk of serious
delinquency
30. Equifax’s Credit Risk Score
• Scores of 90 and above express that obligations are
being paid as agreed
• Scores from 80-89 indicate payments are being made
1-30 days overdue
• Scores of 60-79 represent payments being paid 31-60
days past the agreed-upon due date
• Credit scores between 40-59 indicate payments being
made 61-90 days overdue
• Scores between 20-39 mean obligations are being paid
91-120 days overdue
• Scores between 1-19 mean obligations are being paid
120+ days past the due date
31. Equifax’s Credit Risk Score
• Paid as Agreed 90 +
• 1-30 days overdue 80-89
• 31-60 days overdue 60-79
• 61-90 days overdue 40-59
• 91-120 days overdue 20-39
• 120+ overdue 1-19
32. Equifax Credit Scores
• Credit Risk Score predicts the
likelihood of a business incurring
a 90 days severe delinquency or
charge-off over the next 12 months
• Business Failure Score predicts the likelihood of
a business failure through either formal or
informal bankruptcy over the next 12 months
• Payment Index provides a dollar weighted index
of a business's current and past payment
performance based on all payment experiences
in the Equifax Commercial database
33. Score #4…
FICO SBSS Score
• The FICO SBSS score is a measure of you small
business’s credit worthiness
• This score is becoming very popular with
lenders
• This score has also become widely used by
SBA to qualify business loans
• It’s based on BOTH your personal and your
business credit history, not just your business
as the main business scores do now
34. FICO SBSS Score
• The SBSS was actually launched all the way
back in 1993
• Since SBA started using it to evaluate all 7 (a)
loans under $350,000 in 2014, it’s now become
even more popular
• Scores reflect the likelihood
of the applicant paying their
bills timely
35. FICO SBSS Score Range
• Scores range from 0-300
• Higher scores mean lower risk, so the higher
score you have the better
• Personal and business credit history as well as
financial data are used for
the total score calculation
36. FICO SBSS Score Range
• As of 2014, all SBA 7(a) loans must go through
a business credit score pre-screen
• For SBA loans, you won’t be approved with a
score below 140
• But they typically set the cutoff as high as 160
• Below that, you’ll probably be denied
because of being too high a risk
• Actually, chances are good the SBA lender
won’t even submit your application to SBA if
your score doesn’t meet this threshold
37. FICO SBSS Score Formula
• Many factors are taken into account to
calculate the FICO SBSS score, some include…
• The owner or co-owner’s personal credit
information
• Business credit history
• Age of business
• Years in business
• Financial data including assets
38. FICO SBSS Score Formula
• Cash flow
• Revenue
• The last 12 months of Paydex scores from D&B
• Liens
• Judgments
• Andy other known financial data
39. FICO SBSS
• If you have no business credit history and limited
time in business, the highest possible FICO SBSS
score you can get is 140
• But even to get that high of a score you’d have to
have pristine personal credit if no business credit
is established
40. Used to Evaluate Larger Transactions
• SBSS models are validated for term loans, lines
of credit, and commercial cards all the way up
to $1 million
• This helps credit issuers making evaluations
for larger transactions
• If you are applying for bank financing of $1
million or below, chances are good that your
SBSS score is being evaluated
41. Data Combinations
• SBSS gives small business credit issuers different
combinations of data to evaluate the risk of a
business
• For example, a credit issuer can choose to only
evaluate the application data of the principle
owner, or they can choose to also include data
from one or more of the business bureaus
• Or they can choose to weight one aspect higher
than another
42. Data Combinations
• This is a highly intelligent score because it
automatically goes from one business bureau to
another in whatever order or priority the credit
issuer chooses, to generate a score
• So if a lender prefers the D&B Paydex score as the
default, the SBSS pulls that data set
• If there isn’t enough info to generate a score, it
then automatically checks another business score
such as the Experian Intelliscore, or it can even
move on to the Equifax commercial data
43. Score #4… Bank Rating
• Bank credit (Bank Rating) is the total amount
of borrowing capacity a business can obtain
from the banking system
• This is not the same as business credit, which
is a much broader category of lenders such as
suppliers, credit card issuers, or leasing
companies
44. Bank Credit
• A business can secure more business credit
quickly as long as it has a minimum of one bank
reference and an average daily account balance
of at least $10,000 for the past three months
• This yields a “Bank Rating” of Low-5 (meaning an
ADB of $5,000 to $30,000)
• A lower rating, say a High-4, or balance of $7,000
to $9,999 won’t put a stop to the business’s
application, but it will slow down the approval
process
45. Bank Ratings
• High 5, account balance of $70,000-99,999
• Mid 5, account balance of $40,000-69,999
• Low 5, balance of $10,000-39,000
• High 4, 7,000-9,999
• Mid 4, 4,000-6,999
• Low 4, 1,000-3,999
46. Bank Ratings
• Business owners should do whatever they can to
keep at least $10,000 in their account over a 90-
day period
• The money should be kept there just to ensure
the bank rating is high enough to increase future
financing approvals
• Each cycle is based on the balance rating during
the previous three month period
• So before a business decides to apply for credit, it
should keep a balance rating of “low 5” for the
past three months
47. Other Bank Rating Factors
• # of non-sufficient funds (NSFs)
• Positive cash flow
• Consistent Deposits
• The Age of the account
• The bank products the business uses
• And any savings account or investments the
business has
48. Score Summary
• Paying business bills as agreed will net a positive
credit scores with D&B, Equifax, and Experian
• Your personal credit can be blended into the
FICO SBSS and Experian Intelliscore Plus
• Having a good Bank Rating is mostly about
keeping an average of $10,000 in your bank
account over the last 90 days