![]() ![]() Unfortunately, there is little consistency when you try to compare the meaning of a score from one credit rating agency to another. Experian also has a rating system that ranges from zero to 100, with 70 being a good score. Dun & Bradstreet assigns credit scores on a scale of zero to 100, with 80 considered a good score. Other main business credit scores include the Dun & Bradstreet Paydex score, the Experian business score and the Equifax business score. This affords them the time to make decisions in hours, not days.” “More lenders are using it because it helps them make faster, more accurate lending decisions. “Banks aren’t required to disclose that they use the FICO SBSS score, and very little information exists about it online,” King said. “It’s the one credit score all business owners should know, but many have never heard of it because, until now, it’s been hard to get your hands on it,” said Levi King, co-founder and executive chairman of Nav, an online credit monitoring service that provides small business owners with their SBSS score. You may have never heard of an SBSS score before, despite its importance. Paying off debt may impact your credit score, because lenders may look at your personal credit history when assessing your business. It differs from other business credit scores due to FICO’s long history of evaluating personal credit. It’s free from bias and time-consuming manual evaluations of a company’s financial track record. The SBSS score is a rigorous and standardized way to deliver information about a small business. It’s a powerful and useful tool for lenders interested in working with small business owners. By making it easier for lenders to evaluate a company’s risk, more small business owners can obtain loans faster. It’s meant to minimize the time and expense of evaluating a small business applicant’s credit risk. The SBSS score was created via FICO’s proprietary automated processes. If a business doesn’t have a score above 140, it is unlikely to qualify for an SBA loan – though there are business loans you can get with bad credit. Since 2012, the Small Business Administration (SBA) has been using this score to prescreen candidates for 7(a) loans under $350,000. SBSS scores range from zero to 300, and the higher your score is, the better it looks for your business. It shows a lender how often your business pays its bills on time and whether it has a history of defaulting on different types of loans. That’s the SBSS.Ī business credit score is similar to a personal credit score in that it gives lenders a snapshot of your financial responsibility. Though FICO is commonly known for tracking personal credit scores, it also has a business credit scoring model. The FICO Small Business Scoring Service (SBSS) is one of the main business credit scores. Learn how this score works and the steps you can take to begin improving your score today. Unfortunately, many business owners don’t know what an SBSS score is. A good SBSS score can make it easier to get the funding your business needs so you’re not struggling to get by each month. If you’re hoping to qualify for a small business loan, you should pay attention to your SBSS score. Sponsored by LoanMe, a licensed lender that offers loans to small businesses and sole proprietorships, with loan amounts up to $250,000 in most covered states and also feature same day or next day funding. ![]()
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