Potential Benefits of Business Credit

The potential benefits of business credit far outweigh the effort and investment required to build excellent corporate credit. Chances are that your competitors are building corporate credit. Many are using corporate credit (business credit) to access business credit lines based on business performance. The Small Business Administration uses business scoring in their initial pre-approval process. Large tech-based lenders have a strong interest in lending to businesses that have good business credit.

Some benefits of good business credit scores are as follows:

• Better chance of small business loan approvals
• Higher loan amounts (approvals)
• Access to business credit without a personal guarantee
• Lower rates on loans, credit cards, and insurance
• Business credit can be used with Landlords to lease property, office space
• Smaller deposit requirements on leases and new utilities
• Stronger relationships with suppliers, providers and merchants
• Stronger industry reputation and image (Branding)
• A valuable asset if you ever decide to sell your business

Business Credit Benefits Liquid Credit Scoring

Did you know that lenders, contract awarders and others are pulling your business credit scores prior to making an offer. This scoring is available within seconds. Do you know how you look to others?

FICO’s Small Business Scoring Service (SBSS) rank-orders applicants by their likelihood of making payments on time.

The score ranges from 0 to 300.

The higher the score, the better. The scoring can use both personal and business credit data and other financial information. A strong history of business credit with timely payments to vendors and suppliers may help boost your SBSS score.

The FICO SBSS score will be used for term loans, lines of credit, and commercial loans up to $350,000 from lenders the Small Business Administration. The minimum score to pass the SBA’s pre-screen process is currently 140.