Does SBA use FICO SBSS scores I get that question a lot and in this training we're going to dive
in and decode everything you need to know about SBA what they're using for underwriting score wise
and talk more about FICO SBSS. I'm going to show you exactly how FICO SBSS score works what it is,
how it's calculated what you need to know to get a phenomenal score, we're going to talk
about SBA, and how they underwrite files and how and what scores they're actually using
to make all kinds of decisions about you, I'm going to give you tips and tactics along the
way to be able to get good FICO SBSS scores, and be able to get approved for SBA financing
and if you stick around to the end, I'm going to get you access to our funding vault of 27
killer ways to get money for your business, so even if SBA won't work for you we'll give you plenty of
access to other funding options that absolutely will we've got a lot to cover, so let's dive in.
So let's start at the beginning, what the heck are FICO SBSS scores, so we're familiar with
credit scores with Dun & Bradstreet, Equifax, Experian they're the main credit scores used
by a lot of lenders and credit issuers but what a lot of entrepreneurs don't know about
is that FICO actually has a score that works in the business world as well, and it's called
FICO SBSS. Now FICO SBSS is very unique and very interesting because it's not a score
that you're ever actually going to be able to access and get on your own, and here's why FICO
SBSS is customized per the actual lender that's actually using it that's what makes it so unique.
So that means that your FICO SBSS score with Wells Fargo is definite from what you're going to
find with Chase and different from what you're going to find with Bank of America that's the appeal
of FICO SBSS. So let's talk about some of the basics, FICO SBSS depicts your risk of going lay
on accounts basically over 90 days late over the last 12 months on accounts that you may actually
be issued, so it tells lenders and credit insurance whether or not they should give you credit and the
likelihood that they're going to pay back that loan or credit that they're actually issuing the
score go ranges from 0 to 300 with 300 being the best score you can get, so a higher score is good
with the FICO system. Now here's what's unique about FICO is that each bank that actually uses
FICO has their own determination of how the score is actually weighted or prioritized, so let me
give you a better idea of how this works. FICO SBSS pulls in a lot of information from a lot of
places, first of all it pulls in your commercial credit scores into the actual overall score calculation
so it looks at you're Dun & Bradstreet your Equifax, Experian commercial credit reports and
scores and it pulls that in to FICO SBSS, and it also looks at your Equifax your Experian and your
Transunion consumer credit data and consumer credit scores and pulls that information in as
well. So when we look at this we see that FICO SBSS is a reflection of your risk taking into account
your consumer scores and your commercial scores now, how is this done that's where it becomes
lender specific. So each lender let's say Bank of America may determine hey we want our FICO
SBSS score to take into account Dun & Bradstreet commercial data first, Experian commercial data
second, Equifax commercial data third, then we want to pull in Equifax then Experian then
TransUnion consumer data in this order, we want to weight it that way, so D&B, Paydex score and credit
report data has more weight by far than TransUnion consumer data, or they may flip it
around so each bank determines which bureau which score they actually want to weigh higher into
the system and prioritize this is why you can't access FICO SBSS because it's different for every
single lender because they're determining how the actual score is weighted, So what data is really
taking into account well pretty much everything, so they're looking at your utilization they're looking at
your credit scores they're looking at how you've actually paid bills in the past they're looking at
public records, judgments, tax liens, even lawsuits in the commercial side or on the business side,
they're looking at bankruptcies all that information it also takes into account a lot
of other data from your business credit reports your actual industry, okay how long you've been in
business for what your revenue is what your net profit is? How many employees you have okay your
overall score summary with the bureaus taking into account factors like I said like your industry.
So all of this information is taken from your commercial your consumer credit reports and then
used to determine if you should be lent money how much you should be lent, now who's using FICO
SBSS, well a lot of different institutions are including KeyBank including Huntington National
Bank but it's really used primarily as a driver for SBA, so for example you need to have an acceptable
score with FICO SBSS to even get an SBA loan. You can't even get an Sba loan with a score under 140
with FICO SBSS, so you have to make sure that you're building a good FICO SBSS score because if
you don't do this you cannot qualify for SBA financing with any lending institution, so it's used by
a lot of banks primarily as SBA to primarily by SBA to determine if you should be approved for
financing even how much money you may get. And now you know how important FICO SBSS is now
what do you do to actually get a good score? Well the first thing you need to do is establish business
credit, look almost all lenders that use FICO SBSS prioritize commercial data information from
Dun & Bradstreet, Equifax, Experian about your business higher than your personal credit reports.
So you need to make sure you establish business credit you need to build business credit with Dun
& Bradstreet, Equifax, Experian you need to get as many accounts on your credit reports as possible
you need to make sure you pay all those accounts on time or early to get really good business
credit reports and scores, if you do that one thing and only that one thing you will have a high FICO
SBSS score now if you have issues on the consumer side get those fixed there's plenty of
people out there that specialize in the area of helping you improve consumer credit and it's worth
doing so because if you do so you will improve your overall FICO SBSS score, but I can't say enough that
you need to work on establishing business credit it's mathematically impossible for you to have a
FICO SBSS score even high enough to get an SBA loan if you have no business credit established you
must establish business credit or you can't even get an sba loan because your FICO SBSS won't be
high enough. So make sure you establish good business credit profiles and scores get accounts
that report pay your bills have any consumer credit issues get those fixed if you do those things then
you're going to be well on your way of being able to establish an exceptional FICO SBSS score.
Want to learn more well go to youtube.com/creditsuite and you'll be able to find
tons of training that we've done that really provide extensive details on how FICO SBSS works,
and things you can do to improve it plus we'll give you all kinds of information about your other
commercial credit scores with Dun & Bradstreet, Equifax, Experian, as matter of fact, talking about
credit scores let me tell you how you can get your credit scores and reports for free
with Dun & Bradstreet, Equifax, and Experian, you could do that by scheduling a consultation with us.
On this consultation call we will get your credit reports with D&B, Equifax, Experian, for free
give you tips and tactics to improve your business credit we will also come in to do a fundability
assessment of what needs to be fixed to make your business more lendable, and we'll do a funding
qualification to tell you all the financing you can get right now, all that happens on a free
consultation you can give us a call 877-600-2487 that's 877-600-2487 you can email us for your
consultation at info@creditsuite.com that's info@creditsuite.com where you can schedule
online at creditsuite.com/consult that's creditsuite.com/consult for more
information on building your business credit grab our free guide at creditsuite.com/ein
that's creditsuite.com/ein and I look forward to seeing you on our next
training where we talk about more cool ways to get money to start and grow your business.