Do you know what your FICO SBSS score is? And how it's being used to make
lending decisions about you? Well, I'm about to show you exactly what FICO
small business score is and how you can
control it to be able to get the best funding. We're going to talk about how the
FICO SBSS score is actually calculated, and the factors that you can control to
make sure you have an exceptional score we're going to talk about lending sources
that are using FICO SBSS, including SBA,
and why it's essential that you know and control the score to be able to get the max
funding. We're going to talk about the range of the FICO SBSS score and what
you need to do to get on the highest range that makes you acceptable for SBA loans
and many other kind of financing along the way. I'm going to give you my best tips in
tactics to get the best SBSS Score. And if you stick around to the end, I'm going to
get you access to free credit monitoring, it’s free credit monitoring with Dun lot to
and Bradstreet, Equifax, and Experian. We've got a
cover, so let's dive in.
So what exactly is your FICO SBSS score? Well, your SBSS score is a Business credit
score issued by FICO, you know, FICO the same one very popular in the consumer
credit scoring world now issues the SBSS score for small businesses. Now big
differences between consumer and commercial
credit scoring with FICO. First of all, in the consumer world, you're typically used to
getting a TransUnion Equifax Experian credit report. But you also see FICO credit
scores on those credit reports. Now, TransUnion, Equifax, Experian wanted to
compete with FICO, so they rolled out a vantage score which is more commonly
used than it was about a decade or so ago when it came out. But FICO is still the
dominant player when it comes to lenders and credit issuers using their credit scores
to make all kinds of consumer credit decisions.
Now, in the commercial world, it's very different. Dun and Bradstreet, Equifax,
Experian are the three biggest business credit reporting agencies and they all had
their own credit scores. Their credit scores don't come from FICO. So when you get a
D&B, Equifax, or Experian, Business Credit Report, you'll oftentimes see one-two, even
as much as 5 credit scores on those reports. And those scores are calculated.
Those algorithms are created by the credit bureaus themselves. So in the
consumer world, the credit bureaus typically issue
credit reports and the FICO is the main player for credit scores when the
commercial world. The credit bureaus are issuing the reports and the most
commonly used credit scores. So SBSS stands for Small Business Scoring Service.
And this SBSS score was created by FICO because organizations like SBA wanted an
even more accurate way of gauging risk for potential borrowers. See the business
credit reporting agencies, have about a handful of scores each. We talked about
that in each score is used fora specific purpose. So for example, Dun and
Bradstreet has a Paydex Score that only takes into account, accounts
that have been reported to D&B and how those have actually
been paid on average. So, for example, if you pay all your bills on average on time,
you get an 80 Paydex Score. Now, if you pay them 30 days late and
you get a 70 score and so on, now they have other scores as well, such as a
financial stability score that takes into account payment experiences and also
takes into account other factors, such as your financial information to depict how
likely you are to cease operations, close your doors in the next 12 months. So their
scores from the credit bureaus have very specific purposes, but FICO actually does
something that no other score does. First of all, it's completely calculated based on
how the actual lender or the source that's using it wants it to be calculated. We'll talk
more about that in a minute. And it also brings in a lot of different credit reports
and different credit scores into one to give the best
depiction of risk to a lender credit issuer. So the FICO SBSS score is customizable.
And by this I mean each lending source can calculate the score however they like.
So, for example, Wells Fargo and Bank of America are going to have different FICO
SBSS scores because they're the ones that determine what kind of wait certain things
have into that. SBSS scores, its exactly why you really can't obtain your own FICO
SBSS score from anywhere, because no matter where you obtain it, Bank of
America, Chase, Wells Fargo, it's all going to be different. So let me explain dipper
how this works. So for example, FICO, SBSS
takes into account consumer and commercial credit reports. So let's say on
the consumer side you have TransUnion, Equifax, Experian and on the business side
you have Dun& Bradstreet, Equifax, Experian. Well, let's say that Wells Fargo,
once the way your commercial credit scores higher end of the calculation of
SBSS than consumer and they want Dun & Bradstreet maybe first, Experian to be
second, Equifax to be third. Then in this case, their SBSS Score will be calculated by
taking into account Dun&Bradstreet data first,
then Experian commercial data, then Equifax, then going to consumer credit
report data in whatever order and weight they like so they can actually determine
what of this credit reports and scores calculate more into your SBSS score than
another, and another lender can determine in another way. Now, primarily, the way I
laid it out is how a lot of lenders choose to do it. They put commercial credit scores
over consumer, which means they take into account your Dun & Bradstreet, your
Equifax, Experian. They bring that into FICO SBSS and give it more weight into the
overall score than consumer credit score. It's very important that you establish your
business credit by establishing good, deep, well-established business credit
reports and scores. That's going to give you the best
chance of getting a high FICO SBSS score. Now, speaking of SBSS scores being high,
they actually range from zero to 300 with 300 being the best. And to qualify for loans
like SBA, you need to have a 140 to a 160 score, depending on what type of SBA loan
program you're actually looking to apply for. Some of that you know a little bit about
FICO SBSS. The question becomes how important is this score really? Well, the
answer is very important. Look, a lot of banks are relying on FICO SBSS to make all
kinds of lending decisions about you. Some of them include US Bank, KeyBank,
Huntington National Bank, even Santander Bank. And as we mentioned, you have to
have an acceptable FICO SBSS scored. You can get an SBA loan. So what this
means, that means if you want long term financing with low-interest rates and really
low affordable payments, you've got to focus on improving your FICO SBSS score.
So how do you improve your FICO SBSS
score? Well, keep in mind that with SBSS, it takes into account consumer and
commercial credit. So the better those two types of credit are, the better your FICO
SBSS score is going to be. As a matter of fact, you can't even have an SBSS score
high enough to get an SBA loan if you have no established business credit. Let me
repeat that. You cannot have a score high enough to get an SBA loan if you have no
established business credit.So you've got to establish Business credit with all three,
Dun and Bradstreet, Equifax, Experian. The more you establish those credit profiles,
the better your credit scores are, the higher your FICO SBSS scores. Also,
you want to focus on improving your consumer credit,
the better. Your consumer credit is with TransUnion, Equifax, Experian,
the more that's going to help your SBSS score as well. But keep in mind, the primary
driver with most lenders is your business credit score. So focus on getting those
established, focus on paying your business bills on time. That's going to go a
long way to helping you have a good SBSS score and other factors tie in your score
as well. How long you've been in business, how many employees you have, the type of
revenues and profits are generating. Even public records such as collections,
judgments, lawsuits, all can work against you in
your FICO SBSS score. So keep those things in mind as you're working on
establishing a solid score that can help you get more money. And there you have it.
That's all the important details of FICO SBSS. You know what it is, you know how it
works. You know how it compares to consumer credit scores. And most
importantly, you know what you need to do to improve
it to make sure you have a great score to help you get the most money out.
The best terms will help you get your business credit reports for free with Dun
and Bradstreet, Equifax, and Experian. Even all of those reports with you can give you
tips and tactics to improve
your business credit. We'll also do a funding qualification, tell you all the
funding you qualify for right now. All that happens at no cost on a free consultation.
Give us a call at 877-600-2487 that's 877-600-2487. You can also e-mail for your
consultation info@creditsuite.com that's Info@creditsuite.com. Or schedule your
consultation online at creditsuite.com/ consult that's creditsuite.com/consult. If
you want more information on building your business credit, make sure you visit
our link creditsuite.com/ein. That's creditsuite.com/ein to get our free guide.
That gives you the exact steps to build business credit without a personal
guarantee and without a personal credit check. If you got value from this training,
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