Credit Score – A Must for Small Business SBA Loan
Student Loans, Small Business Loans, business financing
SBA began using the credit score in June 2012 and since January 2014 it has been used in almost all SBA 7 (a) loan programs. Banks consider credit score as an important factor, to decide hat whether they must give a loan to the applicant or not. A good credit score can guarantee the fast loan processing and loan approval. How you, being a small business owner, handle your money is justified by your credit score. A poor credit score can show the inability to manage the business cash flow.
Credit score, which is considered by the banks are:
1 Business Credit Score
According to the USA SBA factors Business credit can go from 0 to 100, which is decided by your business credit history, bill pay cycle and available credit. A score 75 is considered as good by SBA or the lenders.
2 Personal Credit Score
Personal Credit Score is as much important as other factors and the 640 is considered as a good business score. Any score greater than this is usually considered as good. A score of 800 is considered as a good score.
When you apply for any business SBA loan credit score review is a must. It can help you in ensuring that you will get the business loan without any hassle. Every business owner must have a good credit history before applying a loan.
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