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Patient Financing for Hospitals & Providers

 Sending patients a bill they can’t afford means your bill will not get paid

Try this instead: $2,700 DUE NOW $400 AVAILABLE FUNDS $116/month 0% INTEREST for full term Hospital Paid immediately NO RECOURSE 

As an example of how well this works: A hospital had a loss of 2 million, our program added 9.8 million to their bottom line…a large hospital with 15 billion would add 305 million in additional revenue!

HOSPITALS & PROVIDERS

Try it for 100 days RISK FREE and increase your collections 100%.

  • No recourse
  • No upfront fees
  • No commitment
  • Cancel anytime
  • Low risk: paid up front
  • Low exposure
  • Integrate into your system

The portion of revenue that doctors and hospitals must collect from patients has increased by 380% and growing, and the collection rate only around .15 cents on the dollar. As hospitals, doctors and practices are forced to collect more from patients – due to higher deductibles and coinsurance – more patients are filing for personal bankruptcy. It is a vicious cycle that seems to only get worse over time. But when McKinsey asked patients why they defaulted on their medical bills, the number one reason was not unwillingness to pay, but a lack of payment options. That’s why the first-ever underwriting model that can show medical systems a patient’s likelihood of paying before they receive their first bill. Providers can now see what payment terms they should offer to receive the maximum rate of collection possible… all by offering their patients repayment terms that they can afford – with an effective 0% interest rate.

  • Patients apply in less than two minutes – without affecting their credit.
  • Proprietary underwriting model evaluates each patient’s ability to pay in real time and recommends the payment terms with the highest likelihood of repayment.
  • Patients can access from your website, payment portal, or by email invitation from your staff.
  • Patients receive 0% payment plan options.
  • Pays you immediately, without recourse.
  • We handle all payment plan servicing

Hospital bad debt has risen by 30-50% or higher

  • 9 Hospitals filed for bankruptcy in 2017
  • 26 Non-profit Hospitals face bankruptcy in 2018.

We offer free analysis to determine the proper program for you Hospital, Clinics, Veterinarian Hospitals, let us help you increase your collection by up to 400% and help improve your bottom line, and offer real solutions to your patients!

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Qualifying for a loan?

We realize show difficult and tasking it is to find a lender that will provide the best loan for your business or personal use. 

Here are a few tips to help guide you to the best decision for your loan. 

Common mistakes when applying for a loan: 

  • Big effect for lenders are high usage of credit cards because business use them Vs. a loan. If possible reduce them before applying. 
  • Checking your FICO and SBSS score, banks and lenders look at FICO & generally want 600+, SBSS score which is the business credit score that SBA and banks will use. Low is 140, banks will not accept anything under 160, generally they line in the 190++ range.  
  • Is getting a loan and understanding what you really qualify for. Banks only approve about 10% of loans, general industry with alternative is around 40-60% approvals and have limited industries they serve. 
  • Finding a lender that matched your requirements and conditions, i.e.., startup, working capital etc. and being prepared with all the requirements and paperwork such as tax documents, personal financial statements, bank statements, etc. 
  • Cash flow on paybacks to the loans, lenders will match up your cash flow, bank deposits, credit card statements, too see what amount you can actually afford. 
  • Each time you apply for a loan and they turn you down then you have to start all over again. This really affects your credit score every time you apply. Lenders look at how many inquiries. when they see several they know you are shopping and have n=been turned down. 

What Lendingcapital provides: Our bQual report delivers your Small Business Credit Score (SBSS & FICO), your consumer credit score and full credit report, as well as a detailed fundability report assessing your financing prospects. And you may even be prequalified for a loan in real time. 

 About Us Clients nationwide turn to LendingCapital national funding platform with over 5000 lenders each year to identify the right funding options for their business projects and assistance in meeting their financing needs. 

LendingCapital’s bQual application provides business owners the tools and knowledge to understand their creditworthiness before applying for and committing to a loan. 

Use our bQual application and save time, energy, frustration, and Know the Score before you apply for a loan. 

https://lendingcapital.net  

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The Business of Budgeting your Business

The Business of Budgeting your Business

A budget? So, who needs a budget? You do-that’s who.

Unlike the government we actually need to balance our checkbooks. A budget allows you to identify spending habits, and allows your business (or personal) to make necessary adjustments and changes.

       Don’t just be in business to stay in business-be in business to grow your business

There are many areas to delve into for a complete business plan, for practical purposes we will stick to budgeting and a few essentials.

Check list: All of this and more inside my 16-award winning book:

“the sexy little book of finance III” 2 books in one-Personal & Business

  • Your budget should be on a spreadsheet in excel or another format so you can update.
  • Personal budget and Business information should be part of your routine.
  • Make copies of all serial numbers of vehicles, laptops, cell phones, or any other important information of equipment.
  • Copies of any operators or employees who have access to any equipment, vehicles, should have their drivers license and insurance so you have the information and can check any expiration dates.
  • Credit card numbers, expiration dates, and all employees who assigned a card
  • Record of all policies or contracts
  • Starting inventory and ending inventories (daily, weekly, monthly, and annually) or as deemed appropriate for your business model
  • Bank loans, all financial information stored & backed up daily on a private server or encrypted cloud program
  • ADD your own categories.

You should have a full marketing plan (in writing), websites with SEO search, game plan how are you going to market your product or services – internet-seminars-mailers-email campaigns-workshops-etc. If you are looking for money from a bank or lending institution all this will be necessary. Everybody thinks they can apply and get approved in 15 seconds with 3 little questions and nothing else to provide…SORRY, little things like bank statements, tax returns, personal financial statements (free on our website) just to mention a few things. You can see what else may be required on our website.

Now back to budgeting…

 

Month _________________                          Beginning Cash Balance $ ___________________________

Category                                 Estimated Budget                        Actual                       Difference

Revenue/1099                         _______________                  _______________      _______________

Accounts Receivable               _______________                  _______________      _______________

Investment Income                 _______________                  _______________      _______________

Interest Income                       _______________                  _______________      _______________

Other                                       _______________                  _______________      _______________

Total Actual Income:              _______________                                                      _______________

EXPENSES

Rent/Lease                              _______________                  _______________      _______________

Loans                                       _______________                  _______________      _______________

Accounts Payable                    _______________                  _______________      _______________

Inventory Purchase                 _______________                  _______________      _______________

Equipment Purchases             _______________                  _______________      _______________

Office Supplies                        _______________                  _______________      _______________

Cell Phones                              _______________                  _______________      _______________

Phone/Internet/Fax                 _______________                  _______________      _______________

Advertising                              _______________                  _______________      _______________

Printing                                   _______________                  _______________      _______________

Postage                                   _______________                  _______________      _______________

Payroll                                     _______________                  _______________      _______________

Payroll Taxes                           _______________                  _______________      _______________

Health Insurance                     _______________                  _______________      _______________

Repairs/Maintenance             _______________                  _______________      _______________

Automobile Expense               _______________                  _______________      _______________

Gas/maintenance                   _______________                  _______________      _______________

Auto Insurance                        _______________                  _______________      _______________

Business Insurance                 _______________                  _______________      _______________

Accounting fees                      _______________                  _______________      _______________

Retirement contributions        _______________                  _______________      _______________

Web hosting                            _______________                  _______________      _______________

Other                                       _______________                  _______________      _______________

Total Actual Expenses $ _________________________

Total Income________________ minus Total Expenses______________ = Ending Balance_______________

Be Prepared-Be Informed-Be Successful

The last time I got instant gratification – I got food poisoning

https://lendingcapital.net

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You Have the Right to Bear bridge Loans…

The right to bear bridge loans…

What?

bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.

Bridge loans are interim financing (short term) for an individual or business until permanent financing obtained. Money from the new financing is generally used to “take out” (i.e. to pay back) the bridge loan, as well as other capital needs.

The problem for businesses in particular is the length of time it takes to obtain permanent financing like term loans, credit lines, mortgages and so on. Banks can take up to 6 months or longer to approve certain types of loans. That does not help anyone who needs to move quickly for cash. They generally turn to the secondary market-quick cash, factoring loans, etc. The cost of money there is very high and generally creates cash flow problems on paying back daily or weekly ACH payments from their bank accounts.

Bridge loans are typically more expensive than conventional financing, to compensate for the additional risk. Bridge loans typically have a higher interest rate, points, origination fees, and other costs that are amortized over a shorter period, and various fees and other “sweeteners” (such as equity participation by the lender in some loans)  the good news is they are typically arranged quickly with relatively little documentation or lower credit requirements, and longer term more effective financing for the business or individual.

Bridge loans are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long-term financing. Bridge loans on a property are typically paid back when the property is sold, refinanced with a traditional lender, the borrower’s creditworthiness improves, the property is improved or completed, or there is a specific improvement or change that allows a permanent or subsequent round of mortgage financing to occur. The timing issue may arise from project phases with different cash needs and risk profiles as much as ability to secure funding.

A bridge loan is similar to and overlaps with a hard money loan. Both are non-standard loans obtained due to short-term or unusual circumstances. The difference is that hard money refers to the lending source, usually an individual, investment pool, or private company that is not a bank in the business of making high risk, high interest loans, whereas a bridge loan is a short-term loan that “bridges the gap” between longer term loans that can take 6 months or more to finalize.

Typical terms of up to 12 months 2–4 points or more may be charged plus origination fees- probably 2 points or more. A bridge loan may be closed, meaning it is available for a predetermined time frame, or open in that there is no fixed payoff date (although there may be a required payoff after a certain time). An average is around a total of 6 points (6%). Which is usually much less than factoring and other secondary market loans with lower interest rates.

A bridge loan is often obtained by developers to carry a project while permit approval is sought. Because there is no guarantee the project will happen, the loan might be at a high interest rate and from a specialized lending source that will accept the risk. Once the project is fully entitled, it becomes eligible for loans from more conventional sources that are at lower-interest, for a longer term, and in a greater amount. A construction loan would then be obtained to take out the bridge loan and fund completion of the project.

A consumer is purchasing a new residence and plans to make a down payment with the proceeds from the sale of a currently owned home. The currently owned home will not close until after the close of the new residence. A bridge loan allows the buyer to take equity out of the current home and use it as down payment on the new residence, with the expectation that the current home will close within a short time frame and the bridge loan will be repaid.

A bridging loan can be used by a business to ensure continued smooth operation during a time when for example one senior partner wishes to leave while another wishes to continue the business. The bridging loan could be made based on the value of the company premises allowing funds to be raised via other sources for example a management buy in.

A property may be offered at a discount if the purchaser can complete quickly with the discount offsetting the costs of the short-term bridging loan used to complete. In auction property purchases where the purchaser has only 14–28 days to complete long term lending such as a buy to let mortgage may not be viable in that time frame whereas a bridging loan would be.

Bridge loans have many advantages, the risk is generally on the lender. One big advantage even though the interest rate is higher for a bridge loan the payments are usually interest only and the payments are very low. Most will require up to 6 months interest in escrow in advance-but you won’t have payments for 6 months plus they give you an option of rolling in the fees into the loan or deducting from the proceeds.

An example of how it works:

You apply for a 5-15-year term fully amortized with reasonable rates (based on your credit worthiness) once the bridge loan is in place. It will take about 90-120 days or more to get that in place.

You might get an offer that looks like this: offer is 11% interest only for 12 months with a monthly payment of about $3,000. They’ll want 6 months of interest held by lender to apply to monthly payments (around $3k per month – so $18k total.  We can add it onto the loan for a $318k loan amount or they will fund $282k in proceeds out of the 300k.  You won’t have to make any payments for 6 months.)

Understanding your finances gives you the power to obtain the best terms, rates, and options available. Do your homework, check your credit and correct BEFORE you apply for a loan. Going to the bank directly is not a very good option for a business, almost 90% of all small business loans from banks are declined. That is why they make companies like ours-we find them for you – you will never find yourself.

Read our blog on all the good things you need to do to get a loan…Be informed

Frank

https://lendingcapital.net

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Marketing 101 1/2?

Delete, delete, delete, emails all day long. I also hate where I have to open envelopes full of half information and propaganda.

As a business owner like all of us, we are looking at attracting new customers and it becomes more and more difficult to do. Most Email blast are very annoying, so which ones are we likely to open? And are they legit? Do they even pertain to what we do?

Here is what I have found over the years that have been very effective for me.

  1. I use 5 x 8 postcard mailers, clean and to the point of what I offer, and I do research as to who could actually use my services or products (target marketing).
  2. Seminars I use 5 x 8 postcards with a four or five point agenda and one guest speaker. The agenda again should be aimed at your target market, provide some sort of dinner, snacks and coffee, and a time limit on how long your show will last.keep in mind-do not make your guest speaker the main attraction, it is you that must connect with your audience and potential customer.
  3. Seminars, I make it interactive, questions and answers, this keeps thee audience engaged, not the boring dry read from the scripts type of lecture. Avoid details on your products and services, instead talk about how your services help or have helped your customers.
  4. I only mailed around 100-150 invites with RSVP only, I had to I used to have the seminars on Tuesday, I had to add Thursdays because of the overflow.
  5. Demographics, most companies or individuals do not want to travel more than 10-15 minutes to attend a seminar. So do your homework and outline a circle radius from your hosting location and send invites within the 15 minute circle
  6. Have a sign-in sheet
  7. Have a handout with your information (single sheet) where they can pick a topic or product they are interested. Have them fill this out BEFORE they leave.
  8. Videos on your website
  9. Company logo, branding your name is crucial.
  10. Joining every possible place in the world: Facebook, LinkedIn, reddit, spyfu, moz, manta, yahoo, yelp, wordpress, wordtracker, tumblr, Alexa, mailchimp, opportunity, alignable, google one account, proringer, ezinearticles, and the list goes on…BLOG, BLOG, BLOG
  11. I wrote my book: Seminar Marketing & Sales Training for the Financial Professional Back in 2006, it still sells well, why? back to basics, it works.
  12. My author website: www.bookworm.tv

Find your niche, market to your niche and strength, keep it simple. Just think about what turns you on or off and apply that to your marketing strategy.

Best of luck…

https://lendingcapital.net

Frank

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Getting Business Loan is Easy…LOL

As an advocate for small to mid-size businesses (I am one) I give a word of caution when shopping for a loan. DO NOT shop 2 or 3 lending or credit institutions at once, every time you go they pull your credit and you get a “ding”.

  • Do your homework, Google can save you time and energy and money, shop on line for lenders who favor your type of business, i.e. best lenders for restaurants, machine shop, start up, poor credit etc. We actually do this for you with our vast pool of national lenders and partners.
  • Go to credit agencies where you can get a full and free credit report without “a ding”-like Credit karma (free). We will use this report to shop for you-without all the “dings”
  • Once you obtain your report see what you need to correct or challenge on any information in the report.
  • Have a game plan, why you need the money, how it will help grow your business, or start your business.
  • Correct BEFORE you apply, or at least have a reasonable explanation.
  • Find a lender who will initially accept the credit report you have provided to see if you can qualify with that lender. We do that with our 30 second app-we shop multiple lenders, in most subprime (non-bank) lenders once they turn you down that’s it.
  • Many lenders will have an on-line see if you qualify without affecting your credit (we do), it helps give you the direction for your next steps. The problem as stated above they are generally a single source self-funded group. So if they turn you down you need to start over-not good.
  • If you are generally under 5 years in business and walk into a bank, you are turned down before you even speak, and your officer of the month is probably still in training so …you know where that goes.
  • Make sure you have all your documentation in order (read our loan 101 on our website). Most get turned down because of paperwork. We underwrite our loans so we know what is missing and will help you obtain it. Plus, we know where to send the application, unlike most lenders we actually LOOK AT THE LOAN and YOU
  • Make sure you can actually pay back the loan, use our calculators to see what your payments and amortization schedule will be, adjust to meet your cash flow.

Simple steps to help you obtain the financing necessary for your business…oh, and read the fine print before you sign.

Fueling Business Dreams since 1996

Frank J. Eberhart, CEP® RFC® Author

www.Lendingcapital.net

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Before you apply for a Loan-READ THIS

Tired of being turned down? We are tired of turning you down – we want to approve everybody – however below is why (generally) businesses never get loans approved. 

Check your credit, make any repairs or statements of explanation for any negative items the items below are what you will need, be prepared, don’t try and cheat with false information or omissions, lenders do not like surprises. The more information you provide increases the likelihood of approval.

  • Apply for credit repair if not so hot (we offer these services)
    DO NOT apply to several banks at once, or reapply if turned down until after you have corrected why they turned you down.
  • Get your FICO/SBSS score (small business scoring service). You can get this at Nav.com free
  • SBA requires a minimum score of 140, most lenders will NOT provide a loan if SBSS score is under 160. The range is 0-300
  • Personal FICO score-0-840 most lenders want 650 or above-CreditKarma.com-free
  • Get a D-U-N-N-S number (Dun and Bradstreet-100 as the highest a score of 80 is good-free

Let us do the work-we have thousands of lenders to choose from-we can submit to many lenders without re-pulling your credit & know where to go-even if you were turned down, we have the paperwork to resubmit without pulling credit again.

  • Let us do the work-we have thousands of lenders to choose from-we can submit to many lenders without re-pulling your credit & know where to go
  • Most lenders want to see profit, what they really look at is good cash flow
  • Debt service, can you cover your debt with current cash flow with adequate reserves
  • Annual sales volume, where does your revenue come from, the more customers the less risk to the lender-explain how are you different than your competition
  • Most lenders will lend around 20% of your annual sales volume, less for credit lines
  • One of the important things is a financial statement
  • Initial Borrower Documents Need for all individual who own 20% or more of Ownership
  • Current Personal Financial Statement (All Borrowers)
  • Personal Tax Returns (Last 3 Years)
  • Current Credit Report w/scores (annualcreditreport.com) CreditKarma, etc.
  • Initial Business Documents Brief Overview of Ownership / Entities and Loan Requested
  • Business Tax Returns (Last 3 Years)
  • Current Balance Sheet YTD
  • Profit and Loss Statement
  • For commercial mortgages:
  • Old Appraisal (if available/applicable)
  • Current Rent Rolls (if applicable)

Get busy… https://lendingcapital.net

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Veteran Advantage SBA Loan program

We don’t always realize or appreciate the important work many veterans assume after they leave military service. Many start small businesses, creating jobs and opportunities for their families as well as for others. In fact, just shy of 10% of all small businesses are owned by veterans and vets are 45% more likely to be self-employed than non-veterans. I know, I am a veteran

As a veteran, (I am a veteran) you may be eligible for reduced fees (as little as zero!) for one of these loans.

Under the Veterans Entrepreneurship Act of 2015, up-front guaranty fees for SBA Express loans approved on or after October 1, 2015, through September 30, 2016, are set to zero for qualified businesses owned by a veteran and/or the spouse of a veteran.

And under SBA Veterans Advantage, fees for many 7(a) loans (other than SBA Express) approved through September 30, 2016, are reduced by up to 50%. Specifically:

The up-front guaranty fee for 7(a) loans (other than SBA Express) of $150,001 up to and including $5,000,000 approved to qualified small businesses (see below) will be reduced by 50%, as follows:

For loans with a maturity in excess of 12 months:
For loans of $150,001 to $700,000: 1.5% of the guaranteed portion;
For loans of $700,001 to $5,000,000: 1.75% of the guaranteed portion up to $1,000,000 PLUS 1.875% of the guaranteed portion over $1,000,000;
For loans with a maturity of 12 months or less: 0.125% of the guaranteed portion.
These fee reductions are available to businesses that are at least 51% owned and controlled by one or more owners who are in the following groups:

Veterans (other than dishonorably discharged);
Service-Disabled Veterans;
Active Duty Military service member participating in the military’s Transition Assistance Program (TAP);
Reservists and National Guard members; or
Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member;
or widowed spouse of a service member who died while in service or of a service-connected disability.
What are the interest rates on these loans?

Interest rates may be fixed or variable, but they cannot exceed the rates allowed by the SBA. Because the SBA ensures a significant portion of the loan, rates are often lower than those available elsewhere.

I am a vet and want to start a business. Where can I go for training and assistance?

A great place to start is with your Veteran’s Business Outreach Center. The mission of the VBOC is to “help create, develop, and retain veteran-owned small business enterprises.” VBOC’s provide training, counseling and mentoring and can help with creating a business plan, developing a feasibility study and more.

Your local Small Business Development Center is another terrific resource. And the SCORE Association, supported by the SBA, offers thousands of volunteers around the country who can help.

I am a service disabled vet, and my credit isn’t perfect. Will that stop me from getting a loan?

Don’t automatically assume you can’t qualify. You will generally need a minimum FICO SBSS score of 140 to pass the initial screening for loans under $1 million, however, so it would be a good idea to check that score as soon as possible. Currently, the only place to get this score is through Nav’s premium plus service.

What do I need to qualify for an SBA 7(a) loan?

There are some basic requirements that you—and any other owners with a 20% or greater ownership in the business—must meet to be eligible for an SBA loan.

You must operate (or plan to operate) a for-profit small business in the U.S or its territories.
You should have “skin the game.” By that, we mean lenders will want to see you have personally invested a reasonable amount in your business and tapped personal resources, if available.
The government doesn’t want to fund a business that hasn’t paid it back. In other words, you can’t be delinquent on other debts owed to the federal government such as federal taxes or federally guaranteed student loans. You also cannot have previously caused the federal government to incur a loss on a debt.
Your business can’t be in an industry that is not eligible for these types of loans, such as gambling or pyramid schemes. (Tip: Check that your SIC and/or NAICS code reported on your business credit reports is accurate. These codes categorize your business by industry.)
You won’t be eligible if you are currently incarcerated, on parole, on probation or a defendant in a criminal proceeding.
Do you qualify for an SBA loan? Check both your personal and business credit scores www.nav.com for your personal and FICO SBSS business score. SBA requires a minimum SBSS score of 140, most lenders set the score at 160.

Prepare Your Paperwork

Gathering and preparing the documentation many lenders will want to review when you apply for your loan.can be challenging. The SBA lists the loan document requirements on its website, but here is a summary:

SBA Loan Application
Personal Background and Financial Statement
Business Financial Statements (Profit & Loss, 1-year projected financial statement)
Ownership & Affiliations
Business Certificate/License
Loan Application History
Income Tax Returns (3 years, personal and business)
Resumes for each principal of the business
Business Overview & History, including an explanation of how the loan will help the business
Business Lease (if applicable)
Purchase Information (if purchasing a business, additional information is required)
Getting a loan can be complicated, and most get turned down for lack of proper documentation or missing information not because you were not qualified. As a general rule, once you are turned down by one lender the chance of getting approved by another is very small.

At Lendingcapital we make all this easy and have many approved preferred SBA lenders with our national reach. We have the ability to submit to many lenders without affecting your credit or alerting that we are shopping the loan. Your chances of approval with us increased dramatically so why not let us do the work for you and make sure your submittal package is correct the first time. Get approved today.

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What is the FICO® SBSS℠ Score? And why you need it for business loans

Small Business Scoring Service, (or FICO® SBSS℠ score) is one of the three main business credit scores. 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. Banks aren’t required to disclose that they use the FICO® SBSS℠ score and very little information exists about it online. More lenders are using it because it helps them make faster, more accurate lending decisions. This means they can make decisions in hours, not days.

In fact, the U.S. Small Business Administration (SBA) now uses the score to pre-screen it’s most popular 7(a) loans. If your score falls below their minimum threshold, you may not qualify for one of the most attractive—lowest interest rates—small business loans available. Starting at the beginning of 2014, all SBA 7(a) loan applications up to $350,000 are required to go through a business credit score pre-screen. To be clear, if you’re applying for an SBA loan, most likely it’s a 7(a).

Here’s how SBSS works:

  • SBSS scores can be used for term loans and lines of credit for amounts up to $1 million. If you’re applying for $1 million or less, chances are your lender will use SBSS to help make its decision.
  • Like personal credit scores, FICO SBSS rank-orders small businesses by their likelihood of making payments on time. The FICO score ranges from 0 to 300. The higher the score, the better.
  • The minimum score to pass the SBA’s pre-screen process is currently 140. But most lenders set their minimum score at 160.
  • The scoring is based upon personal and business credit history and other financial information. A strong history of business credit with timely payments to vendors and suppliers may help boost your SBSS score.
  • If you have derogatory or no credit history, it can take months or even years of positive credit activity to move your SBSS score significantly higher. It’s vital to build your credit and ensure it’s healthy before you need it.
  • Because businesses are not covered by FCRA protections, you can be denied business financing due to your SBSS score, and lenders are not required to notify you of the reason why.

How is the credit score calculated?

The short answer is the score is calculated by looking at personal and business credit history, as well as other business financial information, like the age of the business, the number of employees, financial data, such as revenue and assets. It truly is a global view of a business’s overall financial health!

If you have no business credit history and limited time in business, the highest possible FICO SBSS score you can get is 140. But to do so, would require pristine personal credit.

Banks and lenders can set up the SBSS model in many different ways, putting more weight on certain information, and less on others.

For example, it can put more weight on your business credit profile or more on your personal. It’s also a very “smart” business credit scoring model because it will automatically go from one business credit bureau to another, in whatever order of priority the lender prefers, until it’s able to generate a score.

So, if the lender prefers checking the Experian Intelliscore (business credit) as the default, the SBSS pulls in the Experian data set. If that report doesn’t offer enough information, it will automatically check another business credit score, like the D&B PAYDEX score. It could also then move on to your Equifax business credit data. If there’s not enough business credit data available, it will just use the personal credit data to calculate the SBSS score, along with your business financials.

Who uses the FICO SBSS score?

SBSS scores can be used for term loans and lines of credit for amounts up to $1 million. The FICO SBSS score is used by over 7,500 lenders nationwide to help them make lending decisions. Large banks include KeyBank, Huntington National Bank, PNC, RBC, USBank, Zions Bank, HSBC, Santander Bank.

The SBA uses it to pre-screen. The cutoff is 140. Banks will use it to pre-screen their loan applicants but they usually set their cutoff higher, typically around 160. If your score falls below that, they will look at your business as too much of a risk. Plus, banks don’t want to waste their time filling out lengthy SBA loan applications if they are confident you’ll get denied because of a low FICO SBSS score.

How can I improve my FICO SBSS score?

You can take steps now to start improving your FICO SBSS score, you need to take care of your personal credit and start building business credit. www.Nav.com  will help you take steps to improve both personal and business credit in one spot.

Lastly, you may just need time: Time to show solid business financial history that makes your business a less risky and better odds at obtaining the loan you need. Remember, banks and lenders do not like surprises, lack or false information, incomplete applications, or missing documents like personal financial statements and so on.

Read our loan 101 on our website…

Be prepared, be informed, be ready…get funded

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Update to the “yes” word

I had a call today that did everything in the world to get me to say “YES”

They were persistent, then rude, then eventually hung up. Once you say the “yes” word, they record it and use for authorization to purchase items or sell it to the black market.

I can’t say enough about the danger of these scams, phone scams, email, phishing etc.

Or this: 

Researchers at the security firm Kaspersky on Tuesday described an unprecedented case of wholesale bank fraud, one that essentially hijacked a bank’s entire internet footprint. At 1 pm on October 22 of last year, the researchers say, hackers changed the Domain Name System registrations of all 36 of the bank’s online properties, commandeering the bank’s desktop and mobile website domains to take users to phishing sites. In practice, that meant the hackers could steal login credentials at sites hosted at the bank’s legitimate web addresses. Kaspersky researchers believe the hackers may have even simultaneously redirected all transactions at ATMs or point-of-sale systems to their own servers, collecting the credit card details of anyone who used their card that Saturday afternoon.

“Absolutely all of the bank’s online operations were under the attackers’ control for five to six hours,”…

Get informed, get protected. The price you pay may be more than you can afford, mentally as well.