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Use Caution Extending Credit to Startup Companies

Your Virtual Credit Manager

That’s why it is standard to ask on a credit applications the year in which the business was formed. Years in business is a critical factor in the assessment of credit risk along with number of employees, which can be a good proxy for sales volume, something private businesses are not always willing to disclose.

Bad Debt 100
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13 Surprising Factors That Affect Your Credit Score (and Why Small Business Owners Should Care)

Fundera

When a credit bureau computes your credit score, their job is to produce a number that estimates—given your past and current financial history—how likely you are to default on future debts. There are five notable components of a personal credit score. 13 Lesser-Known Factors That Can Affect You Credit Score.

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A Guide to Credit Decisioning

TreviPay

Its goal is to determine whether to approve, deny, or adjust credit applications. It involves examining a range of factors related to the borrower’s ability and likelihood of repaying credit. To banks, credit card companies, and many businesses, credit decisioning is a routine and vital part of work.

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What Is a Good Credit Score? (And How to Get One ASAP)

Fundera

Lenders and credit card issuers pull credit scores when they’re considering whether to approve a potential borrower or cardholder. Logically, lenders only want to work with the borrowers who pose the least amount of risk of defaulting on their debt. Very Good: 740-799. Good: 670-739. Fair: 580-669.

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6 Shortcuts to Build Business Credit in 30 Days

CreditStrong for Business

However, a secured business credit card might still help you reach your goal of building business credit quickly. When you open a secured credit card—business or personal—you make a deposit with the credit card issuer. The deposit protects the credit card company in case your business defaults.

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Can You Get a Loan Without a Job?

CreditStrong for Business

However, in 2009 legislators passed the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act), which might make qualifying more challenging. One provision of the Credit CARD Act requires that issuers of cards assess an applicant’s capability of repaying any debt incurred.

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Business Line of Credit vs. Credit Card

Lendio

Lines of credit are typically renewed over time , assuming the borrower’s creditworthiness remains in good standing. Business lines of credit can be secured or unsecured. With a secured line of credit , a borrower puts up cash or assets as collateral in case of default.