Fundera

DECEMBER 12, 2018

Credit scores have become a huge part of our lives. There’s no question a good credit score is crucial for so many varying parts of our lives, but the questions stands—what is a good credit score? What is the score you need to get the best credit card, mortgage, business loan , auto loan, etc.,

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Fundera

OCTOBER 31, 2020

If you default on your loan, the lender will seize and liquidate that asset to recoup the debt. However, they come with greater risk, because if you default on any of your loans, you risk losing one or multiple assets. However, if you default on any of the loans, collateral from the others can be seized as repayment.

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CreditStrong for Business

AUGUST 20, 2024

Filing for bankruptcy sets your credit score back significantly, but you can usually begin to recover within a few months and make meaningful progress within a year. Within two years, your credit score could be even better than before you filed. However, the road to recovery is long, and there are no guarantees.

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Fundera

MARCH 3, 2019

Delinquent Loan Definition. If you miss several payments or can’t make payments for an extended time (usually 90 to 120 days), the lender will place the loan in default and can start collection proceedings against you. Both delinquencies and defaults damage your credit. Your Credit Score Will Take a Hit.

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Fundera

MARCH 28, 2018

You probably know how important your credit score is when you’re applying for a small business loan. But with all of the surprising ways you can damage your credit, that number might come as a surprise when it pops up on your application. What Your Credit Score Is, and Why It Matters: A Quick Rundown.

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CreditStrong for Business

SEPTEMBER 6, 2024

Having definitive answers to these questions narrows down your potential financing options considerably. You can build credit, grow your revenues, and shop around before settling down on your best offer. Business lenders usually consider personal credit during underwriting, especially for less established companies.

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Due

JANUARY 27, 2023

Credit score. It is also important to maintain a good credit score in order to maintain financial health. The debt-to-credit ratio can be influenced by many factors including debt payments, credit utilization, repayment history, credit mix, and credit history. Numbers vary by lender.

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Fundera

FEBRUARY 18, 2016

There are risks involved with taking on debt, but those risks are definitely acceptable if you need capital to unlock the full potential of your business. Lenders, though, need to attend to their own interests, so they’ll rigorously vet the viability of any borrower to minimize the odds of a loan default. Inventory Financing.

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Fundera

JULY 31, 2018

For a more involved answer, we’ll give you a clearer definition of business loans vs. personal loans, then we’ll run through a few common scenarios businesses find themselves in when they’re seeking financing. Some factors lenders consider during the underwriting process include: The business owner’s personal credit score.

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Fundera

MARCH 2, 2019

Loan Default Definition. Loan default occurs when a borrower breaches a material term of their loan agreement. The most common reason for a loan default is that the borrower stops making loan payments. When loan default occurs, the lender can accelerate the remaining balance or take legal action against the borrower.

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Fundera

SEPTEMBER 5, 2018

Unless you have an absolutely perfect credit score—850—we’re willing to bet that you’d like to tack on a few points to that three-digit number. After all, your personal credit score is the number one factor that affects your ability to qualify for business financing and get favorable rates.

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tillful

NOVEMBER 8, 2022

If the borrower defaults, the asset can be seized and sold by the lender to cover the outstanding debt. For example, if your business gets approved for a $5,000 credit card, your credit limit would be $5,000. Credit score. A good credit utilization ratio is 30% or less. Collateral. Cost of goods sold (COGS).

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Fundera

SEPTEMBER 13, 2016

We’re talking about that 3-digit, all-important number when it comes to borrowing money: your credit score. Just like any traditional bank, Chase will consider your personal and business credit score closely. You’ll also have to pay an annual fee to have a line of credit with Chase. Chase cares about the numbers.

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Fundera

JUNE 13, 2018

Getting a Little More Granular with Long-Term Loan Definitions. In most cases, the SBA guarantees 75% to 85% of a loan if the borrower defaults, but the exact percentage varies according to the loan program and loan size. 550+ credit score. 600+ credit score. 9+ months in business. 50,000+ in annual revenue.

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Fundera

JUNE 5, 2018

That personal liability is why you’ll be prompted to fill in personal information, including your Social Security Number, on your business credit card application. Ultimately, if you repay your credit card bills in full and on time, then you have no reason to fear your card’s personal liability. Only authorize the users you trust.

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Fundera

JULY 23, 2018

That’s a very short period of time, and if you can’t pay back the money, the loan goes into default. If you miss multiple installment payments or are unable to pay back the loan within the time frame set out in your plan documents, the loan goes into default. No credit check required.

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SMB Commercial Lending

NOVEMBER 10, 2022

Your business will need to be profitable and have a good credit score. You’ll typically have less risk of defaulting on an SBA loan, and that may help you keep your financial record healthy. The business needs to meet the SBA definition of a small business. Keep a good credit score.

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Lendio

AUGUST 14, 2023

Because they know they’ll get paid even if you were to default, lenders are much more willing to be generous with you. Also, you should use the SBA’s size standards to prove your business meets the definition of “small” within your industry. The SBA’s incentive means lenders will even compete for your business.

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Fundera

SEPTEMBER 13, 2016

We’re talking about that 3-digit, all-important number when it comes to borrowing money: your credit score. Just like any traditional bank, Chase will consider your personal and business credit score closely. You’ll also have to pay an annual fee to have a line of credit with Chase. Chase cares about the numbers.

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Fundera

APRIL 25, 2018

As you might know, the higher your credit score, the more business credit card options you’ll have available to you. If you have bad credit, on the other hand, your options will be limited—but not zero. Because many consumers struggle with their credit scores. have deep subprime credit scores.

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Fundera

JUNE 6, 2018

To truly understand the cost of your loan, you’ll need to look at its simple interest rate vs. APR —something you should definitely master before signing any contract.). Just because a loan might not require a down payment, that doesn’t mean a borrower is totally off the hook if they default. No-Fee Business Credit Card.

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Fundera

JANUARY 13, 2018

For example, if you default on your loan for any reason, your lender can hire lawyers to gain a judgment in their favor. . With that in mind, the lender will likely—if not, definitely—want to have the remainder of the SBA loan guaranteed by the business and, failing that, the personal assets of the business owner.

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Fundera

NOVEMBER 29, 2019

Confession of Judgment Definition. A confession of judgment is a clause within a loan agreement that allows a lender, if the borrower has defaulted, to obtain a judgment against the borrower without following regular court procedures. The process starts when the lender finds that you’re in default of your business loan agreement.

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Fundera

MAY 26, 2016

But it’s definitely true that not every small business fits into the same lending and borrowing box. Some companies are best served by a simple business credit card , while others might be best suited to a line of credit or invoice financing. Taking on multiple types of loans, though, can speed up the process.

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CreditStrong for Business

OCTOBER 24, 2024

Improving your credit score can be challenging, especially when you’re trying to rebuild it after making some mistakes. Let’s explore what you need to know about CPNs, including how they work, why you should avoid them, and what to do to improve your credit instead of buying one. Unfortunately, that’s always a bad idea.

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CreditStrong for Business

SEPTEMBER 17, 2024

Popular First-Time Home Buyer Loans Minimum Down Payment Minimum Credit Score Maximum Debt-to-Income Maximum Income Misc Requirements FHA Loan 3.5% 660 45% 80% of area median N/A For more information on the credit requirements for a first time homebuyer loan, read this guide: What is a Good Credit Score to Buy a House ?

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Fundera

FEBRUARY 2, 2018

Unlike many small business loans , equipment financing is collateralized—meaning that whatever you’re buying with the funds can be repossessed if you default. So, for instance, if the borrower defaults on a loan for a custom machine, its resale value is lower, driving APR higher. Have at least a 600 on your credit score.

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CreditStrong for Business

OCTOBER 1, 2024

Jargon in the credit industry makes it difficult for many consumers to understand our credit system. As a result, nearly 40% of Americans report having no idea how their credit scores work 1. Having an authorized user tradeline in your credit report means someone else opened an account and added you to it as a user.

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Fundera

OCTOBER 26, 2016

Requiring a personal guarantee is a way that lenders protect themselves from the risk that you default on your loan. US Bank doesn’t set a hard standard for a minimum credit score you need to qualify. But as with most bank loan eligibility, the higher the score, the better. What’s a personal guarantee? Great question.

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Fundera

MAY 4, 2018

And loan stacking is bad for lenders, too, who might lose out to other creditors if the borrower defaults. And if the borrower defaults, the presence of multiple creditors can make it difficult for each lender to get their money back. If not, violating that clause in your contract could automatically send you into default.

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Fundera

JANUARY 7, 2016

To qualify for a loan from a big bank, small businesses need to have an iron-clad credit score, provide tax returns, business plans, and other documentation, and then wait several weeks for a decision. Short-term loans are, by definition, of limited duration, typically somewhere between 3 and 18 months. Limited Duration.

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Credibly

JULY 11, 2023

The general loan stacking definition is when you take on multiple business loans (or other financing like lines of credit, merchant cash advances etc.) When it gets to that situation, many businesses will end up defaulting on a loan payment, which will damage both business and personal credit scores.

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Fundera

SEPTEMBER 19, 2016

So, Bank of America will look closely at your personal credit score, your personal background, your resume, and your business plan. And while these small business loans will definitely be cheaper than a lot of other loan products out there, watch out for those extra fees. Interest rate doesn’t say it all.

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Fundera

MAY 30, 2018

Some of those common business loan requirements include evidence of positive cash flow, profitability, a long credit history, and good personal and business credit scores. will definitely need to be convinced of your business’s viability, and your seriousness as a small business owner. Business Credit Cards.

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tillful

MAY 31, 2023

While your revenue and credit scores haven’t changed, your application gets rejected. This can happen as the result of a credit crunch — also called a credit crisis or credit squeeze. What causes credit crunches ? When lots of lenders do this at the same time, you get a credit crunch.

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Fundera

MARCH 10, 2019

Let’s say your business defaults and cannot pay the SBA loan back. Limited Personal Guarantee – Limited personal guarantees set a dollar limit or agreed collateral value on what can be collected from your personal assets in the event that your business defaults on its loan.

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CreditStrong for Business

MARCH 28, 2023

Popular First-Time Home Buyer Loans Minimum Down Payment Minimum Credit Score Maximum Debt-to-Income Maximum Income Misc Requirements FHA Loan 3.5% 660 45% 80% of area median N/A For more information on the credit requirements for a first time homebuyer loan, read this guide: What is a Good Credit Score to Buy a House ?

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