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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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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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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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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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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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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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

JULY 6, 2016

That’s right: your personal ( not business) credit score matters more than anything else. In this credit score guide, we’ll take a look at why your credit score matters, how it affects your business financing, and what improving your credit can do. What’s a Credit Score? Quick Reminder.

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Fundera

FEBRUARY 6, 2018

Here are some business finance terms and definitions that will help you find your way to successful small business funding. Working capital, by definition, is the business’s cash on hand or instruments that you can convert to cash quickly. Business Credit Score. Credit Limit. FICO Score. Bootstrapping.

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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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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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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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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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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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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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Eagle Business Credit

MARCH 7, 2024

Exploring Working Capital Lines of Credit When managing the peaks and troughs of a business’s finances, a working capital line of credit is an indispensable tool for covering short-term operational needs. Definition and Purpose Working capital is the lifeblood of a company, fueling daily operations and short-term obligations.

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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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tillful

MAY 21, 2023

In case of default, the security deposit is available to the card issuer to cover the money owed. However, again, it is most likely that the entry level card for a credit card provider is a secured credit card. Doing so will most likely hurt your credit score. This is required to reduce the issuer’s risk.

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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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Lendio

NOVEMBER 14, 2023

This means that if a borrower defaults on their loan, the SBA will partially reimburse the lender for their losses. This guarantee reduces the risk for lenders and encourages them to provide loans to small businesses with lower credit scores or less-established financial histories.

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Due

JULY 25, 2023

That makes it clear to the credit bureaus that your card is active and being used. If your card has no balance for a few months, it is seen as inactive by the scoring models. At that point, the will no longer help your credit scores. Why mess up a clean credit report at all if the credit bureaus see that negatively?

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tillful

FEBRUARY 20, 2023

Affordable security deposit Credit-building business cards may offer credit lines in exchange for security deposits. For example, you may be asked to pay $500 to get a $500 credit line. The card issuer then holds your deposit just in case you default. What is the difference between personal and business credit?

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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

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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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

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

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

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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NorthOne

JULY 10, 2023

Definition of Debt Financing Debt financing involves borrowing money from external sources, such as banks or financial institutions, which must be paid back with interest over a specific period. This means that businesses with a solid track record and a good credit score are more likely to be approved for a loan.

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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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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

NOVEMBER 19, 2019

This means that this debt takes precedence over other outstanding obligations if you default on your loan. In the event of a default, venture capital lenders can seize control of the company or its assets, or force it to liquidate. Typical Terms for SBA Loans.

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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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Fundera

JUNE 8, 2020

Must be a “small business” according to the SBA definition. Have not previously defaulted on any government-guaranteed business loans. With this program, however, there’s much more leniency, with SBA guidelines allowing CA lenders to submit applicants with credit scores as low as 140.

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Fundera

AUGUST 18, 2018

This means that this debt takes precedence over other outstanding obligations if you default on your loan. If you apply for a traditional business loan, your lender scrutinizes your business and personal credit score, yes. But, most importantly, it’s risky for companies that aren’t in secure phases of hypergrowth.

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Fundera

MAY 16, 2018

They’re guaranteed to be repaid if you default, whether that’s through your agreed-upon repayment, or by repossessing the equipment proper. established businesses with years’ worth of evidence of profitability and good credit scores. What a strong candidate for equipment financing looks like: Credit score: 600+.

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Fundera

DECEMBER 12, 2018

The simplest charge card definition you’ll be able to find—a card with no spending limit—gets the idea across, but it also glosses over a fair amount of details. Of course, we will get into the details in due time by delineating the differences between charge cards and credit cards. Do Charge Cards Win Out Over Credit Cards for You?

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