Your Virtual Credit Manager

AUGUST 27, 2024

Just 25 years ago, credit executives were primarily concerned with financial risks — except of course for the Y2K bug that briefly stole the spotlight. Delinquency risk and the risk of default were the primary focus. Do you need help assessing customer credit risks? Now, the landscape has changed dramatically.

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Accounts Receivable (AR) Default Credit and Collections Cybersecurity 100

Lendio

OCTOBER 25, 2023

While you might have to do some research and take some extra steps to get approved, you can lock in an equipment loan with a less-than-perfect credit score. Here’s everything you need to know about securing equipment financing with bad credit. Can you get equipment financing with no credit check?

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tillful

FEBRUARY 28, 2023

Have you heard about the FICO Small Business Scoring Service (SBSS)? Like most business credit scores, the SBSS helps lenders and service providers understand the level of credit risk that businesses present. Here’s a closer look at FICO SBSS scores, why they matter, and how you can improve yours.

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Credit Scoring Credit and Collections Small Businesses Bankruptcy 98

Lendio

OCTOBER 26, 2023

It is important to point out that the lender’s risk is higher with an unsecured loan since it has no assets to take possession of in the event of a default. Yet the lender can still reduce its risk with this type of loan since there is an asset to seize and resell in the event of a default.

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Small Businesses Credit Scoring Credit and Collections Default 97

Fundera

MAY 12, 2016

Although you’ll probably have a good sense of whether you’ll be getting a loan based on your phone call, The Credit Junction will present you with a term sheet within 24 hours if they decide to fund your business, says Michael Finkelstein, CEO and founder. If so, they could derail your chance of getting a line of credit.

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Credit Scoring Credit and Collections Default 69

Fundera

JUNE 14, 2016

Check out your business and personal credit scores. You should know your business and your personal credit scores by heart. (If Websites like AnnualCreditReport.com and CreditKarma let you look up your personal credit score for free. If you don’t, look them up now.). Get your landlord on board.

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Credit Application Credit Scoring Credit and Collections Small Businesses 73

Fundera

MARCH 21, 2018

And that all boils down to the idea that the best candidates for local business loans present the lowest risk to the lender. Here, although a local bank is still granting you the actual financing—not the SBA itself—the government agency is partially guaranteeing the bank loan with federal money in case of default. Creditworthiness.

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Credit Scoring Bankruptcy Default Small Businesses 73

tillful

MARCH 8, 2023

Over the past two decades, the financial services industry has been gravitating towards a more comprehensive approach to credit risk assessment. Credit scoring models alone don’t tell the whole story, so companies are looking to alternative credit data to fill in the gaps. Here are a few examples.

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Fundera

AUGUST 25, 2016

Translating a final loan offer from Lending Club is the last step in the lending process, and one that requires some knowledge of the figures and fees they’ll be presented with. Good business credit can set you up for more generous lending terms in the future. When does Lending Club transfer your funds?

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Fundera

AUGUST 29, 2017

If you’ve researched traditional small business loans , you’re probably aware that you need to have a profitable business, a strong revenue history, and a robust personal credit score to qualify for the best options. But what if that doesn’t describe your business just yet? What is Asset-Based Lending? Reduced Personal Risk.

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Past Due Invoices Credit Scoring Default AR Aging 75

Fundera

NOVEMBER 7, 2020

Nicolosi says that alternative lenders mainly evaluate their short-term applicants based on credit score, sales, profitability, and time in business. 600+ personal credit score. Loan amounts can vary from $5,000 to $500,000 and some lenders will even accept a credit score as low as 500 for short-term bridge loans.

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Fundera

APRIL 26, 2016

Lenders also occasionally say “credit history” instead of character, too: that might give you some insight into what they’re essentially after. Borrowers with good character pay their loans back on time, every time, usually giving them better credit scores. The higher the score, the more reliable you’ve been, generally speaking.

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Credit Scoring Default Small Businesses Transactions 76

MNS Credit Management Group

AUGUST 31, 2022

Despite the fact that a business credit report can provide important information about a company’s financial health, many businesses aren’t fully aware of what it is. This business credit score shows that you have good money management skills and the ability to pay back any loans you obtain on time.

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Fundera

JULY 12, 2016

But on the other hand, it presents a major practical and financial dilemma: how can you purchase enough inventory if you don’t have the cash on hand yet? Collateral is essentially anything that can be turned into cash by the lender in the event of a loan default. If you default on the loan, the bank can empty your savings account.

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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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Default Credit and Collections Small Businesses Credit Scoring 77

Lendio

NOVEMBER 9, 2023

Lenders consider the following requirements when evaluating a potential small business owner for a business loan: Credit score Revenue Time in business Collateral/Personal guarantee Business plan Industry, geography, and company size Financial documentation 1. Start by paying bills promptly, as late payments harm your 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. As a result, they’ll need to tighten their credit standards and/or raise their interest rates to prevent further losses.

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Small Businesses Credit Scoring Default Credit Unions 52

Fundera

JANUARY 3, 2018

Both institutions will look at your personal and business financial statements, credit score, and want to know what the loan will be used for and what collateral you have to offer. Let’s walk through the SBA’s specific recommendations about how each of these items are presented and what needs to be included: Statement of Purpose.

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Credit Scoring Credit and Collections Small Businesses Default 69

Fundera

JUNE 22, 2016

If you default on your “loan” with a pawnbroker, your credit score won’t report it—but technically, this is a form of alternative lending. Alternative lenders, on the other hand, accept entrepreneurs with shorter times in business, lower credit scores, less proven revenues and cash flow…. More Frequent Repayments.

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Credit Scoring Small Businesses Default Transactions 76

CreditStrong for Business

AUGUST 16, 2024

Maintaining a strong business credit score is a long-term process. Yet when you’re first getting started, it may be possible to establish business credit quickly. You might be able to build business credit in 30 days or less with some business credit bureaus. You can register for a DUNS Number online at dnb.com.

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Credibly

JUNE 21, 2022

Whether it be for business expansion, marketing initiatives, inventory financing , or stabilizing cash flows during seasonal fluctuations, you’re more likely to be approved for a loan if you present potential lenders with specific needs and a targeted plan for the future. Credit Score. Why Get a Small Business Loan?

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Small Businesses Credit Scoring Credit Unions Credit and Collections 52

CreditStrong for Business

AUGUST 30, 2024

Solid revenues, profitability, good credit scores, and length of time in business are all driving forces behind what minimizes the credit risk for a lender. For example, lenders analyzing a business in the trucking industry would find that it’s a high-risk business because the sector has a default rate of 50%.

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Fundera

JUNE 13, 2019

Small Business Administration , which means that they have security for a significant portion of the loan in case a borrower defaults. First and foremost, you want to make sure that you’re presenting the best picture of your finances possible to a lender. Your credit score. Your P&L and balance sheet.

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Small Businesses Default Credit Scoring 68

Fundera

DECEMBER 2, 2015

If you’ve researched traditional small business loans, you’re probably aware that you need to have a profitable business, a strong revenue history, and a robust personal credit score to qualify for the best options. But what if that doesn’t describe your business just yet? What is Asset-Based Lending? High-growth Mode.

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Past Due Invoices Credit Scoring Default AR Aging 61

Due

OCTOBER 9, 2024

The distribution of wealth is more evident in Toronto, as more high-end transactions and custom designs to build homes in the city are becoming increasingly present in neighborhoods such as Lawrence Park, Rosedale, Forrest Hill, Hog’s Hollow, and Bridal Path, which have seen listings of $10 million or more.

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Fundera

JUNE 7, 2017

The property itself is used as protection against the chance that the borrower defaults on the loan. This is good news for borrowers who have poor credit scores—hard money business loans are not based on a borrower’s creditworthiness. Without a doubt, hard money business loans present a major risk to your business.

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Credit Scoring Default Small Businesses 45

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. If you default on a personal loan, your own assets are on the hook, so that’s a risk you’d need to be willing to take. Business Credit Cards.

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Due

MAY 5, 2023

In addition to increasing account balances, late fees can negatively affect consumers’ credit scores as well. Credit cards are one of the best ways to earn rewards and take advantage of zero-interest rate promotions. Focus on one credit card for credit scoring purposes, but keep them open for other purposes.

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Know-It Global

JUNE 14, 2023

One effective strategy that accomplishes both goals is offering trade credit. This is an arrangement where businesses extend credit to their customers, allowing them to purchase goods or services and pay at a later date. This involves evaluating their financial history, credit scores, payment patterns, and industry reputation.

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Fundera

JULY 7, 2017

If the merchant cash advance provider has reason to believe that you’ll probably be bringing in enough credit card sales to repay the merchant cash advance in full, then you might see a factor rate on the lower end of the aforementioned scale. In the end, the riskier you are to work with, the higher the factor rate you’ll get.

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Small Businesses Default Credit Scoring 79

Lendio

DECEMBER 7, 2023

Traditional banks, credit unions, and online lenders all have different merits and demerits. These may encompass your credit score, annual revenue, and years in business. Credit score – Most lenders require a personal credit score of at least 650. Higher scores can lead to better interest rates.

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Lendio

MARCH 21, 2024

Because inventory’s value may depreciate, offering a percentage of the amount mitigates the risk for the lender, especially if they need to sell your inventory off in the event that you default on your loan. Understand your financial statements: Be prepared to present comprehensive financial statements.

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Credit Scoring Credit and Collections Small Businesses Default 52

tillful

MAY 17, 2023

A derogatory mark on a credit report refers to a negative item such as a late payment, a loan default, a repossession, or a foreclosure. Unfortunately, derogatory marks cause your credit scores to drop and alert future creditors that you present a higher credit risk.

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Bankruptcy Credit and Collections Credit Reporting Agencies Credit Scoring 52

Fundera

OCTOBER 18, 2017

This is what makes the 7(a) loan program the default choice for most small business owners seeking funds through the U.S. That said, you can typically expect loans made available for up to $14 million for qualified borrowers with a personal credit score of at least 680. Purchasing inventory or general supplies. Steps to Apply.

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Fundera

JANUARY 16, 2019

The present condition of equipment and furniture versus its original selling price. Although rates and terms vary depending on your financials—like your personal credit score—as well as on the lender, you can usually expect a term of 1 to 5 years and interest rates between 7%-30%, for amounts ranging from $25,000 to $500,000.

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Credit Scoring Credit and Collections Transactions Small Businesses 104

Fundera

MARCH 27, 2018

The present condition of equipment and furniture versus its original selling price. Although rates and terms vary depending on your financials—like your personal credit score—as well as on the lender, you can usually expect a term of 1 to 5 years and interest rates between 7%-30%, for amounts ranging from $25,000 to $500,000.

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Credit and Collections Credit Scoring Transactions Small Businesses 104

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. When shopping around, check if cards require a security deposit.

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Credit Scoring Credit Unions Credit and Collections Small Businesses 52