LEVI KING, INC.
PENSACOLA, FLORIDA

FICO® LiquidCredit® Small Business Scoring Service℠ FICO’s Small Business Scoring Service (SBSS) rank-orders applicants by their likelihood of making payments on time. The score ranges from 0 to 300. The higher the score, the better. 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. The will be used for term loans, lines of credit, and commercial loans up to $350,000 from the Small Business Administration (SBA). The minimum score to pass the SBA’s pre-screen process is currently 140. How business credit scores are used Lenders and other creditors need a means of determining how well your business repays debts before they will approve you for financing. This is where business credit scores come in. Higher scores indicate to creditors that your business is more trustworthy, thereby improving the odds that you can obtain financing. Lenders can check your company’s business credit reports to get more detailed information about your business’s financial history, and business credit scores serves as shorthand evaluations. Here are three other ways you business credit scores are used: Your business credit report and score can determine how much financing you are able to secure. Determine your rates on business insurance. Some insurance providers evaluate a business owner’s credit as well as the business’s credit to determine rates on commercial insurance. Vendors and suppliers sometimes look at a business’s credit scores to decide how long of a grace period to give the business before demanding payment for goods and services. These terms are express in “net” terms—”Net-30” would mean your business has 30 days to post payment. Securing longer terms on your terms with suppliers is a great way to help even out cash flow. The importance of checking your business credit score As a business owner, you should review your company’s financial information on a regular basis, including your business credit scores & business credit reports. Your scores are fluid and can change over time. That’s why creditors tend to assess your creditworthiness on a continual basis. If you notice your trade credit scores are low, there could be an error in the business credit reports that caused an inaccurate calculation. It is also possible that your business does not have sufficient credit history to warrant higher scores. If you do find an error, contacting the credit agency that generated the score is key to getting a correction. If there aren’t any errors, you can still improve your business’s credit scores by making on-time payments and lowering the company’s credit utilization ratio, among other options, but it will take some time. Whether you’ve just started a business or been in the game for years, building a strong credit profile is essential to stay competitive. How can I get a free business credit report and score? ). But free business credit reports are harder another story. Many business credit reporting agencies require you to pay for the information they have on your business. Business owners can, however, access information about their Experian Intelliscore report and Dun & Bradstreet Paydex with a free Nav account. A provides business credit grades for each score as well as summary reports, your personal credit score from Experian, and free tools to help you build strong business credit. (No credit card required.) How can I improve my business credit score? No doubt, understanding how and when business credit scores are used can be confusing. Luckily, keeping your scores strong is actually simple. It’s a lot like taking care of your personal credit: Pay your business bills on-time or before they’re due. Open multiple credit accounts (business credit cards, trade lines, loans). Business credit reports Just as you’d view your personal credit report to check your financial history, the same information can be reviewed for your business. That’s because the minute you start a business, credit bureaus begin to develop a business credit report on your company. They do this by scouring public records and other financial data. Then, when you receive a business loan or line of credit — sometimes called trade credit — information about your payment history is compiled by one or more business credit reporting agencies, including Dun & Bradstreet, Experian, Equifax and FICO and turned into a business credit score. The basics of business credit reports Your business credit report only includes debts that are under your company’s federal tax identification number – also known as an employer identification number. Any personal lines of credit that you have are not listed on the report. This is true even for business credit cards that are still listed in your name. Information that is present on your trade credit report is voluntarily sent to the reporting bureaus from the businesses that own the debt. This means some lines of credit may not be listed on the report. How business credit is used When you apply for future business credit, potential creditors and lenders will view the report to determine your company’s creditworthiness. They will use the information to evaluate how well your business repays its debts, and negative marks can cause you not to get approved, or lower the amount of credit they will extend, or limit the terms under which that credit will be given. Besides lenders and creditors, several other parties may be interested in reviewing a business credit report. Business insurance companies, for example, assess a business’s report as part of the underwriting process. Customers and other businesses that are being considered for a joint venture or partnership may also review your company’s credit history before working with your business. Why separating personal and business credit matters Trade credit reporting is beneficial for helping you separate your business and personal finances, which is particularly advantageous in regard to credit. A business credit report offers a clear view into the financial standing of your business, providing you with a clean report of the company’s credit inquiries, lines of credit and delinquencies. This streamlined information makes it easier for fraud monitoring and for lenders to accurately assess creditworthiness (see the importance of