Just like you have a personal credit rating, small businesses also have credit ratings. Likewise, a small business credit score provides business lenders a quick, objective analysis of the credit risks involved in the funding. Small business financing is exigent. Lenders require automated processes that consistently minimize the data, time, and expense of reviewing credit risk of applicants’. Small Business Scoring Service (SBSS), an industry leader in reviewing small business applicants’ credit risk, has made major development to the small business financial scoring process.
The chief benefit of employing SBSS service is that lenders can easily approved the right business applicants more rapidly, and allows them to make objective decisions. Based upon that, most US business lenders use the SBSS score service to evaluate the potential borrowers’ credit risk. Even Small Business Administration (SBA) uses the same SBSS service for the prescreening process of 7(a) SBA loan for each loan application under $350,000.
The SBSS service allows lenders to avoid significant credit risks and add stronger analytical safety by including credit score as an important factor of small business loan application process. Quick decision making guides to fast funding, that is generally a concern of every small business and its cash flow requirements.
As lenders now using credit scores as an important factor when lending to small businesses, it’s imperative for small business owners to be familiar with their credit scores before applying for a business loan. SBSS scores are also available to non-business borrowers.
The credit scores of a small business provide lenders with an impartial, realistic and projecting model for calculating credit risk. Small business credit scores demonstrate business lenders with a framework for creating and attaining affluent credit decision-making measures.
The practical loan underwriting practices of evaluating ability, quality, and guarantee, allow financial lenders fund small businesses effectively by incorporating credit score into their decision making process.
Moreover, small business credit scores add legitimacy to the overall funding process by supporting financial lenders to eradicate unfairness or any other illicit prejudices in their estimation and assessment of credit risk. Furthermore, the credit scores allow small investment applicants with improved precision into loan underwriting policies.
By forming a quicker, impartial, more precise and reliable loan process, the SBSS scores offer several small businesses to get quick access to the needed working capital to support their business operations.