Am I Fundable? How Your Business Credit Score Affects Your Fundability

David NayorSmall Business Lending

Small Business Credit ScoreSimilar to consumer credit scores, small businesses also have credit scores. In a like manner, a small business credit score furnishes lenders with fast, objective measurements of credit risks. The Small Business Scoring Service (SBSS) has made significant improvements to the business financial scoring process.

Now a major benefit of utilizing the SBSS is accelerating the funding process by allowing lenders to make transparent, objective decisions. For that reason, hundreds of American lending institutions currently use the SBSS score to assess the risk of potential borrowers. In fact, the U.S. Small Business Administration (SBA) requires it for its primary prescreening process of every small business 7a loan application under $350,000. Other non-SBA lenders use it as well for loan applications up to $1,000,000.

Lenders reduce substantial risks and add stronger predictive protection by considering a small business credit score as an essential element of the application packet. Faster determination leads to faster funding, something necessitated by the critical nature of small business financing cash flow requirements.

Because so many lenders are now using small business credit scores in making their funding decisions, it is important for borrowers to know their score before applying for a loan. SBSS scores are even available to potential borrowers who are not yet in business.

Small business credit scores equip lenders with an unbiased, practical and predictive model for measuring credit risk. The scores present financial organizations with a framework for producing and achieving prosperous credit decision-making procedures.

Along with prudent underwriting practices such as evaluating capability, quality, and collateral, lenders who incorporate the small business credit score into their decision making process can more efficiently and effectively fund small businesses.

Furthermore, small business credit scores lend a fairness component to the overall process by encouraging lenders to eliminate prejudices from their estimation and assessment of risk because the scoring formulas do not acknowledge age, ethnicity, nationality, gender or any additionally prohibited biases in ratings calculations. Additionally, the scores grant small investment borrowers with enhanced transparency into underwriting rules.

By creating a faster, fairer, more accurate and consistent loan process, the SBSS scores provide numerous small companies access to the capital they need.


You can find your Small Business Credit Score now at