In a center piece article of the Wall Street Journal Franchising section, SBSS was recently covered in “Loans Are Flowing Again, But Not to All Sectors” regarding Franchise Financing. Below are some of the article’s most significant quotes explaining why knowing your small business score is important for the business loan application and approval process both for the borrower and the lender.
What is an SBSS Score & Where to Find Your SBSS:
“Since 1993, SBA underwriters have used a Small Business Scoring Service (SBSS) developed by FICO (formerly Fair, Isaac and Company), in San Jose, CA., to assess business borrowers, much like credit card companies use consumer credit scores. Starting this year, people seeking loans to expand or start a franchise can, for a fee, find out their own SBSS scores from BoeFly…”
Why Know Your SBSS Score:
“Prospective franchisees are intimidated,” says Jennifer Durham, VP of franchise development for Checkers, in Tampa, FL. “They fear the lending environment is still like it was four years ago, when no one could borrower money. If they learn their SBSS score is above the minimum (now 140), they will feel more confident about applying for financing.”
How Does BoeFly’s bQual Help?
“My franchisor suggested using BoeFly, an online service that matches up borrowers and lenders. Once my request was posted, the floodgates opened up and about 20 lenders contacted me right away. One of them was also local, Bank of Niagara, and they offered me SBA-guaranteed loans with 5.5% interest and awesome terms,” said Checkers franchisee Bill Nowak