FICO SBSS
Small Business Scoring Service
We all know that FICO is the industry standard credit score for personal credit and the score ranges from 300-850.
But most small business owners don’t know that their company has it’s own FICO that they’ve probably never seen before.
FICO SBSS, What is it?
The FICO LiquidCredit Small Business Scoring Service, or FICO SBSS for short, is the main score used by banks and other lenders to evaluate your company’s credit worthiness when seeking larger loans and lines of credit because it allows them to make quicker, more accurate lending decisions, usually within hours instead of days.
A quick Google search for more information on this score won’t return much. Most of the information out there is geared towards banks who maybe looking to start pulling it. However, this page will explain this score’s importance from a business owner’s stand point.
How is it Calculated
- A small business centered scoring model made by Fair Isaac Corporation that ranges from 0 to 300
- The main score used by most major banks and the SBA to pre-screen small businesses
- A combination of a business’s credit reports and the business owner’s personal credit
- THE most important factor for small businesses seeking loans or lines of credit up to $1 million
How is the Score Determined?
- The company’s age
- It’s number of employees
- Financial data, like annual revenue and assets
It’s main goal is to provide a global view of a company’s overall financial health. Without having established business credit, the highest score you can have is 140, and that’s if you have outstanding personal credit (800+ and high limit accounts). 140 is the minimum score required by the SBA to be considered for funding, and most banks will want to see at least 160. If you do the math, your business won’t qualify if you only have good personal credit without business credit. And even if you have amazing personal credit, the approval you’ll get won’t be anywhere close to what you were hoping for. It is an absolute necessity to have stellar business credit.
How to Monitor Your Business Credit Reports
Credit monitoring is one of the most essential aspects of building business credit, otherwise you’re just flying blind. Having access to your FULL business credit reports will reveal potential derogatory items, mistakes, or outdated information that may be holding your company back from getting the funding it needs and will be required to correct any of these items.
We recommend using Nav Prime
NAV is a low-cost solution for business owner’s to monitor their business credit reports with Dun & Bradstreet, Experian Business, and Equifax Commercial. They offer a free account, which displays a generalized letter grade on each report in place of the full score and a limited view of the information on the report, and a Prime account which gives you access to your company’s complete business credit reports.
Click the link to start monitoring your company’s credit TODAY!
Get Started with Nav Prime
So how do I improve my score?
Our main focus at TrueBuild is improving your company’s business credit. This is the often overlooked aspect of your company’s overall financial image, yet the most crucial. We talk to business owners on a daily basis who have settled for MCA and revenue-based loans with sky-high interest rates because they didn’t take the time to build their company’s credit first and are looking for better options. If you want to improve your SBSS score, you must build business credit!
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