Most people are familiar with their personal credit score. The FICO score is used in over 90% of all underwriting decisions in this country. It's relatively simple to contact the three major credit reporting agencies to find out your numbers.
However, the FICO LiquidCredit Score is different and especially important for small business owners. Pay attention to this score. If you're below a certain threshold, or wondering how to get a business loan with no credit, continue reading!
What is the FICO LiquidCredit Score?
The FICO LiquidCredit score is a global score giving banks and other lenders a view of how both the owner and business perform in personal and business money management.
The score is a compilation of your personal credit history, your business’ credit history, and the financial standing of your company. These are figured into a number that falls on a scale of 0 to 250, used to assess credit risk.
Like other credit bureaus, your FICO LiquidCredit score looks at factors like whether you pay your bills on time, how much debt you have, and the different types of credit that have been extended to both you and your business. The financial history of your business and cash flow management are also considered.
How Can I Find My Score?
Unlike other business credit bureaus, FICO doesn’t give your liquid credit score directly. However, before you apply for a business loan, ensure you’ve done everything you can to increase the personal credit of all of the business owners, ensure your business’ Dun & Bradstreet report is clean (if you have one), and ensure you’re not late on any existing business loan payments.
Do you need extra funds for your small business? An SBA loan is the best bet for small businesses with low rates, long terms and low monthly payments. Visit SmartBiz Loans® today and discover in about five minutes if you’re qualified to apply for an SBA loan with one of our bank partners. Check out our great reviews on TrustPilot!