LexisNexis Small Business Credit Scoreįocusing specifically on small to mid-sized businesses, this credit score provides info on over 30 million US companies. Creditsafe also uses a color-coded system where green means low risk, yellow means moderate risk, and red means high risk. The higher the score, the less likely a borrower is to default or go bankrupt, while the lower the score, the more likely they are to default or go bankrupt. Just like Global Database, CreditSafe uses a simple 0 to 100 business credit score range to determine a potential borrower’s risk level. These variables include financials, trade payments, demographic, industry, legal filings, group structure, size of business, and more.” In their own words, “the Creditsafe credit score is a statistically backed model using key data variables proven to have an impact when a business fails. If anything has changed that could impact a borrower’s ability to pay.How likely a borrower is to make payments on time.How much credit a lender can feel comfortable offering a borrower.The likelihood of a business going bankrupt in the next year.Creditsafe Credit ScoreĪ Creditsafe business credit score addresses four key areas: ![]() High scores closer to 100 for low-risk borrowers are colored in shades of green, medium scores around 50 for medium-risk borrowers are colored in shades of yellow, and low scores closer to 1 for high-risk borrowers are colored in shades of red. To streamline things even further for lenders, a Global Database business credit score is color-coded with the “traffic lights” system. Higher scores indicate lower risk and vice versa. Similar to the Dun & Bradstreet PAYDEX score, scores range from 1 to 100. While it initially focused on sales and financial reporting, it now offers robust business credit reporting that analyzes multiple factors such as:Īs of early 2023, Global Database had business credit reports on more than 400 million companies in over 190 countries, making it highly comprehensive. Global Database offers a large suite of “company intelligence” products and data solutions. They also point out that many major lenders prefer scores even higher than 160, with 180 being the ideal minimum.įor small business owners who plan on seeking funding, they’ll want to pay close attention to their FICO SBSS credit score and ensure it sits at an absolute minimum of 140. However, the SBA often requires a score of at least 160 for serious consideration. And the higher the score is, the lower the risk they are to lenders.įICO SBSS scores range from 0 to 300, with 140 being the bare minimum needed for approval on SBA loan applications, according to the SBA 7(a) Guide. The primary factor for determining a FICO SBSS credit score is payment history where the stronger a borrower’s track record of making payments on time is, the higher their score should be. One common business credit score lenders look at outside of the big three is the FICO Small Business Scoring Service (SBSS) score.Īs its name implies, this credit score focuses on small businesses and is used by lenders when considering small business term loans, lines of credit, and SBA commercial loans up to $350,000. ![]() ![]() Here are five lesser-known, yet vitally important, credit scores you should know about. But they’re not the only business credit score providers. Equifax, Experian, and Dun & Bradstreet are generally considered “the big three” business credit reporting agencies.
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