Access Financing, Bank Rating, Become Bankable, Comparable Credit, FICO SBSS, Lender Compliance

The simplest way to think of becoming bankable is a table. There are four main components (legs) and without them, the becoming bankable table will fall. All four parts must be completed to become bankable. Loan approvals are done by computers using AI algorithms. They scan a business to see if it has four table legs or not. If any one of these crucial parts is out, lenders will may not even consider the business application they will not tell the owners why. If a business wants to access bankable working capital, it will need these 4 legs on its table.

The four legs of the becoming bankable table are:

• Leg 1 - Having all items of lender compliance completed.
  Lenders can scan for these in seconds via data APIs. The business either passes or it doesn't. Any single Lender Compliance item can keep a business from accessing financing. Lender Compliance items are things like having an entity which is an LLC or Incorporation, making sure it is in good standing, does it have a foreign corporation filing, it is the legal name or DBA creating a trademark infringement, does it have a Google business profile, is its NAP validation complete and is about twenty items in total that the business should have completely checked off before the lender’s AI checks on them.
• Leg 2 - Having a bank rating of at least a Low 5.
  Any lender’s computer algorithm can check a business' bank rating in seconds. If it is below L5 the business is declined. A bank rating is determined by business general ledger checking account average daily balance for the last three reporting statement cycles. The scoring system defines “Low” as the business checking account balance starting with the number 1, 2 or 3, “Mid” is the account balance starting with the number 4, 5 or 6 and “High” is the account balance starting with the number 7, 8 or 9. Then “Low 5” is where the number in the scoring, in this case a “5”, is where the business account average daily bank balance for the past three months had five digits or somewhere between $10,000 and $39,999. Having below a “Low 5” will indicate to most lenders that a business is at a very high risk of not having enough cash flow to be able to service their debt, therefore it is declined.
• Leg 3 - Having comparable credit.
  Does the business have a reporting credit tradeline that is close to the amount you are now asking for? Think about this in terms of personal credit. If personal credit reports only show $300 to $500 reporting credit accounts and then a lender is asked for a $50,000 loan that person are not likely to get approved are they? Well, the same is true in business lending. If a business is asking a lender for a loan or credit line of $50,000 or more and the business credit reports show that it has never successfully paid on a business loan or credit account of anywhere near that size, then it is highly unlikely that business will be approved. On the other hand, if the business already had $10,000 or $20,000 credit accounts showing a successful payment history, then the opportunity to get approved for $50,000 or more goes way up.
• Leg 4 - Having FICO SBSS business credit score of 160 or higher, 70 or higher with all 4 business credit reporting agencies.
  More than ten thousand business cash types of lenders have now moved to using the FICO SBBS as part of their underwriting approval algorithm. This includes banks, credit unions, large fintech lenders, the SBA and other business credit providers. FICO SBSS is the wave of the business lending future. To become “bankable” a business will need to develop at least a 160 FICO SBSS score if it wants to be approved. Having below a 160 score will most likely result in being declined.

Pulling credit reports costs lenders money:

Without spending any money, a business lender's computers can scan about 150 data points on a business in seconds. This will instantly let them see if the business has the four legs of being bankable. If not, while it might still get approved, the amount will be much lower, the term will be much shorter, and the rate will be much higher. If a business remains "unbankable" and does not complete the four legs to the becoming bankable table, then that will never change.