August 1, 2014 /MM-PressAdvantage/ —
Giralang — Until this year, FICO never revealed credit scores to companies, only to lenders who were looking at loan applicants’ documents. With the unveiling of the Small Business Scoring Service (SBSS) to small business owners, they now have the chance to know their credit score. Epsilon Business Credit, the online resource of business credit advice and education, helps business owners understand how an open FICO SBSS score benefits them.
FICO SBSS scores are useful in determining loan applicants’ creditworthiness. Used by the banking industry and Small Business Administration, FICO SBSS scores run between 0 and 250. FICO pulls information from different sources with its own liquid credit decision engine to decide a business’s credit score. Such information includes a business’s financial decisions and any debts owed on properties.
The fact that small business entrepreneurs can now learn their credit score impacts them in several ways. An FICO SBSS score is simple a way for lenders to gauge a loan applicant’s eligibility, while the score also lets the business owner know if his or her application qualifies. If a score proves the applicant has good credit, the applicant has a better chance of loan approval. The public availability of FICO SBSS score also increases efficiency within the loan application process. The standards are set for lenders to fairly decide which applicants best meet the requirements, particularly between similar companies. Open FICO SBSS scores lend to an honest application processing system.
There are some downsides to the FICO SBSS score, such as the fact that entrepreneurs may have to pay for access to see it. Creditera, a credit monitoring company located in Utah, has been one of the first companies to grant public access to their credit scores. Creditera charges businesses a monthly subscription fee to view their score. A low credit score could mean a loan disqualification for a business. However, the entrepreneur could view this as an opportunity to improve it. Such avenues include paying off their debts in a timely manner and frequently reviewing their credit reports.
About Epsilon Business Credit
Customers, financial experts, and business owners turn to Epsilon Business Credit for sound advice and educational information on subjects in Business Credit. Whether it’s Small Business Association (SBA) loans and application, or setting up business credit and small business credit cards, the blog constantly updates and addresses these issues and more. For more information about business credit, visit http://epsilonbusinesscredit.com.
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