SBA Loans — How Many Types Are There?

The SBA, Small Business Administration, provides loans to small businesses through financial institutions such as banks, microlenders, and online lenders. These SBA loans are government guaranteed, meaning lenders will offer them to small businesses at low interest rates because the government has promised to pay back 85% of the loan in the event of default. The three most talked about SBA loan types are: 7(a) Loans: the most popular loan provided by the SBA, available to new and established businesses Read More

The Truth About Business Tradelines

If you’re trying to establish business credit, you’ve probably heard the term “tradelines.” You know they are important, but you’re not sure how to get them and how they can benefit your business. Here we’ll demystify them: What Is a Tradeline? A tradeline is simply industry-speak for “account.” They may include business credit cards, lines of credit, and loans. They also include information from vendors who report to commercial credit reporting agencies. For example, you may have an account with Read More

What Is a Good Business Credit Score?

Most of us are readily familiar with the general structure of consumer credit, but if you’re a small business owner, becoming familiar with business credit is important to your overall success. Establishing and maintaining good business credit will help you build valuable relationships with vendors, suppliers, manufacturers, and financial institutions that are important to operation. For business owners, a good business credit score translates into lower interest rates, better trade credit, and access to the financial support necessary to grow Read More

The Five Main Credit Scoring Factors

It takes more than on-time payments to build a good credit score. Understanding the five main credit scoring factors can help you boost your credit scores. These five factors help explain how information in your credit reports will be evaluated when your personal credit scores are calculated. The better you score on each of these factors, the higher your credit scores. The five main factors that affect your credit score are: Payment History (35%) Debt Utilization (30%) Credit History/Credit Age Read More

Payment History and Your Credit Scores

Whether you pay bills on time is the single most important factor that makes up your personal credit scores. It is also a major factor when it comes to your business credit, but there are some differences in the way it is evaluated. Here’s what you need to know. If you miss a payment on your personal credit card, car loan or mortgage by a few days, chances are it won’t hurt your credit scores. With personal credit reports, payment Read More

Debt Utilization and Your Credit Scores

While the amount of debt you owe is important, even more important is how you are managing your revolving accounts such as credit cards. Learn more now.

Credit Checks — How Credit inquiries Affect Your Credit Scores

Whenever someone accesses your personal credit reports or scores, the credit reporting agency that fulfilled that request must, by law, record that “inquiry” on your credit report. Because certain inquiries have been found to be associated with greater credit risk, they may affect your credit scores. In other words, recent inquiries on your credit reports can cause your credit scores to drop. That said, there are a few important things to keep in mind with inquiries. The impact of a Read More

Types of Credit Accounts & Your Credit Scores

Just like being able to demonstrate a variety of previous responsibilities at work can help you land a better job, consumers with the best credit scores tend to have a wider range of experience with credit. In other words, they don’t just have a single credit card or a car loan. Instead, their credit reports list a mix of different types of credit accounts (ideally paid on time, of course). Specifically, many credit scoring models are looking for a mix Read More

Credit History — How Your Credit Age Affects Your Credit Scores

When it comes to building strong credit scores, experience helps. Credit scores are designed to evaluate information from your credit history to predict how likely you are to pay on time in the future. To do that, they require information about how you’ve handled your accounts in the past. If you don’t have much in the way of credit references on your credit reports, you’ll have what’s called a “thin file” and it will be harder to earn a high Read More

SIC & NAICS Codes — What Are They & What Do They Mean?

The world of business comes complete with its own unique collection of terms, concepts and procedures, and both new and seasoned business owners may find that their knowledge is tested from time to time. Two of the terms and concepts that are often shrouded in a bit of mystery are SIC codes and NAICS codes.  Though these two terms and the digits that define them are frequently at work in the background, they may get lost among the more overt Read More