Page 142 - Winning The Credit Game Bundle (CK Patrick)

you don’t pay may be reported to credit bureaus and harm your
credit score.
Credit scores can be frustrating because the system used to
determine them is arbitrary and even a little bit secretive. For
example, no one knows exactly what formula the Fair Isaacs
Company (FICO) uses to calculate business credit scores.
However, we have a fairly reliable understanding of what
actions will help or harm your business credit report.
This chapter is about building an excellent credit report so
your business can obtain the best deals, interest rates, and loans
to help you grow.
The importance of a good credit score to a business cannot be
overstated. Just like your personal credit, your business credit
can determine things like:

Whether your business can be approved for business
loans, and how long the approval process will take.
What interest rates you receive on business loans—in
other words, how much money you end up paying the
lender for the privilege of taking out a loan.
How much money you are authorized to borrow to
grow your business.
Which landlords are willing to rent office space and
other properties to your business.
Whether investors are willing to invest money in your
business.
Whether major vendors are willing to do business
with you.

So who calculates business credit scores, and how are they
different from personal credit scores?

THE FICO SMALL BUSINESS SCORING SERVICE

The FICO Small Business Scoring Service, or FICO SBSS, awards
businesses credit scores of between 0-300. These scores are used

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