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Demystifying the Small Business Scoring Service (SBSS) for SBA Loans
Manage episode 418250295 series 2894492
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The Investor Financing Podcast provides insights on securing funding for small businesses, focusing on the Small Business Scoring Service (SBSS) used to evaluate the creditworthiness of small businesses applying for SBA loans.
The SBSS is a credit scoring system that assigns a score between 0 and 300 to a business based on factors like personal credit history, age of the business, revenue, and industry.
A higher score indicates a lower credit risk for the lender, and the score is designed to provide a quick and standardized measure of credit risk. Other factors like the business plan, industry experience, and management team strength may also be considered by SBA lenders.
The SBA typically looks for a score of 155 or higher, but there are exceptions based on various factors. To increase the chances of securing SBA financing, small business owners can work on improving personal credit, building a strong business plan, choosing an industry with strong market demand, and demonstrating management expertise.
Commercial mortgage advisors can also help guide small businesses through the SBA loan application process. It is important to understand the guidelines of the SBA lender and the bank that offers SBA financing.
If you'd like to meet with Beau to talk financing, book a call here ( http://bookwithbeau.com/ )
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