Your credit score is an important part of securing funding for your business. Join the SBDC and Bankcorp South to learn about your score and what it means for your business.

• The Big Picture: Credit Reporting and My Business 
• The Impact of Personal Credit on My Business 
• Business Credit Reporting 
• How Lenders Evaluate Your Creditworthiness
• Credit Reporting and Business Operations
• Q&A

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Do you have a sound record of creditworthiness as indicated by your credit report, work history, and references? Together with your firm's business credit history, a solid personal credit rating is very important since the small business is typically an extension of the individual operating it. Most sources of financing or credit now rely on your 'credit score' (known as FICO) to evaluate your credit worthiness. (In fact, although a business plan is a recommended component of the loan request process, given the increasing importance of the credit score, it may now be possible to obtain loan approval in certain instances based on your score in lieu of a business plan). FICO is a numeric method that uses three digits to predict the likelihood of meeting your credit obligations. The score evaluates your credit payment history, number of open accounts, overall credit balances, and public records, including judgments and liens.

A FICO score approaching 700 will generally be looked upon favorably, while a lower score (e.g. below 650) will cause lenders to be increasingly cautious. Several sources will charge a modest fee to calculate your score, which is based on your credit report. Services like www.myfico.com will provide you with several report formats and notify you of credit inquiries that could affect your score.