7d • General discussion
Are you getting denied from business loans?
Did you know that if you are trying to apply for a business loan , that you may be getting denied because you aren’t generating enough money in your business?
Banks have a rating system to determine who will be approved or denied. They rate your business based on your average daily balance over 90 days.
Here’s how those bank ratings break down:
High 5 Rating: $70,000 to $99,999
Mid 5 Rating: $40,000 to $69,999
Low 5 Rating: $10,000 to $39,999
High 4 Rating: $7,000 to $9,999
Mid 4 Rating: $4,000 to $6,999
Low 4 Rating: $1,000 to $3,999
The rule of thumb is that businesses in the Low 5- High 5 Ratings has the highest chance of getting funding from a bank, because they show financial stability.
Unlike your personal credit score, you can get denied with a good business credit score, because banks are more interested that you can make you and them money, than just having a “clean record”.
With this new information, here’s your homework over the weekend:
- Calculate how much money you’ve earned over the last 90 days.
- Look at the ratings and see how your business rate.
- Determine how you are going to increase your revenue: Increase your price, get new customers/clients (how many do you need?), add another source of income, etc.
- Write the timeframe that you plan to achieve your new business rating.
- Execute!
Until next time,
Willita
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Are you getting denied from business loans?
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