By Walter Nunez & Yhordan Serpentini
Many people do not know about the internal bank rating score that is used to determine who to loan and who to turn down for a lending product. Bank Rating is the total amount of borrowing capacity a business can get from the banking system based on each lender’s risk management policy.
Additionally, bank ratings range from low to high based on a few factors such as balances, account history, and credit experience, which are the most important for you to analyze.
- Balances – the average of $10,000 + for the past 3 months, positive cash flow, and consistency of deposits.
- Account History – the age of Accounts, type of accounts, and Insufficient funds/Overdraft history.
- Credit Experience – the Credit File history.
This information is a guideline and for informational purposes that vary from lender and region. I encourage you to engage in conversation with your lender to discuss what factors are most important to them regarding the type of lending you are seeking. It will help gauge if you are in a high probability of approval, if not what to work on to minimize disappointments. If you are interested in more information do not hesitate to comment or reach out to us.
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