The SBSS score is generated by looking at a combination of personal and business credit history. It includes the business's history of paying vendors and lenders. This means a brand-new company with no business credit history will have a lower SBSS score since it relies on personal credit history alone.

A major reason why it is so important for businesses to establish business credit scores for your entity (using your business tax number EIN#) is that more and more lenders are using the FICO SBSS score to make lending decisions.

While a few small business lenders still only require personal credit scores, the FICO SBSS business credit score is becoming increasingly commonplace. Most notably, SBA loans are only available to businesses with SBSS scores of at least 155. Most other lenders who use the score require a minimum threshold of 160.

FICO® Small Business Scoring Service℠ (SBSS℠) is recognized as the industry leader in assessing the risk of US small business credit applicants. SBSS is delivered via the Fair Issac Company (FICO®) LiquidCredit® Service infrastructure.

How FICO SBSS Scores Are Calculated

SBSS scores are calculated by using a variety of factors, including:

· Experian Personal/Experian business credit score

· A business’s assets and liabilities

· The business’s cash flow/revenue

· How long a company has been in business

· Liens and judgements against the business

If you want more info on the importance of establishing your business credit and generating your SBSS score, contact us at: https://ibfconsultants.com/