Benefits of Automated Credit Scoring
No Business Plan
Automated credit scoring removes the need for a business plan;
however, you will probably still need to submit your financials.
Reduced Bias in Decision Making
Automated credit scoring reduces the subjectivity of the loan
process. For instance, a lender may have in his loan portfolio certain
business types that have failed. The credit scoring method would
remove any bias present in the decision-making process.
Fast Approvals
With less paperwork involved you are going to get a much quicker
decision. Some applications can be completed in one-page.
No Business Plan
Automated credit scoring removes the need for a business plan;
however, you will probably still need to submit your financials.
Reduced Bias in Decision Making
Automated credit scoring reduces the subjectivity of the loan
process. For instance, a lender may have in his loan portfolio certain
business types that have failed. The credit scoring method would
remove any bias present in the decision-making process.
Fast Approvals
With less paperwork involved you are going to get a much quicker
decision. Some applications can be completed in one-page.
How to get a Small Business Loan without a Business Plan
www.rebuildcreditscores.com
August 2007
www.rebuildcreditscores.com
August 2007
| Copyright RebuildCreditScores 2010 All Rights Reserved |
Links
Not so today. Information
technology is changing the way
we do business. Banking based
on relationship is becoming
unnecessary and irrelevant.
Many non-bank institutions have
entered the game, giving you
more choices. If you require a
loan of less than $100,000, you
may choose to allow the
computerized credit scoring
method determine your loan
approval.
technology is changing the way
we do business. Banking based
on relationship is becoming
unnecessary and irrelevant.
Many non-bank institutions have
entered the game, giving you
more choices. If you require a
loan of less than $100,000, you
may choose to allow the
computerized credit scoring
method determine your loan
approval.
Increasingly small business owners and start-up businesses are
bypassing tradition and obtaining small business loans and financing
without a business plan. It used to be an unwritten rule that if you
wanted a business loan or start-up financing for a new business you
had to have a business plan.
bypassing tradition and obtaining small business loans and financing
without a business plan. It used to be an unwritten rule that if you
wanted a business loan or start-up financing for a new business you
had to have a business plan.
More Resources
Business Opportunities
Home-based business
opportunities. Earn extra income
from your computer.
Bad Credit Business Loans
Find alternative funding sources if
you have bad credit.
Micro Business Loans
Do you need just a little cash to
grow your business try a microloan
from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
Home-based business
opportunities. Earn extra income
from your computer.
Bad Credit Business Loans
Find alternative funding sources if
you have bad credit.
Micro Business Loans
Do you need just a little cash to
grow your business try a microloan
from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
Normally, a traditional business loan may take several weeks, if not months, to approve. Some
lenders will give you a decision in a matter of days.
Improve your Personal Credit
Review your personal credit report before you complete the application. Some lenders may use
your personal credit history. Errors in your credit report can cost you. Correct any and errors
before applying and you will be ahead of the game. You may have to start the dispute process in
order to get errors off your credit report.
If your credit report shows legitimate negative items such as bankruptcy or late payments,
include a letter of explanation. The letter should explain the circumstances surrounding the
negative entries and how you have made improvements so it will not occur in the future. You may
also want to try a bad credit business loan if traditional banks turn you down.
Review Your Application
Provide complete and accurate information when using the automated credit scoring method.
Without a business plan, the lender will have no back-up information in case they want to review
the decision of the automated scoring method. Go over the application thoroughly before you
submit it.
Know Your Industry Codes
The lender may code your business by SIC codes. SIC, "Standard Industrial Classification" codes
is a United States government system for classifying industries by a four-digit code. An inaccurate
coding can alter the outcome of the approval. Insure a correct coding by accurately describing
your business.
Apply for approximately 10% more than you require
Assess the loan amount you need and then add an additional 10%. There are always
unexpected business expenses and having more than you need will allow you to cover those
expenses without taking a loss.
lenders will give you a decision in a matter of days.
Improve your Personal Credit
Review your personal credit report before you complete the application. Some lenders may use
your personal credit history. Errors in your credit report can cost you. Correct any and errors
before applying and you will be ahead of the game. You may have to start the dispute process in
order to get errors off your credit report.
If your credit report shows legitimate negative items such as bankruptcy or late payments,
include a letter of explanation. The letter should explain the circumstances surrounding the
negative entries and how you have made improvements so it will not occur in the future. You may
also want to try a bad credit business loan if traditional banks turn you down.
Review Your Application
Provide complete and accurate information when using the automated credit scoring method.
Without a business plan, the lender will have no back-up information in case they want to review
the decision of the automated scoring method. Go over the application thoroughly before you
submit it.
Know Your Industry Codes
The lender may code your business by SIC codes. SIC, "Standard Industrial Classification" codes
is a United States government system for classifying industries by a four-digit code. An inaccurate
coding can alter the outcome of the approval. Insure a correct coding by accurately describing
your business.
Apply for approximately 10% more than you require
Assess the loan amount you need and then add an additional 10%. There are always
unexpected business expenses and having more than you need will allow you to cover those
expenses without taking a loss.
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