Comprehensive Compliance Review

More on Step 4 Business Credit Bureaus


12. Bank Rating. This is not necessarily a step to be in compliance but an important tip as you open your business bank account or if it has been open for a while.  Your business bank account reflects how you manage your cash flow. Lenders want to know that your business cash flow is capable of handling the business debt and expenses on a consistent basis. Bank accounts with low average daily balances, or that show many NSF returned checks, can get your business loan applications declined. If a loan amount requires a $1,000 monthly payment then lenders need to see at least a “Low 5” bank rating. Your “Bank Rating” is based on your average daily minimum balance over the last 3 months.

Bank Rating Account Balance Bank Rating Account Balance
Low 4 $1,000 – $3,999 Low 5 $10,000 – $39,999
Mid 4 $4,000 – $6,999 Mid 5 $40,000 – $69,999
High 4 $7,000 – $9,999 High 5 $70,000 – $99,999

Bank Ratings Consist of Three Components…

1. The first component is your balance rating. This rating is your average minimum balance maintained in your account over a three (3) month period. $10,000 will rate as “Low 5”, $5,000 rates as “Mid 4”, $999 rates as “High 3”, and so on.  You need to maintain a minimum “Low 5” bank rating ($10,000) for at least 3 months. Unfortunately, without at least a “low 5” rating, most lenders will assume your business has little ability to repay.

2.  The second component is the bank rating cycle which is three (3) months. You’ll want to have at least a “low 5” for the three months prior to applying for larger loans.

3.  The third and final component has to do with how you manage the account. NSF (bounced) checks destroy bank ratings.  From this point forward, NSF checks are something you cannot allow.

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7 Steps to Our Ultimate Business Credit Building System:

[learn_more caption=”Business Questioner and Evaluation:”]

  • What type of business credit funding will I receive for my business? Cash or vendor lines?
  • How much funding will I receive?
  • How fast will I receive the funding?

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[/learn_more][learn_more caption=”Personal Credit Training”]

  • Personal Credit Repair
  • Comprehensive Budgeting

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[learn_more caption=”Compliance Process”]

  • Separate Legal Entity
  • EIN
  • Initial List Filed
  • Business Address (combine 4 and 5)
  • 411 Listing
  • Local Phone
  • E-mail
  • Business License
  • Web Site
  • Fax Number
  • Business Plan
  • Bank Rating
  • Business Classification Code

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[learn_more caption=”Business Credit Bureaus”]

  • D&B® set up
  • Steps to Report to D&B®, Corporate Experian® and Corporate Equifax®

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[learn_more caption=”Cash Funding and Vendor Lines of Credit”]

  • Funding Specialist
  • Funding Options
  • Starter Vendors & Applications
  • Vendors for Office Supplies, Marketing, Print & Applications
  • Vendors for Building & Industrial Supplies & Applications
  • Revolving Credit Accounts & Applications
  • Revolving Accounts for Office Resources & Supplies
  • Revolving Accounts for Building & Décor Supplies
  • Revolving Accounts with No Personal Guarantee
  • Additional Vendors

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[learn_more caption=”Business Credit Coaching”]

  • Certified Business Credit Coach
  • Contact information & Hours

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[learn_more caption=”Business Credit Training and Support”]

  • The 55 Secrets to Secure Business Credit (CA$H) for Your Business AND Keep
  • 100% Ownership of Your Company
  • The 29 Credit Score and Repair Secrets, Plus 10 Bonus Secrets to Save Your Home
  • CEO Scott Letourneau’s “Golden Rolodex” of Business Credit Vendors & Resources
  • Business Credit
  • Triple Overlap
  • Valuation
  • Joint Ventures
  • Raising Money
  • Incorporate Webinar
  • Business Credit Webinar
  • Call- in-days with Scott Letourneau

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