Great Credit Scores Aren’t Always Enough—Here’s What You’re Missing You might have excellent personal and business credit scores—but that’s just part of the equation. If you really want to unlock substantial cash credit lines, you need to build out those credit profiles strategically. So, what’s the missing piece? It’s something many people overlook: Comparable Credit. Even with stellar credit scores, lenders still want proof that you, or your business, can handle larger credit lines. If your current credit limits are $500, $2,500, or even $5,000, and you're suddenly requesting $50,000, chances are it’s not going to happen. Banks typically offer 2x, maybe 3x your existing limits—if your credit files look solid. So before shooting for those high-five and six-figure lines, make sure your personal and business credit reports include a few larger credit lines already in place. Here’s how to do it: Every 6 months or so, ask your vendors and credit card issuers for credit limit increases, as long as you’re actively using them and paying on time. That $500 line can become $1,500. That $5,000 card? You can turn it into $15,000. This shows banks you’ve successfully managed higher credit amounts, and that’s what makes them comfortable lending you even more. Lenders want to see a track record of responsible repayment on larger limits before they’ll offer you the big guns. Yes, it takes time. But it works. And honestly, it’s the only reliable and legitimate path to high-limit business credit. So, build your foundation. Strengthen those files. Then go for the homerun.

Do you know what industry code Dun & Bradstreet or Experian Business Bureau has for your business? Business bureaus, banks, & other lenders will have on file a business code linked to your business. If you didn’t provide the information, they could have an incorrect high-risk code associated with your business. Every industry has an identification code. All plumbers have the same code. All hair salons will have the same code. The U.S. Government tracks Gross Domestic Product Revenue (GDP) using these codes and it makes it easier to identify the primary activity of the business on tax forms. The two main codes used are the SIC Code and NAICS Code. Standard Industrial Classification code and the North American Industry System Classification code. https://www.naics.com/search/ https://siccode.com/ Lenders, banks, insurance companies and business credit reporting agencies use the two business classification systems to determine if your business is a high-risk industry classification. This means that you could get a denial for a loan or a business credit card and it could be based solely on your business classification. Some codes trigger automatic turndowns, higher premiums, and reduced credit limits. The choice of Industry code is yours. There is nothing wrong with choosing the SIC code which will not get you automatically denied by lenders. My Favorite SIC/NAICS Codes: SIC code 8741/NAICS code 541611, Management Services SIC Code 8742/NAICS code 561110, Management Consulting Services SIC Code 8748/NAICS code 541618, Business Consulting Services. SIC Code 6531/NAICS code 531311 Residential Real Estate Management Remember when speaking with lenders or providing your code to the business bureaus, instead of actively being in your industry, you can use codes that indicate you are a consultant in that industry. Example: Instead of being a real estate investor (which is a high-risk industry), be a business consultant to real estate investors. SIC Code 8748/NAICS code 541618. Or provide management services to real estate investors SIC Code 8741/NAICS code 541611. If using a real estate business code, use SIC Code 6531/NAICS code 531311 Residential Property Management. A lower risk code.

Are you and your business ready to obtain business financing? Are you fundable? Whether or not you are looking for business capital today, one day you may be. You can’t wait until the last minute. You have to be ready. There are some basic steps you can take to be prepared for funding. You may need access to capital quick one-day. Why not be prepared? Basic things you need to do: 1. Review your personal credit score to see what lenders see. Get your scores up past 700 FICO on all three bureaus. Make sure your current credit utilization is below 30% and you have no major derogatory marks. Sign up for personal credit monitoring so you know exactly where you are at. 2. Gather your relevant current business documentation such as: Balance Sheet/Financial Statement Income Statement (P&L) Accounts Payable (if applicable) Accounts Receivable (if applicable) Inventory Report (if applicable) Last Two Years of Business Tax Returns (if applicable) Last Two Years of Personal Tax Returns Business owners should have all of this information readily available. Keep this updated. Review your balance sheet every month if not every week. 3. Is your business entity lender compliant? Do you have an acceptable business address reflected on the Secretary of States website? Is this the business address you are using on applications? Do you have an acceptable business email address, business phone number, business website, and are listed on directories? You need to look the way lenders want you to look. 4. Establish business credit files and scores with Dun & Bradstreet, Experian, and Equifax business bureaus. Obtain business credit scores by opening Net 30 or revolving vendor accounts, purchase needed products and services from Vendors that report positive payment history. Less than 10% will. This will increase your business credit opportunities. Sign up for business credit monitoring so you know exactly where you are at. 5. Establish a few all-important business-banker relationships. Open up business checking accounts with banks you will seek funding from down the road. It helps if you have personal credit cards with them as well. Banks are relationship lenders and making friends with your local BRM (Business Relationship Manager) will go a long way in obtaining larger credit lines.

The FICO score is used by 90% of all lenders. Currently, less than 10% of lenders use VantageScore. Do you know how scores are “weighted”? I know this is basic information, but I still speak with capital seekers that don’t know the difference between a FICO score and a VantageScore. They can’t tell me what Scoring Model their credit monitoring company uses. They can’t tell me what credit scores they actually have on all three bureaus. Some believe their scores are static, not ever changing. Some don’t know there are different versions of credit scores being used. Often, they are unaware you have different scoring models depending on what type of loan or line of credit you are applying for. Attached you’ll see the basic makeup of a FICO score and a VantageScore. Notice the "weighted" difference between credit utilization between FICO and VantageScore. As a business owner, you want to see what lenders will see BEFORE applying for credit. Be sure to monitor all three credit bureaus and review your tri-merged credit report at least quarterly.

It pays to have a relationship with banks you are targeting for credit lines whether it’s a business credit card or a business line of credit. Many banks and other financial institutions utilize “internal banking scores” in addition to the traditional credit scores from credit bureaus (like FICO or VantageScore) to evaluate the creditworthiness of their current clients. Comprehensive view: While credit bureau scores provide a general assessment of credit risk, banks can gain a more holistic and in-depth understanding of a client's financial health by incorporating their own internal data and insights. Behavior scores: Internal scoring models, sometimes called "behavior scores," leverage the bank's own data on a client's banking behavior, transaction history, loan repayment patterns within that institution, and more. Benefits for existing clients: These internal scores can be particularly valuable for managing existing accounts, determining credit limit increases, and offering relevant financial products (like mortgages, credit lines, or auto loans) to current customers based on their demonstrated financial behavior with that specific institution. Faster and more personalized decisions: By using internal data, banks can potentially make more timely and tailored lending decisions, especially when combined with alternative data sources and machine learning techniques. In essence, while traditional credit scores provide a general guideline, banks utilize internal credit scores to refine their risk assessments and offer more targeted financial solutions to their existing client base. If you have a personal checking account, a business checking account, savings account, or personal credit card in good standing with your targeted bank before applying you will probably get higher business card credit line offers. If you can, open business checking accounts, make consistent deposits for two to three months before applying for business credit card products even better results will be obtained.