Understanding Business Credit | OnDeck Small Business Financing

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Build a Strong Credit ProfileTo Increase Your Loan Options

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Ariele Krantzow

Marketing Content Manager

OnDeck Capital

Your Host


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Ty Kiisel

Small Business Educator

OnDeck Capital

Your Presenter


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The World of Small Business Financing Has Changed


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Non-Bank Lenders Deliver $Billions:OnDeck $6+ BillionPayPal $1+ BillionGoFundMe $2+ Billion

There Are More Financing Options Available Today than Ever Before


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Which Means, this Business that Wouldn’t Get Funded Before, May Find Financing Now

Local Restaurant

In Business for 3 Years

680 Personal Credit Score

$750,000 Annual Revenues

$80,000 in Net Profits

Has No Collateral


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Understanding How Credit Works IS CRITICAL

As your business grows beyond the first few months or years

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Every Small Business Owner in the United States has Two Credit Profiles


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Always Paying Cash Isn’t Good for Your Business

I’ve never needed to borrow money or

establish a credit line for my business. Isn’t that great?5 years in Business

Strong Cash Flow

Average Credit


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This Does Not Help Joe’s Business


NO DATA

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What Makes Up Your Personal Credit Score?


Payment History35%

Amount Owed30%

Length of Credit History15%

Type of Credit Used10%

New Credit Enquiries10%


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Why Do Lenders Want to Know My Personal Credit Score?


They’re trying to determine

your creditworthiness


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They Have 3 Questions:

Can you repay a loan?

Will you repay a loan?

What will you do if something unexpected

happens?


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It’s not the best way to

determine how you’ll meet

your business obligations

Your Personal Credit Score and Your Business Credit Profile Tell Different Stories


Your Personal Credit Score is

a reflection of how you meet

personal credit obligations


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Your Business Credit is More Than a Simple Score


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What Does Your Business Credit Profile Say About Your Business?

General information about your business like

your address and your industry

Information about the credit relationships

you have with your suppliers

Your payment history with any

current business loans and

business credit cards


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The three biggest credit-reporting

bureaus are:

Where Can You Find Your Business Credit Profile?


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The 2 Biggest Drivers That Influence Your Business Credit Profile


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Different Lenders Look at Different Information

Depending on the lender, they will review:

Your personal credit score

Your business credit profile

Your cash flow

Your annual revenue

Your time in business

Your industry

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Know Your Profile


5 Ways to Start Building a Strong Business Credit Profile

Regularly review your profile

Make sure it’s accurate

Correct any errors


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Don’t Use Your Personal Credit For Business Purposes



It won’t help you build your

business credit profile

It can hurt your personal

credit score


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Establish Trade Accounts With Your Suppliers



Vendor credit is relatively easy to get

A good way to build business credit


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Make Sure Your Suppliers Report Your Good Credit Behavior



If they don’t, it doesn’t help

you build a strong profile


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Use The Credit You Need And Stay Current



The single most important

thing to impact your profile


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A Strong Credit Profile is an Important Part of

Finding The Right Small Business Loan

Why am I looking

for a loan?

Which loan terms best fit

my situation?

How much money do I really

need?

What does my business credit profile look like?


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Non-Profit Micro-lenders

Loan Matching Sites

Online Lenders

Banks and Credit Unions

The SBA

SBA

A Good Credit Profile Isn’t a Guarantee, But it Does Give You Options


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The next webinar:

Wednesday August 23rd

When is Short-Term Financing Good for my Business?



Thank you.

Have any other questions?please email:

[email protected]


Understanding Business Credit | OnDeck Small Business Financing

Small Business & Entrepreneurship

Transcript of Understanding Business Credit | OnDeck Small Business Financing