Bank credit is the total amount of borrowing capacity a business can get from the banking system.
Banks have their own internal way of scoring and rating businesses credit worthiness. They do this through a system called bank ratings. It rates the creditworthiness of a business from the bank’s perspective.
Businesses can get more business credit fast. This is so long as it has at least one bank reference and an average daily account balance. The balance must be at least $10,000 for the past three months.
What lenders REALLY want to see is that a business has this $10,000 average balance. When a business has this, it yields a Bank Rating of Low-5. This means the business has an average daily balance of $5,000 to $30,000.
A business with a balance of $7,000 to $9,999 will net a lower rating like a High-
4. This will make it harder for that business to get approval for bank financing.
Here is the actual bank rating scale, so you can see where your business may rank:
- High 5, account balance of $70,000 – 99,999
- Mid 5, account balance of $40,000 – 69,999
- Low 5, balance of $10,000 – 39,000
- High 4, balance of $7,000 – 9,999
- Mid 4, balance of $4,000 – 6,999
- Low 4, balance of $1,000 – 3,999
Taking these steps will ensure you have an exceptional bank rating. That way, you can get approval for the most bank financing.
About the Author
Mark the President of Commercial Credit Access (“MyCCA”).
Mr. Sheehan spent the last 22+ years working in the equipment finance business helping SMB’s obtain financing to grow their business. He has worked in a variety of positions for banks and independent finance companies. Mark brings a unique wealth of credit and lending knowledge to help his customers improve their business credit and obtain financing.
Mr. Sheehan is the driving force behind the release of Commercial Credit Access powered by Fundability (“MyCCA Fundability”). MyCCA Fundability is the leading business cash and credit access system in the world today.
