Navigating the Banking Landscape for Entrepreneurs: A Guide to Securing Funding
As a Credit Specialist, I'm often asked by entrepreneurs about the best banks to consider when starting a new business. Here's a comprehensive guide to help you navigate the banking options and increase your chances of funding success:
Tier One Banks
-
Chase Bank - Uses FICO 8 credit scoring
Citibank - Uses FICO 8 credit scoring
Capital One - Pulls all three credit bureau reports
Tier Two Banks
-
Wells Fargo - Uses Experian FICO 9 scoring, offers a business credit card and line of credit
U.S. Bank - Uses FICO 9 scoring, offers convenience checks to liquidate card balances
PNC Bank - Uses Experian FICO 9 scoring
Tier Three Banks
-
Navy Federal Credit Union - Uses Experian FICO 9 scoring, but has an internal scoring system as well
Connector - Uses Experian FICO 9 scoring, is a Community Development Financial Institution (CDFI) with more flexibility
Baxter Credit Union (BCU) - Uses Vantage Score 3.0 from TransUnion
Vidiian - Uses TransUnion Vantage Score 3.0, similar to Vantage scoring
The key advantages of these Tier Two and Tier Three institutions are their willingness to work with entrepreneurs, even with limited business history, by offering business credit cards and lines of credit. Many also provide 0% interest promotional periods, allowing you to leverage the funding for various investments.
Remember, starting with the right banking relationships can significantly impact your ability to secure funding and grow your business. By understanding the scoring models and unique offerings of these institutions, you can better position your company for success.
YouTube Source: https://www.youtube.com/watch?v=PAm5IXW1Uqg
YouTube Channel: https://www.youtube.com/channel/UCwTiSgSSNPiNANoB2cREAAg
Related Content:
https://docs.google.com/forms/d/e/1FAIpQLScF6VKqzJ135eRvK1joVtIbCa0LXRxyeljM8LvPgiUgIh8j5w/viewform
https://www.tumblr.com/jamestanner0/751010923687411712/
https://calendar.google.com/calendar/event?eid=OTdkbzJvNXN1aXU2cmpyM2gwMDNwdnUzMHMgYXVkaWVzaGVja2xlcjExQG0
https://www.pinterest.com/pin/661888476515581940/
No comments:
Post a Comment