Business Fundability is essential in getting approved for business credit. You will not find “Fundability” on Dictionary.com, so don’t bother looking. Fundability is a phrase those of us in the lending industry have coined to describe how a business measures up in relation to the entire business lending and investing community. Fundability is not just about business credit. It includes several components that determine how the overall business is seen by lenders, investors, insurers, suppliers, and more. Basically, the business was worth the risk for the business owner, but is it worth the risk for the lender? The answer will increasingly be “yes” as the business fundability grows. By improving the fundability of the business, the business owner is truly improving the overall “health” of the business while greatly increasing the ability of the business to succeed now and in the future. The major components of Business Fundability include business bank accounts, business assets, business revenue, and the owners and their credit history. Every lender has approval guidelines they follow when considering a loan application. Here are a few of the main items that typically get a business denied when trying to build business credit and obtain financing: • No 411-directory assistance listing means no loan • Bank account balance rating of “low 5” likely means no loan • Having fewer than 5 trade credits accounts reporting to credit bureaus means no loan • Not having a credit file number will mean not getting that loan • Business credit scores below 70 usually mean no loan • The lender may insist the business has a debt coverage ratio of 5:1 or better or deny the loan • Or a business might be turned away due to any of a host of other reasons It only takes one reason for a lender to deny the application. And it is even tougher as many conventional banks offering funding require extensive documentation for a client to qualify.