Navigating the Banking Landscape: A Guide for EntrepreneursAs a Credit Specialist, I'm often asked by entrepreneurs about the best banks to start their businesses with. Here's a comprehensive guide to help you navigate the banking world and increase your chances of funding success: Tier One Banks
Chase Bank, Citibank, and Capital One are considered Tier One banks. They typically use the FICO 8 scoring model.
Tier Two Banks
Wells Fargo is a Tier Two bank, using the Experian FICO 9 scoring system. They offer easier access to funding and can provide a line of credit after as little as 6 months of business credit card usage. U.S. Bank is another Tier Two bank that uses FICO 9 and provides convenient checks for liquidating card balances.
Tier Three Banks
Navy Federal Credit Union and Connector are examples of Tier Three banks that use Experian FICO 9, with Connector being a Community Development Financial Institution (CDFI) with more flexibility for small and minority-owned businesses. BCU and Vidiian are Tier Three banks that use the Vantage Score 3 system, which also considers authorized users, rental payments, and utility bills.
The key advantages of these Tier Two and Tier Three banks are their easier access to business credit cards and lines of credit, often without the lengthy waiting periods required by larger institutions. Many also offer 0% introductory APR periods on their business credit cards, providing valuable cash flow flexibility. Remember, when choosing a bank, consider your specific needs, credit profile, and the institution's scoring model to maximize your chances of securing the funding you need to grow your business. 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/1FAIpQLSdXvdK1wSIOD9fLGv-PXqYKUWByyuIGqbP38RrBW_sf5Gp9yA/viewform https://www.tumblr.com/elizafereday/751012501780660224/ https://calendar.google.com/calendar/event?eid=cGppanBqMG44NTFzNmc2aTA5NGVhZGMzdDAgZWxpemFmZXJlZGF5QG0 https://www.pinterest.com/pin/628392954291254804/ https://www.linkedin.com/feed/update/urn:li:share:7198353985013993472 from Blogger https://elizafereday.blogspot.com/2024/05/the-top-10-banks-ideal-for-new.html
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