November 5, 2009

Got a low FICO score?

Negative marks on your credit report don't necessarily preclude you from getting an SBA loan but your SBA lender will need your satisfactory explanation for each mark; how it happened and how it was resolved.  How you resolved past due accounts to meet your debt obligations speaks to your good character and will be noted in the underwriting of your loan request.  But below are red flags to keep in mind:
  • Recent bankruptcy and accounts presently in default or collection are most serious because they indicate your recent or current difficulty in meeting debt obligations.
  • Likewise for unpaid taxes and unresolved tax liens
  • Likewise for chronic, slow-paying accounts
      

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