The credit score is one of the most important elements when lenders determine if there is viability to grant credit to an applicant, if it is better to reject it, or impose certain special conditions.
According to figures from the National Business Financing Survey (ENAFIN), it was estimated that of the credit requests made in 2021, 5%, equivalent to 5,304 companies, had at least one financing request rejected. Among the reasons is the bad credit history, which is reflected in the score, therefore, it is relevant to know it and know its importance.
What is the credit score?
The score or score is a numerical indicator, which is a parameter that is used by financial institutions to make an evaluation of their potential clients, according to how they manage their obligations in the field of their finances.
Although it may vary from entity to entity, the credit score usually ranges from 300 points to 850.
It should be kept in mind that the credit score is a dynamic element, and increases or decreases according to the behavior that the borrower has in his debt and capital management.
What is its importance and how does financing influence it?
The score is, for credit institutions, a sample of the financial health of a financing applicant, and it can be taken as the result of all the data contained in the credit report, in which they are synthesized and numerically show the risk that each applicant represents in the field of financing.
As already mentioned, it is used to determine if a company can be given a loan or not, and the conditions under which it can be provided, in such a way that it does not mean a problematic situation in the future for the lending entity.
It is a useful factor to know if a potential client has liquidity problems, and to predict the chances that an organization will meet or not meet its debt payment obligations, that it will fall into arrears, that it will be fulfilled or that it will definitely stop covering the debt contracted.
That is its importance, and in this way the credit score influences the granting of financing.
Credit Score Example
If an applicant goes, for example, to Pymes Capital, this entity, through CRiskCo’s technology, will quickly evaluate the applicant, and obtain a FinScore, which ranges from 300 to 850 points.
For example, if the applicant is around 600 points, perhaps he is a candidate for financing, but not with large amounts and perhaps with less favorable conditions than those who are closer to 800 points.
A reliable score, thanks to the best technology
In the case of Pymes Capital, we work with the CRiskCo SAT API for its online credit service. This interface is the one that manages said FinScore and presents high technology to prepare credit analyzes in just minutes, with the help of artificial intelligence, which identifies predictive patterns in applicants.
It is one of the most reliable tools for both lenders and borrowers, since it determines the appropriate financing that the latter can handle without problem, and in this way financial institutions are safe.
This results in Pymes Capital being a great option to request a fair, fast and secure loan.
If you want to have resources to expand your company and you have managed it with good performance, Pymes Capital has the online credit that your business needs.