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Fair Isaac & Co, or FICO, is a generic term for a credit bureau score and refers specifically to model used by FICO. There are other statistical models, however, FICO is the most widely known.
Credit scoring has become widely accepted by lenders as a reliable means of credit evaluation. The credit score condenses borrowers credit history into a single number. FICO and the credit bureaus don’t reveal the exact methodology for computing the numbers.
FICO scores vary from 375-900 points. The higher, the better. To get the best interest rates, you generally need to score 680 or higher. Someone with higher than 680 is considered to have “A” credit. If you score below 620, you will generally pay a higher interest rate on your mortgage and your credit is considered “sub-prime.” If your score is between 620 and 680, the lender may decide which category you belong based on factors such as income, assets, payment history, etc.
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Your credit score represents the creditworthiness of you as an individual or your business. A credit score predicts the likelihood that you will repay your debts.
Your business credit score determines your access to capital, rates on rental space, insurance and other business needs.
The score is comprised of data from the three major credit bureau.
Running a business involves a significant amount of investment. Business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, or a natural disaster.
Unless you have employees, business insurance is generally not required by law. However, it is common practice to purchase enough insurance to cover your assets.
If your business is an LLC or a corporation, your personal assets are protected from business liabilities but neither business structure is a substitute for liability insurance, which covers your business from losses.
Small Business Investment Corporations (SBICs) are privately-owned and managed investment firms that provide venture capital and start-up financing to small businesses. To be eligible for SBIC financing, your business must meet certain SBA size requirements for a small business.
Generally, the SBIC Program defines a company as "small" when its net worth is $18.0 million or less and its average after tax net income for the prior two years does not exceed $6.0 million. When you contact an SBIC, you'll need to present a professional business plan that addresses your company's operations, management, financial condition and funding requirements.
Not surprisingly, the pace of merger activity in 2008-09 has slowed dramatically as compared with recent years. Excluding a few megadeals, the M&A world has indeed been quiet. With a weak economy and an ongoing liquidity squeeze, most pundits expect that few significant deals will happen this year—and many think that is exactly the way it should be.
The prevailing view is that acquisitions are a luxury, to be pursued in good times and forsaken in the bad. The prevailing view is completely wrong. Deals are always risky, but doing nothing in a downtown may be the riskiest move of all.
Acquisitions and divestitures are key tools in the implementation of corporate strategy. Since corporate strategy needs to be implemented throughout the business cycle, in good economic times and bad, so must M&A. In fact, many of the most value-creating deals are done during economic downturns.