Credit Suite Glossary

CREDIT SUITE
GLOSSARY
Credit Suite Glossary
Contents
Fundability................................................................................................................. 3
Fundability Core Principles............................................................................. 3
Business Financing.............................................................................................. 5
Business Credit Cards....................................................................................... 8
General Finance Terms: .................................................................................. 10
Financing Options/Categories: ................................................................. 13
Book of Business:................................................................................................... 15
Cash Advance:........................................................................................................ 15
Business Credit Report Terms ..................................................................... 16
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Note: This Partner Glossary is categorized. Terms are grouped together
by category. Not all terms are in alphabetical order.
Fundability
Fundability: A business’s current ability to get financing
Fundability Factors: Individual elements that directly impact each of

the core principles of a businesses’ fundability
Fundability Codex: A diagram of all the individual principles and

factors of Fundability [to explain the depth and breadth of the 125
factors of Fundability.]
Finance (Fundability) Blueprint- The actions and game plan to

improve fundability™ and connect a business to their best funding
option and source(s).
Fundability Core Principles

Business Foundation: is composed of Fundability factors. When
established correctly, they form a solid business foundation.
Business Credit Reports: Reports produced by business credit

bureaus highlighting a business foundation, reporting business credit
history, scores and ratings compiled to help lenders / business owners
access risk.
- Commercial Credit Report ^
- Corporate Credit Report ^
Consumer Credit Reports: Reports produced by consumer credit

bureaus highlighting a personal foundation, reporting personal credit
history, compiled to help lenders / owners access risk.
- Personal Credit Report ^
Application Process: The process of applying for financing; doing so

at the right time in the correct way with the right lenders.
Financials: This is a common term used in lending which typically

means tax returns, P & L, balance sheet, and bank statements. It can
also include personal financial statements even when a lender is
reviewing an application for business financing.
The 3 C’s of Business Financing
In general, to get business financing, you need one or more of the

following:
Collateral
Cash flow
Good personal and/or business credit
You can also get some forms of financing by selling a part of your
business and/or its control, such as through working with angel
investors.
And you can get some funding with none of these via crowdfunding
and/or grants. However, both of these means come with hefty time
expenditures, long odds for success, and often low dollar amounts.
Business Financing
Business Capital: The money or wealth needed to produce goods
and services. In the most basic terms, it is money. All businesses must
have capital in order to purchase assets and maintain their operations.
Business capital comes in two main forms: debt and equity
Business Financing: The act of leveraging debt, retained earnings,

and/or equity to acquire funds for business activities, making
purchases, or investing. This is a verb; it is the act of funding business
activities.
Business Financing Types
There are two types of business financing for business owners: Business
Credit and Business Lending. There is overlap among these types.
Business Credit: All credit available to businesses. (Trade Vendor

Credit, Business Credit Cards)
- Requires a PG
- Doesn’t require a PG
- Reports to business credit bureaus
- Doesn’t report to business credit bureaus
- Reports to personal credit reports
- Doesn’t report to personal credit reports
- Net or revolving credit
Corporate Credit: ^ same as above
Trade Vendor Credit Categories Traditional Lenders

Starter (Vendor) Credit Business Credit Cards
Retail (Store) Credit
Fleet Credit
Service Credit
Credit Cards
Vendor: A company that sells products or services to other businesses
Business Credit > Trade Vendor Credit > Starter Vendor:

Companies that issue credit accessible to businesses with little to no
business credit history.
Business Credit > Trade Vendor Credit > Fleet Vendor:

Companies that issue credit for fuel, repair, maintenance of fleets.
Business Credit > Trade Vendor Credit > Retail Vendor: Credit
issued by well known retailers to buy their products and services.
Business Credit > Trade Vendor Credit > Service Vendor: Credit
issued by a service provider to pay for their services only.
Business Credit > Trade Vendor Credit > Credit Card Credit:
Credit Cards issued by Trade Vendors.
Trade Vendor: A vendor that issues trade credit, and trades product
or services.
Trade Credit: Credit issued by Vendors to businesses for the purchase

of goods or services.
Vendor Credit: ^
Vendor Account: An account issued to a business with a vendor. It is

sometimes reported to the business credit bureaus.
Trade Account: ^ This is a common term but it is more accurate to

call this account a vendor account.
Business Trade lines: Vendor accounts reported by the vendor to

a business credit bureau. This information is included in a specific
location in a business credit report.
Establish Business Trade lines: The act of applying to and using

accounts that report to the business credit bureaus.
Trade Payment Experience: When a businesses’ payment activity in

relation to a new or continuously reported trade line is recorded by a
business credit bureau.
Business Credit Bureau: An agency that collects and researches

data on businesses and sells it for a fee to lenders and credit issuers to
make lending decisions.
Commercial Business Credit reporting agency: ^
Corporate credit bureau: ^
Business Credit History: The number of trade payment experiences

which are reporting on business credit reports. This includes payment
terms.
Business Credit Reports: The reports produced by business credit

bureaus highlighting a business foundation, and reporting business
credit history, scores and ratings. These reports are compiled to help
lenders / business owners access risk.
Build business credit profile: All information included on all your

business credit reports including all your business trade lines, business
information, and business credit scores.
Business Credit Tiers: All business credit sources who report to the
business credit bureaus divide into groups with similar underwriting
requirements.
Continuously Reported: A business trade line that is over 6 months

old that has reported multiple payment experiences
Newly Reported Trade lines: A business trade line that is up to 6

months old and has reported payment experiences.
Business Credit Cards

Business Credit Cards: A credit card is a payment card issued by a
vendor through or directly by a financial institution to users. Such a card
enables the business to pay a merchant for goods and services. This
is based on the business and / or the business owner’s promise to the
card issuer to pay them for the amounts plus the other agreed charges.
Traditional Lending:
Traditional Lender: ^
Bank: A chartered banking institution lends directly to businesses and/

or individuals.
Conventional Lending: ^
Alternative Lending (Finance):
Any lending practice happening outside a traditional banking

institution. Some non-bank lenders operate online using a peer-to-peer
model. This system, also referred to as marketplace lending, connects
business owners seeking capital with established investors willing to
provide it.
Fintech: Financial Technology (abbreviated fintech or FinTech) is

the technology and innovation that aims to compete with traditional
financial methods in the delivery of financial services. Fintech often uses
AI (artificial intelligence) to obtain documents electronically and quickly
evaluate those documents to make a fast approval decision.
Non-Bank Financial Institutions: (Not bank chartered)
Credit Unions
Community Development Financial Institutions (CDFI)
Industrial Banks
Private Money: Money from an individual or a group of investors

that comes in the form of debt or in exchange for equity. It is usually
accompanied by mentorship from the investor(s).
General Finance Terms:

Payment Terms:
Terms Financing Type

Net Business Credit
Revolving Business Credit and Lending
Installment Lending
Reward-based payments (i.e. Private Lending
reward-based crowdfunding)
Equity-based
Net Terms: Credit terms typically issued by vendors. Common terms

are 15,30,45,60, and 90. Payment is due at the end of the net term.
Revolving: This is a situation where credit replenishes up to the agreed

upon threshold, known as the credit limit, as the customer pays off debt.
It offers the customer access to money from a financial institution and
allows the customer to use the funds when needed. Revolving credit
may take the form of credit cards or lines of credit. Revolving lines of
credit can be taken out by corporations or individuals. It may be offered
as a facility.
Installment- An “installment loan” is a broad, general term referring to

the overwhelming majority of personal and commercial loans extended
to borrowers. This includes any loan that is repaid with regularly
scheduled payments or installments.
Reward-based payments (reward-based crowdfunding): The

amount paid is contingent on the successful closing of a transaction
otherwise covered under these rules
Credit Line- A representation of the amount of money extended from

a vendor or lender available to a business on a net or revolving basis.
Both Credit Cards and Lines of Credit use Credit Lines
Debt: An obligation that requires one party, the debtor, to pay money
or other agreed-upon value to another party, the creditor. It is a
deferred payment, or series of payments, which differentiates it from an
immediate purchase
Credit: In general, an agreement between a credit issuer and a

borrower, who promises to repay the issuer at a later date—generally
with interest.
Financial Institution: A financial institution (FI) is a company

engaged in the business of dealing with financial and monetary
transactions such as deposits, loans, investments, and currency
exchange. Financial institutions encompass a broad range of business
operations within the financial services sector. They include banks, trust
companies, insurance companies, brokerage firms, and investment
dealers
Lender: Company or individual that lends funds in anticipation of being

paid back.
Creditor: An entity (person or institution) that extends credit by giving

another entity permission to borrow money intended to be repaid in
the future. A business that provides supplies or services to a company
or individual and does not demand payment immediately is also
considered a creditor. This is because the client owes the business
money for services already rendered.
Borrower: A person or company that has received money from

another party with the agreement that the money will be repaid
Bank: a financial institution licensed to receive deposits and make

loans. Banks may also provide financial services such as wealth
management, currency exchange, and safety deposit boxes. There are
several different kinds of banks including retail banks, commercial or
corporate banks, and investment banks. In most countries, banks are
regulated by the national government or central bank.
Credit Card Issuer: A bank or credit union that provides a credit card
directly to the end user, such as a consumer or a small business owner
Personal Guarantee - An individual’s legal promise to repay credit

issued to a business for which they serve as an executive or partner.
Providing a personal guarantee means that if the business becomes
unable to repay the debt, the individual assumes personal responsibility
for the balance. Personal guarantees provide an extra level of
protection to the creditor/lender who wants to make sure they will be
repaid.
*Note, a credit check always accompanies a personal guarantee. (No

Credit Check is used in place of saying bad credit)
Cash Advance: A short-term loan from a bank or an alternative

lender. The term also refers to a service provided by many credit card
issuers allowing cardholders to withdraw a certain amount of cash.
Cash Credit (refrain from using this phase as its true definition is more
in line with overdraft protection). Can be misleading.
Secured Financing - Credit issued that requires the security of

collateral
Unsecured Financing - Credit issued that does not require the

security of collateral
Collateral - a borrower’s pledge of specific property to a lender, to

secure repayment of a loan or credit
Raise Capital - Running a business requires a great deal of money.

Capital can take different forms, from human and labor capital to
economic capital. Financial capital is represented by assets, securities
and cash. Two types of capital that a company can use to fund
operations are debt and equity.
Creditworthiness - This is how a lender determines if you will default

on your debt obligations or how worthy you are to receive new credit.
Cash Flow: the net amount of cash and cash-equivalents being

transferred into and out of a business
Securities: tradable financial instruments used to raise capital in

public and private markets. There are particularly three types: equity,
debt, and hybrids which combine aspects of debt and equity
Financing Options/Categories:
Angel (Seed) Investing (private money only): An individual or
group providing capital for a business start-up, usually in exchange
for convertible debt or ownership equity. Angel investors usually give
support to start-ups at the initial moments and when most investors
are not prepared to back them.
Crowdsourcing: a sourcing model in which individuals or

organizations obtain goods and services, including ideas, voting, micro-
tasks and finances, from a large, relatively open and often rapidly
evolving group of participants.
Crowdfunding: The practice of funding a project or venture by

raising small amounts of money from a large number of people,
typically via the Internet. It is a form of crowdsourcing and alternative
finance. Each platform defines their rules and payback terms.
Peer to Peer Lending: P2P Fintech lending companies connect

borrowers directly to investors rather than banking institutions.
Typically financing comes in the form of a business loan that you have
to pay back within the agreed term including interest.
Venture capital: (traditional or alternative): a form of private equity

financing that is provided by venture capital firms or funds to startups,
early-stage, and emerging companies that have been deemed to have
high growth potential or which have demonstrated high growth.
Equipment:
- Lease-Back Programs
- Purchase
Securities-based Financing: making loans using securities as

collateral.
^Securities Based Lending
SBA:
-SBA Express
-SBA 7a
-SBA 504
Revenue-based Financing: A type of business financing where the

lending decision is made primarily based on how you manage your
business bank accounts.
-Merchant Cash Advance
-Merchant Card Credit
-Revenue Cash advance
401(k) and IRA Financing: a type of business financing where you

use a 401(k) or IRA as collateral to get a loan or credit line with a low
interest rate.
Micro Lending: Money lent in small amounts to impoverished

individuals and groups unable to get loans from mainstream banks.
Book of Business:
Business Credit Cards: A credit card is a payment card issued to
users to enable the business to pay a merchant for goods and services
based on the business and / or the business owner’s promise to the
card issuer to pay them for the amounts plus the other agreed charges.
Cash Advance:
Credit Line Hybrid:
Umbrella term referring to applying for multiple business credit cards

in a specific sequence and a certain way to increase the potential for
approval and maximize approved credit limits. Some will offer 0% rates
and cash out capability.
Credit Card Stacking- ^
Finance Medium
Finance Medium: The form in which debt is structured for repayment.

Typically aligns with collateral type or use of funds.
Net
Line of Credit - A credit facility extended by a bank or other financial

institution to a government, business, or individual customer. It enables
the customer to draw on the facility when the customer needs funds.
-Interest is charged the date the funds are drawn
-It is typically renewed annually
Credit Card
-Interest is charged at the end of the billing cycle
-It is typically renewed annually
Term Loan
Lump Sum (Notes and Equity Sale?)
Business Credit Report Terms

Bank rating: A numerical rating which government regulators assign
to banks . It is designed to predict the likelihood that a bank will fail.
There are many proprietary rating models from both public and private
organizations.
Bank rating: An internal credit score used by major banks to

determine if you should be approved for credit and financing.
Business Credit Building: Improvement in all five Fundability Factors

to increase access to capital.
Business Credit Inquiry: When a creditor pulls business credit

reports to underwrite. However, listed inquiries don’t currently impact a
business’s ability to get approved.
Business Credit Monitoring: Monitoring services provided by

business credit bureaus or data aggregators.
Business Credit Reports: Reports produced by business credit

bureaus highlighting a business foundation, reporting business credit
history, scores and ratings. They are compiled to help lenders / business
owners access risk.
Business Credit Risk Score: Insights into the commercial customer

lifecycle to identify fraud and financial risk, general creditworthiness,
and potential for failure.
Business Credit Risk Score: The primary business credit score

offered by Equifax Commercial.
Business Failure Score: a portion of the business credit risk score

focused primarily on the insights which cause instability within a
business. Often this is a more detailed insight than the primary business
credit risk score.
Business Failure Score: Each of the three major reporting agencies

offers a similar score. It depicts your business’s risk of failing in the next
12 months.
Business Finance Suite - Credit Suite’s all in one business credit and
financing solution contains access to business valuation, a fully vetted
marketplace of products and services, step by step instructions on how
to build your business credit and more
Business Identification Numbers: These are numbers such as

BIN from Experian and D-U-N-S from D&B that the business reporting
agencies assign to each business within their database.
Company Details Section: Section of a business credit report

that includes company information, such as business name, address,
secretary of state details, ownership, industry, etc.
Credit Check: When a lender looks at personal or business credit

for information and uses the data collected to make an underwriting
decision.
Credit Image: this is the fundability foundation for users. Previously

called credibility
Credit Limit Recommendation: Each of the major reporting agencies

provides a recommendation of how much credit they believe you
should be issued.
Credit Limit Recommendation: Specific to Dun and Bradstreet
Credit Profile: Overall summary of an individual’s or business’s

credit reports
D&B Rating: A credit score issued by D&B to evaluate the

creditworthiness of a business, considering financial data and number
of employees.
Data Aggregation: The function of compiling data from multiple

sources sources into one report
Decline: When a credit issuer or lender doesn’t approve a request for

credit. At times the applicant is required to wait a set amount of time
before they can reapply. The amount of time is defined by the credit
issuer or lender. Declines don’t impact an individual or business’s credit
reports. Declines aren’t recorded. Inquiries can affect the ability to get
approved when it comes to personal credit, not business credit. See
definitions of Personal credit inquiry and Business credit inquiry for
more detail.
Delinquency Predictor Score: from Dun & Bradstreet, this score

predicts the likelihood your business will go seriously delinquent on your
debts in the next 12 months.
Delinquency Score: The business reporting agencies offer scores that

predict the likelihood your business will go delinquent in the next
12 months.
Federal Deposit Insurance Corporation (FDIC): provides a bank

rating, designed to inform the public about an institution’s safety and
soundness as an investment.
FICO SBSS: Small Business Scoring System. This is an aggregation

of data from multiple sources packaged into an underwriting tool for
lenders. It is a score assigned to a business signifying risk. This score
includes the business owner’s personal credit and the business credit of
the business. It is delivered through FICO’s liquid credit decision engine.
Financial Stability Risk Score: This is Experian’s score that depicts

your risk of failing or filing bankruptcy over the next 12 months.
Financial Stability Risk Score: This score identifies the businesses at

the highest risk for failure and payment default using payment data. It
is specific to Experian.
Fix Business Credit: The act of working with business credit bureaus
to fix inaccuracies. It includes working with state and reporting creditors
to correct business information or payment information reported. Each
bureau has their own process to submit updates.
High Risk Industries: Lenders and credit issuers keep internal lists of
“high risk” industries which face more scrutiny when getting financing.
I-update: a service provided by Dun & Bradstreet that allows you to

update information on your D&B credit reports.
Intelliscore Plus: the primary business credit score offered by Experian

Commercial.
LexisNexis Report: This is an extremely detailed consumer report

used by sources including law enforcement, insurance providers,
government agencies, and more.
LexisNexis Score: This is a risk score that ranges from 501 – 900. It is
used by credit issuers, lenders, insurance providers, and others to depict
your risk of repaying your debts.
PAYDEX Score: This is a business credit score, similar to your own

personal credit score. It is issued by Dun & Bradstreet and represents
how likely it is that your business will pay vendors and suppliers on time.
While your personal credit score ranges from 0 to 850, your PAYDEX
score is between 0 to 100.
Personal Credit Inquiry: When a creditor pulls consumer credit

reports to underwrite. The record of such an inquiry stays on the
personal credit report and impacts an individual’s ability to get
approved.
Pull Credit: When an individual or business reviews the business or

personal credit report of another business or individual. This applies to
personal or business credit bureaus.
Small business finance exchange SBFE: This is a members-only

data exchange where a majority of small business lenders share data
about the businesses they work with. Sharing is done in exchange for a
credit report aggregating the feedback other business lenders have on
the business.
Supplier Evaluation Risk Rating (SER): Bank rating specific to Dun

& Bradstreet. It measures the risk that a business will seek relief from
creditors or cease operations within the next 12 months. SER ratings
range from 1 to 9, and 9 indicates the highest risk of failure.

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CREDIT SUITE

Fundability Core Principles............................................................................. 3

Business Credit Cards....................................................................................... 8

General Finance Terms: .................................................................................. 10

Financing Options/Categories: ................................................................. 13

Business Credit Report Terms ..................................................................... 16

Fundability Factors: Individual elements that directly impact each of

Fundability Codex: A diagram of all the individual principles and

Finance (Fundability) Blueprint- The actions and game plan to

Fundability Core Principles

Business Credit Reports: Reports produced by business credit

- Commercial Credit Report ^

- Corporate Credit Report ^

Consumer Credit Reports: Reports produced by consumer credit

- Personal Credit Report ^

Application Process: The process of applying for financing; doing so

Financials: This is a common term used in lending which typically

The 3 C’s of Business Financing

In general, to get business financing, you need one or more of the

 Good personal and/or business credit

Business Financing: The act of leveraging debt, retained earnings,

Business Financing Types

Business Credit: All credit available to businesses. (Trade Vendor

- Reports to business credit bureaus

- Doesn’t report to business credit bureaus

- Reports to personal credit reports

- Doesn’t report to personal credit reports

- Net or revolving credit

Corporate Credit: ^ same as above

Trade Vendor Credit Categories Traditional Lenders

Vendor: A company that sells products or services to other businesses

Business Credit > Trade Vendor Credit > Starter Vendor:

Business Credit > Trade Vendor Credit > Fleet Vendor:

Trade Credit: Credit issued by Vendors to businesses for the purchase

Vendor Account: An account issued to a business with a vendor. It is

Trade Account: ^ This is a common term but it is more accurate to

Business Trade lines: Vendor accounts reported by the vendor to

Establish Business Trade lines: The act of applying to and using

Trade Payment Experience: When a businesses’ payment activity in

Business Credit Bureau: An agency that collects and researches

Commercial Business Credit reporting agency: ^

Corporate credit bureau: ^

Business Credit History: The number of trade payment experiences

Business Credit Reports: The reports produced by business credit

Build business credit profile: All information included on all your

Continuously Reported: A business trade line that is over 6 months

Newly Reported Trade lines: A business trade line that is up to 6

Business Credit Cards

Bank: A chartered banking institution lends directly to businesses and/

Alternative Lending (Finance):

Any lending practice happening outside a traditional banking

Fintech: Financial Technology (abbreviated fintech or FinTech) is

Non-Bank Financial Institutions: (Not bank chartered)

 Community Development Financial Institutions (CDFI)

Private Money: Money from an individual or a group of investors

General Finance Terms:

Terms Financing Type

Net Terms: Credit terms typically issued by vendors. Common terms

Good personal and/or business credit

Community Development Financial Institutions (CDFI)