Understanding Bank Ratings

How your average daily balance impacts your internal bank rating and lending odds.

Before a bank even looks at your business credit score, they look at your Bank Rating. This is an internal metric used to gauge your cash flow stability based on your average daily balance.

The Bank Rating Scale

Bank ratings typically scale from Low-3 to High-5. A "Low-5" rating means your average daily bank balance over the last 90 days has been between $10,000 and $39,999. A "High-5" rating means your balance has consistently been between $70,000 and $99,999.

Why It Matters

Lenders use your bank rating to determine your capacity to take on new debt. If your bank rating is a Low-4 (balance between $1,000 and $3,999), you will likely be denied for a $50,000 loan, regardless of your credit score, because the bank doesn't believe you have the cash reserves to make the payments.