How Kredura Calculates Funding Readiness
An independently developed, educational readiness indicator. It is not a consumer credit score, a lender’s underwriting result or an approval decision.
What the score measures
How prepared a business appears to be for common small-business financing requirements, based on its owner’s answers. It shows where the business is organized and where gaps remain. It does not measure creditworthiness, predict approval, or estimate what any lender will offer.
What data we collect
Multiple-choice answers about your business: formation, operating history, revenue ranges, banking, documentation, credit awareness and goals. Every answer is self-reported. Kredura does not pull credit reports, connect to bank accounts, or verify answers with third parties.
We never ask for Social Security numbers, bank logins or full credit reports. Answers are private to your account and protected by access controls.
How factors are evaluated
Each answer has a fixed point value from 0 to 100. A factor’s score is the weighted average of its answers. Your overall score is the weighted average of factor scores. If a factor has no answers, it is left out and the remaining weights are used. The same answers always produce the same score under the same method version.
Factor weights are Kredura’s own judgment about relative importance. They have not been validated by any lender, and we do not claim they have.
| Factor | Weight | Basis |
|---|---|---|
| Formation & operations Funders need to confirm a legally registered, operating business with a federal tax ID and consistent records. | 15% | Published rule + Kredura point values SBA-backed loans require a for-profit business that operates legally in the United States; many entities need an EIN. Point values within the factor are Kredura heuristics. |
| Time in business Operating history shows a business can sustain itself. Many funders publish minimum time-in-business thresholds, and those thresholds differ by provider and product. | 10% | Kredura educational heuristic Kredura educational heuristic. Minimums vary widely by provider; no single published threshold applies to all lenders. |
| Revenue & cash-flow stability Repayment normally comes from business cash flow. Stable, documented revenue is central to most financing decisions. | 20% | Published rule + Kredura point values SBA rules require that loans reasonably assure repayment. Revenue bands and point values are Kredura heuristics, not lender minimums. |
| Business banking & account history Business bank statements are one of the most commonly requested documents and show revenue, balances and separation from personal finances. | 10% | Kredura educational heuristic Kredura educational heuristic. Statement-history requirements vary by provider. |
| Financial documentation Lenders typically ask for financial statements, tax returns and supporting documents before making a decision. | 15% | Published rule + Kredura point values SBA guidance lists financial statements, tax returns and a business plan among common application documents. Point values are Kredura heuristics. |
| Business credit profile Some funders review business credit files. Accurate files with on-time payments show how the business handles obligations. | 10% | Kredura educational heuristic Kredura educational heuristic. Whether and how business credit is used varies by provider. |
| Business debt obligations Existing payments reduce the cash available for new obligations. Funders consider whether new payments are affordable. | 10% | Published rule + Kredura point values SBA rules require reasonable assurance of repayment, which includes considering existing debt. Point values are Kredura heuristics. |
| Personal credit & guarantee readiness Many small-business products review owners’ personal credit and require personal guarantees, especially for newer businesses. | 10% | Published rule + Kredura point values SBA loans generally require personal guarantees from owners of 20% or more. Kredura does not collect credit reports or scores; this factor reflects self-reported awareness only. |
Answers we collect but do not score: Industry affects which products fit, not how prepared you are. A website supports credibility but is not a documented funding requirement. Useful for credibility; not treated as a readiness requirement. Subjective; not a documented funding requirement. Not a documented funding requirement. Your goal personalizes product views; having a goal is not readiness. Personalizes product views (for example equipment financing). Personalizes your plan; timing is not readiness. Existing relationships vary too much to score fairly.
Readiness categories: Well prepared (85+) · Prepared (70+) · Developing (40+) · Foundation stage (0+).
Funding-type readiness views
Separate checklists cover business credit cards, business lines of credit, business term loans, sba-backed financing, equipment financing, revenue-based financing. Each lists items commonly requested for that type of financing, marks which ones your answers show, and suggests next steps. Underwriting varies by provider. We never show approval odds, credit limits, funding amounts or preapprovals.
What Kredura does and does not predict
- It does show which commonly requested foundations are in place, based on your answers.
- It does not predict approval, interest rates, limits or amounts, and it does not replace a lender’s decision.
- Kredura is not a lender, broker or credit bureau.
How recommendations are developed
Your three lowest-scoring factors become your top improvements, and ties go to the higher-weighted factor. Each one links to a guided mission explaining what to fix, why it matters, how to do it, which documents help, and how to verify the change. Finishing a mission is tracked as education. Your score changes only when you update your answers in a reassessment.
How often the method is reviewed
Reviewed at least every six months, and whenever a cited public rule changes. Every change gets a new version number, and your results always show which version produced them.
Sources
- 13 CFR 120.100 — SBA business loan eligibility requirements
- SBA — Loan eligibility (for-profit, operating in the U.S.)
- IRS — Do you need an EIN?
- 13 CFR 120.150 — SBA loans must reasonably assure repayment
- SBA — Prepare to apply (financial statements, tax returns, business plan)
- SBA — Business credit basics
- 13 CFR 120.160 — Personal guarantees from 20%+ owners
- FTC — Free credit reports (AnnualCreditReport.com)
- CFPB — Checking and disputing credit report errors
Kredura’s heuristics are educational judgments informed by commonly requested application items. They are labeled as heuristics wherever they appear.