To assist entrepreneurs who need credit but lack good credit scores, small-business self-help platform
The online self-assessment tool takes about an hour and produces a proprietary score Hello Alice developed ranging from 0 (poor) to 100 (solid), with instant recommendations and links to get technical help for small-business owners to improve their companies' creditworthiness. The tool, which was announced Wednesday, is part of Hello Alice's new Equitable Access Program connecting prospective small-business borrowers with lenders, the company said.
The score cannot be used to actually apply for a loan, but it could help small-business owners see areas where they could improve their odds of qualifying for credit, said Elizabeth Gore, co-founder of Houston-based Hello Alice.
JPMorgan Chase, Wells Fargo, Mastercard and the Kauffman Foundation, a nonprofit that provides grants to nonprofits serving small businesses, will soon make the free self-assessment tool available to entrepreneurs and small businesses, according to Gore.
Chase and Wells Fargo will offer the business health scoring tool to entrepreneurs and small businesses, while Mastercard will offer the tool to banks marketing small-business credit cards to customers, she said.
"If you get 70% you're passing, but you know you can improve," Gore said.
Hello Alice's online self-assessment tool produces recommendations such as separating personal and business finances and properly handling taxes and cash, Gore said.
Participants subsequently receive notifications reminding them to repeat the self assessment every 60 days to 90 days.
"The goal is to continuously improve the score of your business to keep up with changing conditions and opportunities," she said.
Hello Alice began developing the online business-scoring tool about 18 months ago. According to Hello Alice's research, 70% of business owners in the last few years have applied for funding through grants or loans. About 25% of entrepreneurs have applied for a small-business credit card, and 85% of those were turned down, the firm said.
"What we hope is that small-business owners will use the business score to make sure things are in order so that when they do apply for a loan they'll be duly prepared instead of turned down," Gore said.
