Credit Enhancement is a financial strategy for improving the credit risk profile of an individual or business, usually to obtain better credit or loan terms, including a lower interest rate. Credit enhancement is usually accomplished by: (1) Providing additional collateral, (2) Obtaining a credible third-party guarantee, or (3) Reducing outstanding debt and lease obligations in order to improve cash flow.

Individuals and companies that are concerned about their credit should be aware of the ChexSystems network which is composed of member financial institutions that regularly contribute financial data on mishandled checking and savings accounts among members to help them determine whether an individual or company is creditworthy.

Revenue-Based Financing - Royalties

Vendor Financing - Loans

FICO Score - Credit Score

Factoring - Invoice Discounting