The bank will check your personal credit score first as a small business owner, when you go to a bank for a business loan, instead of looking at the performance of your business. What this means is, regardless of if your company is doing well and profitably, a good credit rating of 600-650 could stop you from finding a business loan. a credit history of under 600 portrays you as a high-risk borrower and can allow it to be extremely hard to borrow a good loan that is small.
A low credit history stops loans being disbursed to lucrative and stable companies. Bad credit score shall follow both you and your business for many years. The loan officer turns you away for example, you may have owned a successful business for a few years and now you are looking for funds to expand into another city or purchase more equipment, but when you visit the bank. (more…)