Ok, you’ve got your business plan in place, you’ve outlined your financial statements, and you know how much money you need from your small business loan, and exactly how you plan to spend it. The only issue is that you have bad personal credit due to some financial mistakes you’ve made in the past. While this is not necessarily a deal breaker, having a low credit score is a concern for banks and lending institutions. However, if you turn to an online lender like Fast & Easy Funds, your chances of securing a loan are higher than through a bank.
First and foremost, business credit and personal credit are not at all the same thing, and depending on the type of business you’re launching, each can play a different role in securing a small business loan. An individual applying for a loan with a poor personal credit score is going to find themselves challenged with proving that they’re able to repay the loan. Banks are going to take everything into consideration when deciding whether to approve a loan application and regarding sole proprietorships, personal credit can sway their minds towards one direction or another.
Additionally, business Intelliscore Plus from Experian may combine your credit history and utilize it to determine your business score. These blended scores are used to determine the risk of a small business. Banks and lending institutions prefer to invest in businesses that are near certain to be profitable, therefore it’s vital to minimize the risk potential as much as possible when seeking a small business loan from a bank, or try your odds with an online business loan provider with more leniency.