As a small company owner, whenever you go to a bank for a small business loan, in place of studying the performance of one’s company, the financial institution will look at your personal credit rating first. What this means is, regardless of if your company is doing well and profitably, a reasonable credit rating of 600-650 could stop you from obtaining a business loan. A credit history of under 600 portrays you being a high-risk debtor and certainly will ensure it is extremely hard to borrow even a tiny loan.
A credit that is low prevents loans being disbursed to lucrative and stable companies. Bad credit score shall follow both you and your company 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. Continue reading “Getting A Small Business Loan With Bad Credit Rating?”