Does your personal credit score impact a lender’s decision to offer you a business loan? Yes, it does!
A lender will check your personal credit score, in addition to your business credit report, when they’re deciding to lend to your business.
Your business and personal credit histories can affect:
- Whether or not you get approved for a business loan
- Your options for terms and payment schedules
- The interest rate on your loan
- The total amount of financing that lenders are willing to provide
Why is your personal credit score important when you apply for a business loan?
If you’re a first-time borrower, your business is relatively young, or your business has a low credit score, lenders will check your personal credit history before deciding to lend to you. This helps them gauge how trustworthy of a borrower you are and whether or not you will be able to repay the loan they give you.
Business Loans. Enabled Simply.