Many people think their personal credit score is well personal and shouldn’t have any impact on their business life. However, that just isn’t the case. Many lenders, especially financial institutions, will review your personal credit scores to determine whether they can approve you for a loan or not.
However, even if you have some credit issues, you can still qualify for a business loan. There are 2 things to take into account in this concern. First, interest rates, payment schedule, terms, and fees are different with a business line of credit and a business loan. Second, credit scores play an important role in getting approved for a small business loan or any small business financing from a bank.
Different lenders have different requirements. According to the U.S. Small Business Administration, credit scores are the reflection of how well you manage your finances. Poor credit scoresmay show you cannot handle your finances well, meaning you won’t be able to manage your business’ finances well either.
Happily, low credit scores don’t mean you cannot qualify for small business financing. In this case, you can turn to alternative lenders to get the necessary capital for your business.
Merchant account bad credit is not a problem for eMerchantBroker, a reputable high risk merchant account provider. EMB is voted the #1 high risk processor in the US and has an A+ rating with the BBB. EMB is rated A by Card Payment Options and is one of Inc. 500’s Fastest Growing Companies of 2016.
Personal credit scores play the same role for business loans and any other type of lending. In fact, a score less than 660 will make it rather difficult for you to find an “A” bank lender with favorable terms. If you have 720 or higher scores, it won’t be challenging for you to find a loan with favorable rates and terms. If you cannot get working capital from a traditional bank or other financial institutions, consider alternative loans.
Poor credit won’t let you get approved for a business loan from a traditional bank or financial institution. However, this doesn’t mean you should fall into desperation. You can find enough alternative lending options designed for small business owners and entrepreneurs that you can choose to secure the funds you need to start and grow your business