Depending upon where you apply, your business credit profile, and other factors, it might be difficult to get a loan approval.
There is some confusion about whether or not every small business has a credit profile (in addition to a personal credit score.) If your business is a registered business, including sole proprietorships, along with your personal credit score, your business will have a business credit profile.
Although your business credit profile and your personal credit score are very different, and even express different information about you and your business, they both impact your ability to qualify for loan and the options available to your business.
Many lenders not only want to know that you have good cash flow, they want to make sure you have the right kind of cash flow. What does that mean?
Accessing capital is a challenge for many small business owners—particularly for startups. Of course there are options, but some of them are potentially more risky than others.
Depending upon your lender and the nature of your loan, you may or may not need all of these documents to apply. Regardless of whether or not you need them all, because depending upon the type of lender you choose they may or may not require all of them, it’s a good idea to have this information at your fingertips.
A good personal credit score often leads to more favorable loan terms and lower interest rates. Credit.com recently introduced a Lifetime Cost of Debt calculator that gives you visibility into what credit might cost over your lifetime depending upon your personal credit score.