Is a business loan based on personal credit?
Personal credit is often considered as a secondary factor when qualifying a business owner for business financing.
However the primary factors for qualification will be the health of your business; meaning, your average monthly revenue, and the length of time you’ve been able to sustain that will also be a consideration.
So, even if your personal credit score is perfect, but your business is 3 months old and generating $5,000 a month then it’s unlikely that you’ll get a business loan.
However, if you’re on the fence or barely eligible as a business owner then a high personal credit score will play in your favour as an extra security blanket for the lender to know that you’re a responsible person when it comes to your credit history and that may help you get approved.
