Personal Credit Matters for Business Owners
Why is my personal credit important if I am interested in a loan for the purpose of opening or purchasing a business? I am asked this question by most of the business owners with whom I am working. And it is an excellent question! Why is your personal credit important if you are looking for funds to purchase a business? One of the main reasons for this is Every Business Loan Requires a Personal Guarantee. The next question is, What is a Personal Guarantee? A Personal Guarantee says the business owner is ultimately responsible for the Business Loan or Equipment Lease Loan. The Personal Guarantee is the equivalent of a legal promise by the business owner to pay a loan that has been issued to your business. A Personal Guarantee is given by any business owner with more than 20% business ownership (10% with equipment leasing.)
Often, good businesses and business start-up ideas are turned down for loans due to the negative credit problems of the owner or owners. Start-up business owners especially need to be mindful of their personal credit as it is more difficult to obtain funding for a start-up business. Even though you may be operating a profitable, long-term business, low owner credit scores can keep a business from getting the loans needed to continue to grow or require owners to accept higher costs funds, like Merchant Cash Advance programs.
So, what can you do if your credit is less than spectacular? First, you should review your credit report through the major bureaus. Each bureau offers you a free credit report (but not a free credit score) once a year. You should review it for inaccuracies and dispute inaccuracies you may find. You can work on your credit on your own, however, Flourish Commercial Capital also offers clients a Credit Repair Service through one of our partners. Our credit repair service has successfully repaired the credit of more than 50 of our clients, allowing them to obtain the funds needed to start or expand their businesses.
Credit Repair Services can help clients with all of their credit repair needs.
Credit Repair Companies Generally Offer the Following Services:
1. Credit Restoration – Remove Late Payments on Closed Accounts, Collections and Charged Off Accounts2. Credit Building – Business and Personal 3. Trade Lines – To Strengthen the Personal or Business Credit Profile 4. Inquiry Removal – (specifically to get approved for various funding sources) business funding, car, mortgage, etc. Once your credit score is above 700 – or if it is already – lending partners, including Flourish Commercial Capital can assist you with obtaining start-up business funding. We can assist you with SBA loans but we also use an Unsecured Bank Loan program to fund several start-up businesses every year. This program offers a 5 Year Term with a Fixed Interest Rate between 7% – 11%. There are No Prepayment Penalties and No Collateral Required. If you have any questions regarding credit repair or business funding, please give us a no obligation call. Call Flourish Commercial Capital can explain how you can be “start-up business ready” and obtain funding for your existing business. Let us know how we can be of service to you today. We are Here to Serve!