The Business Credit and Financing Guide
II. Business Credit: Everything You Should Know About Your Corporate Credit When you apply for business financing there are three types of credit reviewed when your approval is under consideration.
Personal Credit No matter what you have been told, Personal Credit always matters, unless it isn’t under review. For example, when applying for business credit you can use your EIN to get approval. Then only provide your SSN on the application for identification purposes. When you do this, your personal credit isn’t even looked at, nor is it used for the lending decision. This is about the only exception in the business funding space. All other funding types including advances look at and care about your personal credit. Yes, you can get approval for cash flow financing and merchant advances with bad credit. But your repayment terms won’t be nearly as favorable as if you had good personal credit. SBA loans, conventional loans, most other long term loans, and credit lines often demand good personal credit for approval. Collateral and asset type-based financing doesn’t care about personal credit as much. This is if financing only looks at collateral for approval, not financing where collateral is necessary for approval.
Bank Credit With Bank Credit, your bank rating is mostly based on the amount of money you keep in your bank account over the last 90 days. The scores work out as follows. ©️2022 The Distributor of this e-Book, all rights reserved . No reproduction or use of any portion of the content or work or the entire work is permitted without the express written permission and authorization of the publisher . However , the publisher of these materials routinely grants authorization for reproduction or use of this work , in whole or in part. If you would like to use any portion of this material in a book, article, e-zine, newsletter, radio, or television broadcast, podcast or in any other seminar teleconference or other events or publications please email or call the distributor of this guide.
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