Approximately 99.95 percent of small businesses try to take advantage of debt financing. In doing so, it’s imperative that these companies and business owners understand what goes into acquiring a potential loan.
A personal credit score and a business credit score are completely separate from one another. A personal credit score is meant to show how reliable you would be with paying back debts while a business score shows your business’ ability to meet any financial obligations. With your personal score, lenders determine how much to loan you, what terms to apply to your loan, and anything else associated with your loan. Your business credit, on the other hand, will let financial institutions determine if you’re a candidate for debt financing.
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