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info@goldstarcredit99.com

How Much Cash Can I Get!

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Q.13) How will my personal low credit rating affect business loan application?

Since you are the responsible person of the company and hold a high position (Director/Owner) the financial institution will check your personal credit score while processing your application. The only record of creditworthiness the moneylenders will have access to will be your personal credit score, hence, most moneylenders verify the credit score to determine the financial capabilities and your ability to repay the loan amount. It is the perception based on the belief that if you are capable of managing personal finance, then you will be able to manage business finance as well.
However, the importance of personal credit score varies from lender to lender as there are other major factors such as financial statements, profit-making abilities, and future growth prospects that are considered for determining the overall financial condition of the business. Hence, in case if you have a bad credit score, the lender may still approve your loan application by considering these factors.

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