The Differences Between Personal And Business Credit Scores
It is important to note that the scales in which personal and business credit scores are measured differ. Personal scores range from 300 to 850, while business credit scores typically range from 0 to 100. To determine your personal credit score, check out this personal credit score guide. If you need to access your business credit score, you can get a report generated by companies such as Dun and Bradstreet and Equifax.
If you’re in need of additional financing, it is possible to receive a bad credit business loan, despite having a low score. There are alternative lenders who will look at other aspects of your business’s finances, such as time in business, monthly sales, and cash flow. When applying for financing, it is pivotal that you thoroughly research lenders that work with businesses with bad credit, and determine if you meet their qualifications.
Build your credit –
Receive financing to grow your business –
Form a relationship with a lender that you can work with again in the future –
Questions to Ask About Bad Credit Business Loans:
If you have a low credit score, you should pursue a financing option that will not lower your credit score any further.
Prior to applying for a bad credit business loan, ask yourself and your potential lender the following questions:
If a lender does a hard pull, your credit score could be reduced by 1 to 5 points. In compassion, a soft credit pull will not affect your score.
Before applying for additional financing, you should research lenders that don't have strict credit score requirements. If you are unable to find the right fit, you might be better off focusing on how you can improve your score. At the bottom of this page, you'll find tips on how to do this.
Every lender is different. Make sure you ask this question upfront before submitting your application. Some bad credit business loan lenders will do a soft pull to give you an approval, and then a hard pull before they provide you with the loan.
Although having business financing can be beneficial, it is important to consider if your needs are immediate, or if you can wait until you raise your credit score.