There is some confusion about whether or not every small business has a credit profile (in addition to a personal credit score.) If your business is a registered business, including sole proprietorships, along with your personal credit score, your business will have a business credit profile.
Some challenges will put stress on your business — and yourself — more than others, and bouncing back after such a challenge can be crucial in your long-term recovery.
Understanding the truth about small business loans and other forms of debt financing will reveal opportunities for growth, and it will help you manage your business with confidence.
A good personal credit score often leads to more favorable loan terms and lower interest rates. Credit.com recently introduced a Lifetime Cost of Debt calculator that gives you visibility into what credit might cost over your lifetime depending upon your personal credit score.
Your personal credit score is very important for most small business owners looking for a small business loan. Many lenders still use the personal credit score as a go-no-go metric for business loan approval.