Do you own a small business and need access to working capital such as merchant loans? Well, remember that your personal credit can get affected by your business loan. Sometimes, such impact can be for better, and sometimes just the contrary. Let’s read below to learn more.
Merchant Loans Vs. Personal Credit
As you know, there’s a difference between your company’s credit reports and your personal ones.Dun and Bradstreet, Experian (Business Credit), and Equifax (Business Credit) are the major business credit reporting agencies in the U.S. However, they aren’t the only reporting agencies.
The way a business loan can influence your personal credit has to do with the type of business you’re running and how yourcredit comes to you. Namely, if you give a personal guarantee for a business account in any capacity, your personal credit can get affected.
So, when turning to a lenderfor a loan, it’s important to ask him/her whether the lender will report to the consumer credit reporting agencies (Equifax, TransUnion, and Experian).
To get reliable and low cost merchant loans fast and easily, just apply to a respectable alternative online lender that specializes in your field. With the right business financing expert, you can enjoy the safest and cheapest funding you really deserve.
The Impact of Business Loans
As a rule, personal credit scores fall between 300-850. The majority of small business loans will require to have at least 550.Importantly, not all business loans have the same requirements and offer the same terms. Anyway, in case you default on your loan, your credit may suffer from devastating consequences if the provider reports the loans on your personal credit reports.
What about your personal credit? Well, it speaks of your trustworthiness. So, the lender takes it into account to be sure you won’t fail to pay your bills in a timely manner and in full. By the way, keeping your personal credit and your business credit together isn’t a good idea.
To sum up, it can sometimes be rather challenging to obtain a merchant loan for your business to grow it or take it to the next level with ease. The way a business loan may affect your personal credit depends on the provider you’ve chosen to turn to.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loans solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.