Small Business Financing Requires Strong Personal Credit
Because many small business owners are service based operations with minimal assets that can be offered for security, and limited opportunities to build supplier trade credit, there is high reliance on personal credit in small business financing applications.
Business finance lenders will even have minimum required credit score levels for any application that they receive. One of the most typical score requirements is at a level of 650 or higher.
If a business owner has a personal credit score under the established level, then the application will be declined without any further review or explanation with respect to the rest of the application package.
