Have you ever missed a credit card or loan payment? You may be surprised to learn that even if you “caught up” on your payments, your personal credit may still have taken a hit– and that could hurt your business credit score, too. Many lenders review an applicant’s personal credit scores as part of the lender’s decision to grant or not grant a loan, according to Quickbooks. In a lender’s eyes, your credit score reflects how well you manage money. As a small business owner or sole … [Read more...]
Getting Your Personal Finances in Order Builds Your Business Credit
Too many entrepreneurs who put everything they have into a startup do so without making the best possible plan to build their new company’s credit. That’s not to say that they don’t make a plan. It’s just that the relationship between personal and business finances is complicated, but the core issue is simple: While you do want to keep business and personal finances separate, the business will not have credit of its own to use to secure loans for a while. Unpacking the Relationship The … [Read more...]
