Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

Starting up a new business venture is often requires a lot of cash, sometimes even more than you can pull together from savings and your home equity. After you have tapped friends and family, a funding gap can still remain. Small business loans can make up that shortfall at affordable rates and terms.

Yet banks and credit unions have been especially careful with their small business loans since the Great Recession, requiring impeccable credit records. Start-ups and fledgling firms typically do not have enough credit history to have a satisfactory business credit score, so lenders will look heavily at the business owner’s personal credit report to decide whether or not to make a loan.

So what if your score is not perfect? Unfortunately, unless there are some grave errors on your report, there is no instant fix for low scores. Every good credit choice you make will move your score incrementally higher over time. So if there are corrections to be made, a small business owners can’t waste any time in starting the process of building better credit. Here’s how:

  • Make Timely Payments – Even a single late payment can significantly drop your credit score. Be sure to stay on top of all credit card payments, car loans, mortgage payments and any other installment loans. Set up automatic payments if you haven’t already to make sure you don’t miss any by mistake.
  • Pay Down Debt – Small business loan lenders want to see that you can handle your debts well. The faster you can pay down things like credit card debt, the better off you will be. Lenders like to see credit reports where borrowers are not making out their credit limits.
  • Don’t Change Your Accounts – Applying for new credit accounts or closing existing ones can have a negative effect on your credit score. New accounts make lenders think you cannot stay within your means, and closing old accounts lowers your amount of available credit.

As you make these changes to your credit habits, you will gradually see an improvement in your credit score. Armed with a better score you can feel more confident applying for the needed small business loan.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources