When you apply for commercial financing, there are actually three types of credit that are reviewed for approval.

No matter what you are told … personal credit ALWAYS matters … unless it is not being reviewed. For example, when applying for a business credit, you can use your EIN to get approved and leave your SSN off the application.

When you do this, your personal credit is not even looked at or used for the loan decision, but this is the only exception in the commercial financing space.

All other types of financing, including advances, look and care about your personal credit. YES, you can get approved for bad credit cash flow financing and business advances, but your payment terms will not be as favorable as if you had good personal credit.

SBA loans, conventional loans, most other long-term loans, and lines of credit require good personal credit for approval in most cases. Financing based on collateral and asset types is less concerned with personal credit. This is so if the financing only considers the guarantee for approval, not the financing where a guarantee is required for approval.

There is no FCRA in the business world, so lenders will never reveal that they are taking your business credit when you apply for business financing. But they do take credit out of your business!

Just think, you are requesting money for your business, and your business has its own profile and credit score. So, of course, they will want to see how the business pays its bills in addition to how you do as the owner. There is a LOT of money available to business owners, more now than in the past. You just need to know what type of financing to look for, once you know that you can more easily find what you need.

Not having established business credit makes you look like a newbie, a new company, an “off the charts” business. This will lead to denial, so make sure you have at least 5-10 accounts reported and that you are paying them as agreed.

You actually have three types of credit: personal credit, business credit, and bank credit. All three should be good to give you the best chance of approval.

Your bank rating is based primarily on the amount of money you have in your bank account for the past 90 days. High 5, account balance of $ 70,000-99,999, Medium 5, account balance of $ 40,000-69,999, Low 5, balance of $ 10,000-39,000, High 4, 7,000-9,999, Medium 4, 4,000-6,999 and Low 4 , 1,000 -3,999.