Have you ever defaulted on a loan? Have you ever been late paying your credit card bills? Are you able to keep up with your mortgage payments? If you’ve answered “no” to any of these questions, it is highly possible that you have a poor credit score. Your credit counts for a lot. It’s basically a short-form way of saying “credibility”. If you have a history of being unable to make timely payments for money you’ve borrowed, you are not considered credible.
Having bad credit can significantly impact your ability to attain funding from a bank for your business. Many business owners across Canada have endured severe hardships trying to grow their businesses because their local banks won’t approve them for business loans. Often, it’s their poor credit histories that are cited as the reasons their applications were denied. A poor credit history, by the way, can be either of the personal or business variety.
Your personal credit is always taken into account when applying for a loan.
As we mentioned earlier, late credit card payments affect your personal credit score. Don’t assume that just because your credit card has nothing to do with your business, that there isn’t an impact. On Entrepreneur.com, Eric Rosenberg explains that your personal credit history matters when trying to attain money for your business.
“In most cases, if you are running your business as a sole proprietorship, LLC or S-Corp, your personal credit definitely impacts your business,” he writes, “This is why it is so important to make on-time payments, never pay less than the minimum and never spend more than you can afford to pay back. If you have poor credit and need to get on track to get things fixed up, check out this complete beginner’s guide to credit to learn how your credit score and credit report work and how you can get on track for excellent credit.”
Your business credit must be strong.
As you can imagine, your company’s credit history must also look good if you expect to receive funding from a bank’s loan officer. As Melanie King explains on Comcast.com, business credit reports are based on such factors as business demographics, public records, trade payment history, financial payment history, corporate family trees and other information including the owners and guarantors associated with the business.
“Building a strong business credit score over time can help you get the most capital with the best rates and terms to help you grow or expand your business,” she writes, “A poor business credit score may eliminate some loan options and make remaining options more expensive and less appealing. It also may make your business less appealing to potential business partners and suppliers looking for financially stable business relationships.”
Your credit history does not impact your ability to get a merchant cash advance!
At Synergy Merchants, we’re proud of the fact that we’re able to help Canadian business owners to grow their businesses even if their credit histories are poor. For more information about how our unique merchant cash advance program works, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at email@example.com.