Personal credit is your tangible asset for life; why not take care of it? Everything starts with personal credit, including business finance. As a business owner, maintaining your personal credit is the key to flexible financing. With current lending restrictions, many lenders require a three merge credit report besides your business credit report. Lenders use Dunn and Bradstreet, Equifax or Experian for your business credit report. Your personal credit scores are a significant factor for your business loan application, and your business credit scores are imperative for your vendors and lenders.
It doesn’t matter if you’re a high powered executive, an attorney, a doctor, a millionaire or billionaire, a credit slip-up can happen to anyone, at any time. A good task is to check your personal credit, go to Equifax or Experian and order a three merge credit report for your personal credit; you will not be penalized for a credit inquiry.
Ex 1: Client-A is a doctor, he intends to buy out his partner at their medical practice. Client-A currently has student loans that are over the available limit; as a result, this caused his FICO scores to plummet. Client-A paid down his student loans below the available balance so his credit scores can go up, besides utilizing our customized credit restoration services. Student loans are very tricky; especially when they are in deferment, because they are in deferment, your balance will continue to increase due to the APR, pretty similar to a negative amortization mortgage. Ex 2: Client-B owns an IT business, he had a business credit card, its interest rate went up by 18%, and he was paying 28.5%. In addition to his new inflated rate, the bank reduced the available balance by $8,000. Client-B was very frustrated, he contacted us to assist him with his business debt, we located the credit slip-up that was on his personal credit, this triggered the bank to reduce his business credit card and simultaneously increase his interest rate. The result: we succeeded in reducing his interest rate down to 12.75%, a savings of 15.75%.
If you’re applying for short term business loan, business credit card, factoring your accounts receivable, alternative SBA or an asset based loan, your personal credit is an essential factor for your loan approval.
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- Managing Your Business Debt and Maintaining Your Business Credit like Your Weight
For more information on how we can help you with business credit and personal credit in Boca Raton, please fill out the online contact form about your concerns or give us a call at 855.477-9007 . Read what our valued clients have to say about First Pro Capital on our Testimonials page.
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