With an estimated 99.95 percent of small business owners and entrepreneurs opting for debt financing, knowing how to prepare your business for a loan application is a must.
Among the documents that a lender will review, your personal credit as well as your business credit are criteria that play an important role—both can either assist, or in some cases obstruct, your ability to secure financing.
Let’s review some key strategies that everyone needs to know about personal credit score vs business credit score.
Personal Credit Score vs Business Credit Score, What’s the Difference?
These two scores are often independent of each other and they measure different things. Your personal credit score measures your creditworthiness—your personal ability to pay back a debt. On the other hand, a business credit score measures the ability of your business to meet its own financial obligations….