By Mark Abell
Small business owners can significantly improve their chances of getting a loan approved by first taking steps to boost their personal credit score.
The biggest factors that any bank looks at when deciding whether to approve a loan are the 5 Cs of credit: capital, collateral, conditions, cash flow, and creditworthiness. For young companies, consultants operating as solo practitioners, and early-stage startups, that creditworthiness component leans heavily on the owner’s personal credit.
So, trying to keep your personal credit score as high as possible will give the company the best chance that an application for a U.S. Small Business Administration-backed loan will get approved….