No Need for Personal Credit

Build business credit regardless of your personal credit score or guarantee.

The following illustration is an example of what the personal credit report will look like for the same individual who has no business credit and again when they have established business credit.  

Yes, it is possible to obtain credit under the business name without the use of your personal credit score or guarantee.  At the same time this does not mean that you never have to use your personal credit or guarantee ever again. 

In the four Tiers of financing a small business each pillar has it’s own requirements when it comes to providing a personal credit check or guarantee.  In the first two Tiers most companies will grant credit directly to the business, without the need for a personal credit check or guarantee.  The credit grantors are willing to take risks on the businesses because their target market is the start-up or small business owner. 

In the next two Tiers, Pillar 3 and Pillar 4, there is almost always a business credit check, personal credit check and guarantee.  This however, does not mean that it will show on your personal credit report.  The ability to have loans and credit for your business that don’t show on your personal credit report helps your credit score and ability to obtain future credit.  In fact, many of our clients have obtained over $350,000 in business credit that doesn’t show on their personal credit reports. 

One area looked at frequently for loan approvals is the DTI or Debt to Income ratio.  Two others are the available revolving credit and the amount of credit outstanding. 

By using business credit that only shows up on a business credit report and not your personal report you help the ratios and improve your chances of obtaining more credit and access to capital when you need it most.

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