Get Funded! | Your Personal Credit

By: Ervin Hughes, Jr.

Managing Director at Rainstar Capital Group | President at Dominion Capital Management

Step #1 Starts here. Getting access to funding for small business owners has always been a challenge. This is especially true when the personal credit scores of the owners are not very strong. According to a recent survey1, 70% of small business owners used only their personal credit to access funding. Typically, traditional lenders will use the personal credit scores of the owners as one of the qualifications used to determine whether the owner is eligible for funding and the price you’ll pay for financing.

Get Your Own Credit Report. If you’re looking to get financing for your business from a bank, then start by pulling your own personal credit report with the scores. Pulling your own personal credit report will not generate what is referred to as a “hard inquiry.” Getting your personal credit report in order before you start to apply for funding for your business is a critical step toward increasing your chances of successfully securing funding from a bank on the first try. You can get your credit report and the credit scores from all (3) major reporting agencies for $1 by visiting www.creditchecktotal.com and sign up for the free trial offer.

What’s the Goal? No matter where your credit scores are now, you can still get funding to start up or expand your business even if your personal credit is not very strong right now; however, it’s vital that you have a goal to work toward if you plan to get funded. The consensus on what’s a strong personal credit score is 740 and above based on the FICO 8 model. FICO says the FICO 8 is the “most widely used credit score in America.”

Want to Learn More? Attend How To Make Your Business Bankable – Presented By: American Business TV at Small Business Expo 2019 – Dallas https://sched.co/HRVI@thebizexpo #SmallBizExpo @sched

1Source: www.fedsmallbusiness.org 2018 Small Business Credit Survey