The bank will check your personal credit score first as a small business owner, when you go to a bank for a business loan, instead of looking at the performance of your business. What this means is, regardless if your organization is doing well and profitably, a reasonable credit rating of 600-650 could prevent you from obtaining a business loan that is small. A credit score of under 600 portrays you being a high-risk borrower and will allow it to be extremely hard to borrow a good loan that is small.
A low credit history prevents loans being disbursed to lucrative and stable organizations. Bad credit score will follow both you and your company for decades. For instance, you’ve probably owned a fruitful company for a couple years and from now on you are interested in funds to grow into another town or purchase more equipment, however when you go to the bank, the mortgage officer turns you away.