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 performing well and profitably, a good credit history of 600-650 could stop you from getting a business loan. A credit history of under 600 portrays you as a high-risk debtor and certainly will ensure it is very hard to borrow a good tiny loan.
A low credit history prevents loans being disbursed to lucrative and stable organizations. Bad credit rating shall follow both you and your company for many years. Read more