If you are looking to borrow funds for your business it is more important than ever before that you look after your credit score.
In the “old days” ie last week lenders would look at all aspects of a “deal” that was being proposed to them attaching different “weights” to each aspect of the proposal. For example if you are looking to finance say a car then the finance company will attach value to that because if you don’t pay for it they can take it back and sell it on. If you were financing software that would have little or no value should you default.
Increasingly though finance companies will perform a credit search on (in small businesses) both the company and the director’s/proprietors. Often they will want 6 months business AND personal bank statements. If there are any missed payments or bounced direct debits/cheques in the last 6 months that will normally be the end of the application and it will go no further, no matter what you are looking to finance. Computer says no has never been truer.
So keep all your credit cards up to date, don’t let your bank account go over it’s limit.
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