by Scott Clark
Loan documentation and the complexity of the loan request will vary by bank. The request usually includes an application, personal financial statement, personal tax returns, business tax returns and current business financial statements. If a borrower is seeking a loan for a startup business or business expanding to a new location, the bank will need projections for the business. Your banker may have questions after reviewing this initial documention so be prepared to provide additional information.
Is My Personal Credit Score Important In Securing A Business Loan?
A borrower’s personal credit score is one of several qualifications banks use to extend business loans. A personal credit score helps banks determine a borrower’s credit strength. A credit score reflects how you have paid your existing personal debt. A good credit score and no late payments is a good indication that a borrower will pay a business loan as agreed. Some banks have minimum credit score requirements that borrowers must meet. Knowing your credit score prior to applying for a business loan will be helpful for the bank and borrower during the application process.
Answers provided by Scott Clark, Vice President, Commercial Lending at Simmons Bank. He can be reached at 314.854.4523 or scott.clark@simmonsbank.com.
Note: We are excited to announce that Simmons Bank is our new contributor to Ask The Banker. Simmons Bank bankers will be providing their banking advice and guidance to our readers and followers.
Submitted 3 years 212 days ago