First Person: Small Business Loans All Come Down to You

With any business, large or small, there is one thing that is required: money. If you own a small business then you may find that you are running shy on the green stuff and that you need to apply for a small business loan. While you obviously know that you are short on cash, you may not know that getting that small business loan really depends more on you much more so than your small business.

When I was a stock broker and financial adviser, I had many clients baffled that they couldn't get a small business loan because of one crucial element, their credit score. While the loan is indeed for your small business, you have to realize that to a lending institution, you are the small business. Therefore, your personal credit will be looked at very heavily when the lending intuition sits down to consider your loan.

So, before you apply for that small business loan, you have to know your personal credit. Now, this goes far beyond saying, "Well, I think I have pretty good credit." In order to know for sure, you need to get your credit scores and your credit history.

There are three major credit reporting agencies and you should obtain a copy of your credit scores and your credit history from before you proclaim your credit status. Equifax, Experian, and TransUnion are the big three and you want to be sure that all three have your credit score fairly close.

While one or two may have you in very high standings, one may have you far off. If this is the case, you need to dig onto your history and see what is causing the difference. Sometimes it may be a mistake on the part of an old creditor or even the credit reporting agency. That mistake can wind up costing you your small business loan. So, before you go for that small business loan, you need to be sure that everything in your credit history is correct and up to date, which will be reflected by your credit scores.

Once you have handle on what your credit rating is you can then proceed to the lending intuition of your choice and begin the process of applying for your small business loan provided you meet their lending requirements credit score wise. Not sure what the requirements are, just ask.

Remember, your small business is effectively you and when you are looking to raise that extra bit of cash you need to make it through the lean times it is you who will be closely scrutinized. Don't waste your time and efforts with any of the small business loan process until you know for sure what your credit scores and credit history is.

More from this contributor:
Five Simple Ways to Re-Establish Your Credit
Why You Should Get a Prepaid Credit Card
Increase Business Sales Online and Offline by Accepting Credit Cards