I received a comment on the last post on bad personal credit. I would like to share the comment and my answer.
The comment:
I think you need to say it depends on how “bad” the credit is, and what type of loan are they trying to qualify for. I know from experience if your credit score is below 680 your going to have a hard time getting a loan, and when you do your interest rates will be high, if your below 600 don’t even try! S.A. McGahan, Unsecured Business Loans
My Answer:
What Business Credit Services, Inc. offers to business owners is assistance with obtaining business loans and lines of credit that are rewarded based on the credit worthiness and the businesses Paydex score, not solely on an individuals FICO score. So no, it does not matter what an individuals FICO score is, as the lender is not basing their decision on the individuals FICO score but the credit worthiness and Paydex score of the business. So it does not matter whether the owner has a FICO score of 680 or below 600. Business Credit Services, Inc. is very different from most “business credit” organizations. Their goal is not to assist business owners with obtaining lines of credit or loans based on the individual’s credit score, their goal is for the business to establish itself as credit worthy and for the business to secure its own loans and credit lines. This means that the business in responsible for its own debt and not placing this burden on the shoulders of the owner.
I took the time to review your website to better understand what your experience was with business credit, prior to responding to your comment. I believe it is important to identify that it appears that your experience is limited to unsecured business loans and credit lines, as those are the products promoted on your website. The unsecured business loans and credit lines offered rely solely on ones personal FICO score and not on the credit worthiness or Paydex score of the business itself. So yes, it is true a business owner paying for your assistance to obtain a business loan or a line of credit or even a business owner who goes directly into a traditional bank would be required to have a “high” personal FICO score in order to secure a loan or credit lines. However, obtaining an unsecured business loan based solely on ones personal FICO score will ultimately affect their ability to secure personal credit for auto loans or mortgages, it creates unbalanced debt to income ratio’s making it impossible to obtain additional business loans, significantly reduces ones personal FICO score flagging them as high risk borrowers, affecting the APR they pay on obtained loans or credit lines, but most importantly creates a personal liability for the repayment of the obtained loans or lines of credit. So in reality what are being obtained are personal loans and personal lines of credit, just marketed to business owners as unsecured business loans or lines of credit.
To those business owners who are reading this and are searching for assistance with obtaining business loans and credit lines. It is important for you to understand that banking institutions located on Main Street are not the only source available to you. If you have a “low” credit score don’t let it sideline your search efforts. Take the time to contact me so I may explain the assistance that Business Credit Services, Inc. has to offer. No need to worry my income is not based on brow beating business owners into making an instant decision, we don’t offer 1st time caller discounts with the goal of forcing you to make an uninformed decision and I haven’t stalked anyone since Amy in the 2nd grade. If you’re not ready to contact me you can find an abundance of information about business credit, business credit worthiness and Business Credit Services, Inc at www.bcscredit.com.
