Here's the actual truth to the question "Do you need to have business credit established (and enough of it) to get approved for a business loan?"
Yes and No - Hear me out...
In the traditional sense of a "Bank Loan" Yes, they will look at it to a degree but in the making of a "Private Loan" through a Private Lender who's willing to take a higher risk, not exactly and here why.
To get an "Unsecured Business Loan (Non-Collateralized without the bank) OR an "Unsecured Line Of Credit", you don't necessarily need the business credit profile IF your business has strong bank statements with at least $3,000 monthly revenue consistently for at least the last three months, you don't have insufficient funds or negative days during that same time period and your personal credit score is at least 500.
Most banks and business lenders do require it but times are changing and today we have access to revenue based business lenders if you know who to ask and where to look without destroying your credit score with multiple inquiries.
And you can get a "Non-Banking" business loan without business credit IF it's a private lender or a network of lenders that specialize in higher risk loans, HOWEVER...
The cost you'll endure are higher rates but that's not the "main" issue for most savvy business people.
Your "Benefit MUST Exceed Your Repayment" for getting the funds to make sense.
So I'll leave it at that for now - Do you have any questions about business credit and would like me to clear anything more up? Let's Talk Soon!
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