Needs a Little More Light
Every business has to struggle to break free from their past in order to maximize its potential. This requires fixing past missteps and learning new skills.
Based on your Business Assessment Scores, it would appear that you are in this phase of development. In order to grow to your maximum potential, you may need to take a step back so you can move forward. We’ve all had obstacles get in our way that we’ve needed to clear.
We want to introduce you to Ivan, who may have been experiencing the same challenges you might now be facing.
Ivan a boutique fitness studio that has been successful in recent years. To continue to grow, Ivan needed to expand beyond his current location. Ivan is a people person, who has a lot of friends and had a lot of fun. He wasn’t always careful with his credit, so he’d taken some hits. He got his current location from a friend, but when he came to us, he needed capital to grow. Banks weren’t willing to work with him, so he felt stuck and frustrated.
Many small businesses don’t realize that their personal credit can have a negative impact on their ability to get a business loan especially if they are new and do not have sufficient assets to use as collateral. This was the issue that Ivan was facing.
Curse of Personal
Ivan’s case is all too common. Personal credit score impacts access to business capital for owners, an unfortunate truth in small business lending. David wasn’t in terrible shape, but it was going to take a few years before he would be able to reach the magic 700 number.
Why is personal credit such an important factor, even if the company has a good track record? It’s all about risk. When getting a small business loan, banks worry about how a principal will react when challenged by personal debt. Will his or her behavior affect the business?
Here a the five things you can do to improve your credit score:
- Pay Your Bills on Time
- Get Credit for Making Utility and Cell Phone Payments on Time
- Pay off Debt and Keep Balances Low on Credit Cards and Other Revolving Credit
- Apply for and Open New Credit Accounts Only as Needed
- Don’t Close Unused Credit Cards
How Did We Help Ivan?
Ivan secured the loan and was able to expand. He was able to grow at 50% over the time period, so he more than recouped the gain from the loan. We are so proud of Ivan. He was able to expand his business and fix his personal credit. So, when he was ready to expand again, he was able to achieve much better rates.
“You know, I went to ProStrategix feeling pretty awful. I was beating myself up for things I couldn’t change. But they didn’t judge me. They took the time to explain everything to me in a simple way that I could understand. After we went to the bank, I felt so much more confident. After we received the loan, I was thrilled.”