Does A Business Loan Affect Your Personal Credit?

Thanks for tuning in to Grow By Joe. This
is actually a question that comes up quite often. Does a business loan affect
my personal credit? It’s actually a great question. In this quick video, I’ll
explain it and there’s a few simple things that you should know when taking
out a business loan. Whether you’re getting a business loan
through an alternative source or through a bank, most business loans now are
personally guaranteed. It’s kind of become the norm. There are some products
out there that are not personally guaranteed. But what’s important is what
you need to know is when you’re taking out a business loan, usually that’s not
showing up or reporting to your personal credit. Again, there are some new type of
products that are out there that people might present like a business loan. But
they may actually be personal loans. And that’s when you want to ask the question
because some of those products do report to your personal credit. But most typical
business loans will not report to your personal credit. What you need to know is
that if the loan is personally guaranteed, that’s a situation where
lender could wind up filing a judgment or put you into collections. And that is
when it could wind up reporting to your personal credit. But if you take out a
business loan, you pay it on time, pay it off. Usually will never show up on your
personal credit. Just like most business credit cards. Another question that you
should ask is if you’re taking out a business loan, what is the collateral
that’s involved. Some business loans will use hard asset collaterals like real
estate or equipment. So it’s really important that you know when you’re
taking on the business loan. Is there any liens that are gonna be attached to my
personal property or attached to any large pieces of equipment that may be in
your business. That’s a really good question to ask. Because again, if you
default that hard asset would be the collateral and the lender would look to
take that back if you had an issue paying the loan back. So, it’s a really
good question to ask. But to sum it up and to keep it simple on this one, most
business loans do not report to your personal credit. If you are considering
taking out a business loan, I recommend that you check out the link below and
speak with one of my team members. I’ve created a platform that literally has 75
different lenders on it. There’s a lot of different options that are available to
business owners today and navigating through those options can be challenging.
A lot of lenders you can go through directly but it’s finding the right
lender that makes sense for you and your business. If you fill out that link below,
you can speak with one of my team members. And they can go through and
explain all the different options. Understand your business, understand what
you’re looking to get accomplished. And we can match you with the best financing
option that’s available for your business today. If you enjoy my videos,
please make sure you subscribe to my channel. Comment below if you have any
further questions I’d be happy to answer them I do reply back to those comments. I
wish you nothing but success and growing your business.
We’ll talk soon and take care.

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