Important Insights on Business Credit and Personal Credit💚⬇️

Daniella Williams

May 29 • Free Gems📓🖊️

🤮 LIES, LIES, LIES 🤮

I urge you all to read this carefully—and perhaps multiple times.

Do you have BAD PERSONAL CREDIT?

❌ Business Credit is NOT the solution! ❌

PERIOD!

Banks, credit unions, the SBA, and alternative lenders do not consider business credit in the same way many people assume. In reality, not having established business credit will not damage your chances of approval with these institutions—unless you are specifically applying for factoring.

🤯 READ THAT PART AGAIN!

Here's what you need to know:

- Business Credit without Personal Credit WILL NOT secure you a loan.

- Business Credit without Personal Credit WILL NOT secure you a line of credit.

- Business Credit without Personal Credit WILL NOT secure you equipment financing.

To qualify for any business funding, you need to meet a minimum required personal credit score. This is a hard and fast rule! 🛑

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Let’s discuss MCAs (Merchant Cash Advances):

You may have seen advertisements claiming that:

➡️ Personal credit doesn’t matter

➡️ No minimum credit score

➡️ No credit checks (I'll explain that further)

➡️ Credit matters less than revenue

Beware—these statements are MISLEADING! The individuals making such claims may not be fully informed, or worse, they may know the truth and still mislead you. 🗑

For MCAs, which are among the most popular funding options you need to understand the following important points:

💯 You will typically need a minimum personal credit score of 450 to qualify for an MCA. This is considered the very bottom of the acceptable range.

💯 Many providers perform soft credit pulls, and since the advance doesn't appear on your personal credit report, they give the impression that there are no credit checks involved.

💯 Your revenue plays a significant role in MCA approvals. Most lenders will request three months of bank statements and expect you to show a monthly revenue between $2,500 and $7,500.

❌❌❌ Important clarification: MCAs are NOT loans! ❌❌❌

This is why some companies refer to them as "working capital." They are actually advances on your future sales and cannot be legally classified as loans.

😵‍💫 It’s concerning that many individuals on platforms like Facebook are offering this financing product without even realizing what it truly is.

In closing:

When considering advice from any expert—myself included—it's crucial to do your research. Google is just a click away. I encourage you to compare what I've shared with opinions from others and conduct your own investigation.

🔎 LOOK IT UP! 🔍

If you’re spending hundreds or even thousands to build business credit while ignoring your personal credit, thinking you’ll be set in 4-12 months, prepare yourself for a disappointing (and potentially devastating) reality check. 🥺

Lastly, to the self-proclaimed business credit experts who may disagree: 🤭

What can business credit actually get you?

✅ Vendor lines (net 30-90)

✅ Credit lines (not loans)

✅ Vehicles

✅ Real estate

You can indeed leverage and benefit from business credit, and I wholeheartedly encourage its establishment.

BUT…

BUSINESS CREDIT

Does

Not

Get