FORVAN Financial Firm Inc. Business Loan Financing 101
As a business owner you will require capital to take your business to the next level, whether that be if you are just starting a business or expanding an operation. What makes or brakes a business usually is the business owners ability to access funding.
Your personal credit history is the foundation to establishing credit in the name of your business/corporations. The directors of a corporation are able to apply for business funding. In the event there are more than one director register
under a corporation; the director that has strong credit would be the one to apply for the business loan funding. However if an individual registered a business as a sol proprietor or a corporation and the only director for that corporations; then receiving funding will depend primarily on personal credit worthiness.
There are currently three loan programs available to individuals looking for business funding which are:
· Government Grant Program
· Small Business Loan (SBK)
· Black Business Loan (BBL)
While there are several factors that go into the underwriting requirements for the SBL and BBL such as writing a strong business plan, owning property and or having at least 10% of funds required. There is a very important factor in determining eligibility for these two business loans; your Personal Credit Score. Which must be a minimum of 580.
Within the black community credit is the number one deterrent to receiving business loan financing due to poor credit management. We at FORVAN Financial Firm Inc. are on a mission to educate our clients about the importance of managing your credit portfolio effectively.
Your goals can be attained however it starts with taking that first step to establish highly effective credit which means that the banks are eager to do business with you because you have demonstrated strong credit management skills.
Your Credit is Important!
February 8, 2023