Updated: Jan 26

There is a right way to apply for credit, and about a million wrong ways. Most small business owners, especially those just starting out, don’t understand that applying for credit in the company name is very different than applying for personal credit. Lenders factor in the business age, size, industry, and previous payment history when considering risk assigned to your business.

What’s tripping up your business credit application process?

Applications for business credit are not processed the same way as personal credit applications. There are a vast array of factors that lenders need to take into consideration when making business credit approval decisions that would never be included in personal credit decisions, such as:

  • What is the legal structure of the business?

  • How long has this business been operating?

  • How many employees does this business support?

  • Do we know who the principles are?