Yes, many business lenders look at personal credit when evaluating a business loan application, especially for small businesses or startups. This is because the personal credit of the business owner(s) is often seen as an indication of their ability to manage finances and repay debt.
When you apply for a business loan, the lender will typically look at both the credit history and credit score of the business owner(s). This can include factors such as payment history, outstanding debt, and length of credit history. In some cases, the lender may also look at the personal income and assets of the business owner(s) as well.
It’s important to note that not all lenders place the same weight on personal credit when evaluating a business loan application. Some lenders may be willing to overlook a less-than-perfect credit history if the business has strong financials, while others may require a higher credit score to approve a loan.
If you are applying for a business loan and are concerned about your personal credit history, it’s a good idea to check your credit report and score beforehand to identify any potential issues that could impact your application. You may also want to consider working with a business lender that specializes in working with borrowers with lower credit scores or other credit challenges.