Guaranteed Installment Loans For Bad Credit Business Loan Packaging 101 - Personal Credit Report
Financing a business can become a prolonged and abrasive process for those entrepreneurs that are unorganized and ill prepared from a documentation perspective. In addition to not having the proper business documents available and in some instances inaccessible, there's also an added level of scrutiny for these documents that needs attention before presenting the business loan package to the banker.
The business loan package is a comprehensive collection of information from both a personal and business standpoint that is combined together to give the banker and any additional staff involved in the underwriting process a solid foundation of the entrepreneur's business operations. Most importantly, though, the business loan package is the main basis by which the banker makes the recommendation to approve the financing request. It's not the exclusive basis by which the banker makes the business loan decision, but it plays a huge part, though.
One of the major documents included in the business loan package is the personal credit report. O.k., you may be asking yourself, "doesn't the bank typically generate this document upon receiving a signed business loan application?" Absolutely yes, but I encourage you to generate a copy of your credit report and have it available upon request (i.e. Within the business installment loans with bad credit online package of course). Here's the rhyme and reason for this: in addition to including a copy of your report, you also need to include a business memo explaining the overall condition and other pertinent info as needed.
Let's start with understanding the basics and what it means. Sure, we all like to talk about our credit score (well, at least those that have a score worth talking about, right), but very rarely do you hear anyone talk about the content of their report. The content of the personal credit report is where the real meat is, though. There are items (i.e. Credit types such as credit cards, department charge cards, car instant installment loan, other consumer loans, etc) on the personal credit report that have certain "weights" attached to them which when totaled equal your personal credit score. The other significance of the content of the personal credit report is the story it tells of the "way" an individual handles various types of credit.the "way" in which an individual handles various types of credit is known as character. Why is this important, you say, especially for obtaining bank financing? Character is one of the major pillars of credit. All character says is "the sincerity of an individual to comply with the terms and conditions of credit". Although the personal credit report is not an absolute in terms of giving the banker a fail safe approach to approving a business installment loans for bad credit guaranteed, but it definitely plays a huge role in shaping the business loan request in the banker's eyes.
Thus, it's best for the business owner and entrepreneur to preempt this portion of the business loan process and know the content of their personal credit report. Then, upon knowing the content of his or her personal credit report, they are able to generate a business memo explaining the good, bad, and ugly (especially the ugly) of their personal credit report to the banker to minimize any surprises.
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