Business Owner Bankruptcy - It Will Not Conflict with a True Business Based Loan for Start Up Business Financing or Business Debt Financing

A true business loan is based on business credit, not personal credit, so a bankruptcy or any other credit problem you may have had in the past will have no bearing on any of your application for a true business loan. For example, if you apply for a loan for start up business financing or business debt financing and the bank does not require a personal credit check or guarantee on the loan, the bank will not check your personal credit history, nor will the loan reflect upon your personal credit. No credit check on your business credit will reveal personal credit information, and vice versa.

You must ensure, however, that the financial institution at which you apply for your loan does not require a personal credit check or personal guarantee. There are some institutions that do, and some that do not. If you apply for a business loan at an institution that does require a personal credit check and guarantee, the loan will be affected by your personal credit and you may be denied based on past issues such as bankruptcy or unpaid debts. It is important to ensure that the business loan you are applying for does not require a personal credit check or guarantee. For help with keeping you personal credit separate from your business credit after personal bankruptcy when applying for start up business financing or business debt financing, please contact us.