Your personal credit score is perhaps the most import tool used by lenders in their decision to provide financing for your business. A credit score above 700 is considered good. In this case, assuming that you meet the other lending criteria, it is relatively easier to obtain financing.  If your score is 600 - 700, it is a bit more difficult to get a business loan. However, many small business-lending institutions will look at factors like, experience in the line of business as a reason to do the loan. Most often, many banks will do the loan with an SBA guarantee. Finally, if your score is between 500 and 600, it is fairly difficult to get a loan. However, there are numerous government back micro-lender than may do these deals.

What does it mean?

Your credit score simple gives creditors an indication of your probability of paying your debts. A high score (over 700) indicates that you will most likely pay back, and a low score (under 500) means that you will not pay.

What to do?

The first thing to do is to get a copy of your credit report "with score". (Not all reports have scores, especially the so called "free" reports") You can visit the websites of any of the 3 major credit bureaus. Or you can access all three by clicking here.

The report will not only give your score, but also it will tell you what to do to improve your score. In addition, if there are errors on the report that are affecting your score, they will walk you through the process of fixing them.

Indeed, not all lenders require that you have excellent credit. The key is to find the lender that will work with businesses with average credit scores. If you need help in accessing these lenders click here