1. Minimum Qualifications
Qualifying w/ a personal guarantee is straight-forward. There are only 2 requirements: good personal credit and healthy projected income. Lenders want to know how well an applicant has managed their personal funds, and if the applicant is able to project substantial earnings from their business's products or services.
2. Quick Transfer of Funds
Business credit refers to the securing of credit cards under your business entity. Typically, funding w/ a personal guarantee is swift and seamless. There are no long waits or strenuous application processes. Do you recall how quickly lending decisions came back after you applied for personal credit cards? Business credit decisions work the same. Most decisions are instant while others take a little over a week.
3. NO attachment to your personal credit file
As a business owner/investor it's best practice to keep your personal credit clean. A clean credit profile characterizes you as an attractive business partner and ideal lending candidate. The benefits of great credit are endless; fortunately, business credit allows you to maintain great personal credit while still granting you access to the capital you need. Although, you are personally guaranteeing funds, business credit does not appear on your personal credit file unless you default.
Making the minimum payments required is non-negotiable. Requirements for business credit with a personal guarantee are minimal; however, simply applying does not guarantee maximum funding. We suggest consulting an expert or a professional service. They should be able to assist you with qualifying for and securing maximum funding.