One of the many things that sets On Deck apart from other small business lenders is the fact that our underwriting process focuses far more on the cash flow and health of a business than on the personal credit score. On Deck has lent over $80 million to small businesses, and we know that the true health of a business is not accurately reflected in a personal credit score (and we will have plenty more to discuss in this topic in the future!).
Banks on the other hand look at the personal credit score quite differently. If you have approached a Bank about a business loan then you are probably aware that your personal credit score is one of the first, and one of the most important pieces of their underwriting process. Their criteria for personal credit scores will vary, but the banks are looking for excellent scores – and in most cases having just a good credit score (and sometimes even a very good score) will actually disqualify you from getting a loan.
While we are working to change the current system, we also believe business owners should do what they can to give themselves the best options for capital should a situation or an opportunity arise.
To do this effectively, we suggest:
1) Signing up for the free On Deck service to view your business through the eyes of a lender. See what information lenders see when you are applying for a loan, and learn how you can improve your standing. Sign up here.
2) Continually work to improve your personal credit score. Here are some tips from the team at Credit Karma on improving your credit score.