The road to your Small Business Loan – Part II


In this series of posts, MarketFinance provides you with a complete road map to figure out your way towards getting a small business loan.


Sourcing a small business loan is a thrilling prospect as investing in your business is the principal gateway to growth in revenues and profitability.

However, going through the chores of applying and getting a small business loan can be a stressful and protracted process.


Market Finance’s “the road to your small business loan” series is a guide for entrepreneurs and small business owners that will help you navigate the process of sourcing a loan, reducing the ambiguity that runs through it. This is the second part of the Blog post.

Part II Credit History: the lifeline of Small Business Growth


For better or for worse, your personal credit history will play a key role when you apply for your small business loan.

If you have a history of responsibly handling your personal loans, lenders will look at that favorably when they look to forecast how well you will be able to manage your credit as a small business owner. A good personal credit score improves your prospects for getting a small business loan at a reasonable interest rate.


The first step before starting your loan application is to pull out your personal credit report, which you can do free of charge at

This credit score is what the lenders will be examining as they go through your application.


Taking a closer you look at your credit score

As you examine your credit score, be on the lookout for potential errors that are distorting your credit history and causing your score to drop. For example, it could show credit commitments that you actually never took out or inaccurate collections information such as for example collections that you had already paid off but are still showing.


As such, take a thorough review of your report, identify potentially erroneous information and verify their inaccuracy.

For an incorrect outstanding collection, reach out to the related collection agency and ensure that they inform credit bureaus the loan in question has been paid off.

Otherwise, if the report includes an outstanding loan that you didn’t know about, pay it down and then have the agency inform the bureaus of that.


As for other situations, you can reach out directly to credit bureaus directly by sending out a dispute letter and providing the related documents required to support your letter.

Credit Bureaus have a responsibility to look into these letters and provide an answer within a reasonable time period.

If there are no mistakes in the report, but your score is low, look out for areas that need improvement and act on them.


Since payment history is a key factor in your credit score, making sure you consistently settle your dues on time is a great place to start in order to improve your score.


As for the threshold credit score that would allow you to get access to credit financing, there is no clear answer.


As such, there is important upside from improving your credit score. Any steps in that direction that you can take during the period before applying are definitely worth it.


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