Business Loans Market Changes

Business Loans

Getting business loans has become a much more difficult proposition in the new financial market. We’re going to discuss some of those changes, and what they mean to you, in today’s article.

In general, the changes to the business loans market can be seen as either good or bad, depending on your perspective. Before 2009, it was very easy for new businesses to get large loans with very little backing for them. Simply having a good credit score with a quick application could get you funded in no time. In some ways, this was great as it meant there were very little barriers to entry. In fact, some great companies and ideas came to light during this time.

However, having a low barrier to entry is a double-edged sword. Many of the self-employed, professionals, and businesses were given loans they really shouldn’t have had. This slow erosion of requirements continued until the financing industry bubble burst.

So, what is the state of things today? For one, you’ll need a lot more than just a high personal credit score. Don’t think you’ll be able to reset the clock with a good business score, either. Almost all banks rely heavily on your personal credit.

Why do banks rely on your personal credit? They rely on it because it gives them an insight into your character that your business score lacks. You’ll need good credit, proof of income (both personal and business), as well as the other required paperwork. On the plus side, interest rates are at an all-time low. Thus, if you qualify for one, you’ll get one of the best loans available in decades.

For more information, go to Business Loan at

Business Loans Market Changes was last modified: November 8th, 2011 by Amit Kraidman
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