New York SBDC Research Network

For virtually every small business owner in the U.S., the importance of a good personal credit score when seeking a business loan can’t be underestimated. While it might feel counter-intuitive to be talking about your personal credit score when addressing a business credit need, a low personal score has been responsible for the undoing of many small business loan applications. Read more from BPlans

It’s one thing to knowingly make decisions that hurt your credit score. We’ve all been there, and sometimes tough decisions must be made. But it’s an entirely different situation to accidentally wreck your credit. In some cases, we make decisions without realizing the impact on our credit. In other cases we may know that certain decisions can hurt our score, but we don’t appreciate the severity of the impact. Either way, maintaining good credit requires more than casual attention. MORE from Credit.com .

Here’s one of the tricky things about credit scores: They’re about more than credit. Sure, it’s extremely important to make loan payments on time and use credit cards responsibly, but there are plenty of non-credit things that can do serious damage to your scores, potentially making it more difficult to get loans at an affordable rate in the future. Your credit score may not be top of mind while you’re driving to work or browsing the Internet, but if you’re not careful, you could jeopardize your financial future when you least expect it’s at risk. 1. A Speeding Ticket More from Credit.com

SBA and Dun & Bradstreet Credibility Corp have teamed up for a webinar series this month to help entrepreneurs learn how to build business credit and how to prepare for a business loan. It's free, but registration is required. • 5 Steps to Building Business Credit Tuesday, April 22 | 2pm ET > Click to register • Access to Capital: Preparing to Meet Your Lender Wednesday, April 30 | 2pm ET > Click to register AARP and SBA Webinar – The Secrets to Writing a Good Business Plan Have you considered developing a plan for your small business? Learn why it is important to have a small business plan during this free, one-hour webinar on April 22 by joining AARP and SBA as we help age 50+ individuals get your small business up and running. > Read more

Research Recap is a good source of data about equity, credit, market, and economic research.

From ASBDC : What do established companies looking to expand and start-ups in the earliest planning stages have in common? They want access to money and credit without having to provide a personal guarantee. This sentiment is consistently and strongly expressed by entrepreneurs... It’s no secret that building and expanding a business credit profile has become a greater challenge over the last few years. Many established small companies’ cash flow sheets were hit hard during the recession and as a result, many lenders and suppliers have either added a personal guarantee policy or modified their current policy. Most business owners know Experian, Equifax and TransUnion as the three major credit bureaus that provide information about their personal credit; however, they also may provide a credit profile about your company's creditworthiness.

Do you know your business credit score? Do you rely on your personal credit score for business transactions? Taking steps to separate your personal and business finances is a smart strategy. Here are tips to help you implement a strategy to build good credit in your company’s name.

From SBA : Do you know your business credit score? Feel unnerved about relying on your personal credit score for business transactions? As a business owner, taking steps to separate your personal and business finances is a smart strategy. Obviously, this means implementing a strategy to build good credit in your company’s name. What is Business Credit? Business credit is much like your own personal credit score – it’s a proxy for your business’ ability to repay its debts. When you start a business, this type of credit may not be at the top of your agenda. But as you plan to expand and grow, establishing good business credit will be helpful if you decide to apply for a business loan. Who Monitors Your Credit? Business credit, also known as trade credit, is the single largest source of lending and is monitored by business credit bureaus. These bureaus gather data on trade credit transactions and produce business credit reports for the benefit of credit issuers. Credit is measur

Building good financial credit is important. It can affect your ability to make large purchases and qualify for a loan or mortgage. Learn more about credit: How Credit Works Why Credit Scores Matter Build a Better Credit Report General Credit Tips

If there's one thing you need to hear about during the last days of the holiday buying season, it's your credit score. Sarah O'Connell from the Watertown SBDC forwarded this article to me recently from the LA Times , which reports the "facts" and "myths" associated with business owners & their attendant credit scores. She thought some of y'all would find it interesting. Much merriness to all!

Survey Based Assessment of Financial Institution Use of Credit Scoring for Small Business Lending: The introduction of credit scoring by banks for small business loans may help increase small businesses’ access to credit, according to a study released by the Office of Advocacy of the U.S. Small Business Administration. The report also found that relationships continue to be the dominant factor in banks’ decisions to lend to small businesses. Written by Drs. Charles and Adrian Cowan with funding from the Office of Advocacy, A Survey Based Assessment of Financial Institution Use of Credit Scoring for Small Business Lending, shows that banks, particularly those in urban areas, are moving towards the use of both owner and business credit scoring as a key metric in the small business loan decision. A copy of this report can be obtained here , and the research summary here . Should you need further information, please feel free to contact Charles Ou at (202) 205-6533 or advocacy@sba.gov . **