Business Loans are Personal

by: Kim Throndson

Nov 27, 2025

Although you are operating a business, banks look at your personal information as well as your business when loaning money. So before you meet with your bank, ensure your personal information is up to date.

The bank will review:

• personal credit score

• personal assets - potentially to use as collateral

• current state of your business via financial statements and tax returns

• future direction of the business via your business plan and financial projections

The stronger these elements are, the higher your chances of securing a loan with favorable terms.

Tips:

• check your credit score

• Make a list of your personal assets, and expect to be asked for a personal guarantee

• Have a mentor or professional review your business plan

• Involve your accountant in the application process