LucidCaledonia
New Member
I've never needed any business loans, but it has made me wonder whether your personal finance affects your ability to obtain business finance?
Does Personal Finance Affect Ability To Obtain Business Finance?
St Rhenium
New Member
Without doubt, although it depends on the kind of financing, the amount and the provider to what degree. If you build up a reputation for throwing money away nobody is going to touch you with a barge pole just because it's for a business this time 
MarkB
New Member
Staff member
There will be occassions, especially in the early days, that you will be required to give a personal guarantee on any business loans. So to an extent your personal circumstances could impact your business's ability to raise funds.
selfemployed
Active Member
I totally agree with the comment above - in the early days of your business you will likely be asked to give a personal guarantee on business loans. If your credit rating is not up to scratch then you might struggle - rightly or wrongly you might still be paying the price for past financial issues.
Needhelp
Active Member
As mentioned above the vast majority of new businesses who apply for finance will no doubt have to obtain some kind of guarantee from directors/business owners. This is not too bad as it means that all parties have "skin in the game" and will do their best to make it work.
selfemployed
Active Member
If you put yourself in the position of lenders, unless there is a degree of risk for individuals, what other motive is there to really really push their businesses?
