Personal Debt and Your Start-Up Business

Small Business Financing Small Business Insights & Tips
business debt

Ever wonder how a new business can get financing with no business history or credit? Watch to learn more.


Let’s talk about debt. What kind of debt hurts or helps you, especially in relation to financing your startup business?

We hear a lot of customers who are concerned about their personal credit and how its going to affect their ability to start up their business. What we look for as a lender is someone that has experience paying their obligations – and hopefully on time. ILS looks for a credit history of at least 5 years and ideally we would like to see 5 open trade lines – so we know that the customer is active in paying their debt obligations.

There is a very important distinction between revolving debt and installment debt (things like mortgages and car loans). Installment debt is tied to a piece of collateral which is real tangible personal property. And so those types of debts are not considered the same way as revolving debt is.

We see a lot of Credit card debt. We are typically looking for the ability for someone to borrow on a revolving line but we don’t want to see someone who is maxed out on revolving debt and has no ability to borrow. So it is just the right combo of debt. Certainly we are looking for someone with credit history. It doesn’t have to be 20 years of perfect pay history.

We always encourage you to apply – it costs nothing to do so. Let ILS give you a free analysis, especially if you are a startup business we can tell you where you sit! Contact ILS for more info on financing your startup or established business. web  – email  –  800-438-1470