When you apply for a working capital loan in Singapore, your personal credit record will usually be searched by the applicant banks. Your personal credit record will affect your commercial loan applications as well.
If your credit rating is low, your commercial loan application might be adversely affected.
Your credit rating is tied to you, the director, and not your company.
Hence, even if you apply for financing for another company you own, your application might still be affected if your credit rating is low.
One common reason that causes your credit rating to plunge is that you apply to every bank you know. This is actually not advisable because if most of the banks you apply to reject your SME loan applications, your credit rating might drop.
A low credit rating will hinder your business’s future funding applications approval chances.
A SME finance specialist will be able to help identify which banks’ credit criteria are suitable for your company’s profile to maximize business loan application approval.