I need a Business LoanNeed a business loan.
Yet, if your business is the part that borrows cash and creditors ask whether you own your home, it does not necessarily mean that they want to take it as collateral - more on that in a second. Probably the least commonly perceived cause that creditors ask about your homeowners credit rating is because of the broader impact it has on your individual loan histories.
So important as the business is, many creditors want to know about the men and woman behind it as well, so they often look at the company's loan histories and your own individual loan record. To be a house owner is important in this respect for two things. Residential property also links you to an adress for the time being - another small detail that will help the creditor consider your request to be less risky.
Because of these considerations, it is something of a fast-track process for the creditor to get to know your own situation - if you own your home, it means that many of the above mentioned items have already been proved to another creditor. If you give a face-to-face warranty, you agree that if your business cannot keep up with the refunds, you will pay back the money in person.
Owning a home is important for your own guarantee, because with some money behind you, you can pay back the loan if the worse comes to the worst. What is more, you can be sure that you will be able to pay back the loan if the situation gets worse. It is also important to note that for face-to-face warranties, the creditor will ask for the owner of your home's credit history in order to determine the net value - not because your home will be directly affected.
Basically, you definitely don't have to be a house owner to get a business loan - but you may find that it makes your usage simpler, lowers the interest rates or gives you easy entry to a bigger amount of cash. The financing options have been chosen by HM Treasury to assist companies in their search for financing opportunities when they are not successful with the big banking houses under the Bank Referral Scheme started in November 2016.