Your business must have the following attributes:
Without business credit, expect to provide the following:
How does applying for corporate credit impact your assets?
Serving as a personal guarantor for business loans places your assets at risk. This means the banks may sue you to recover personal assets to cover business liabilities. Not serving as a guarantor will protect your personal assets from any possible business failure. In addition, tapping into your own savings may not be advisable if lines of unsecured credit is available to the business.
Banks may also sue you for payment, if you used personal credit cards for business activity. If the business tanks, then you’re stuck holding the bills on a personal end.
Using personal credit to apply for business loans also reduces your credit score.