"Your personal credit score can make it look as if your household is carrying way too much debt," observes Mitch Jacobs, chief executive of Manhattan-based On Deck Capital. "It takes money to run a healthy business, so many of the best entrepreneurs get turned down for credit. It's ironic." Mr. Jacobs notes that in 2006, "banks turned down more than 5 million business owners due to their personal credit scores, and that was when liquidity was everywhere. It's not the economy; it's a technology and infrastructure problem."
In most cases, the loan providers would insist on maintaining a minimum debt-equity ratio to safeguard amount lent. These restrictions can severely handicap the entrepreneur’s ability to overcome the crisis and utilize the fund to his maximum benefit. Proprietary software can connect a company's cash registers to its own system in order to analyze real-time financial information for a few days. Thereby benefit in terms of establishing a good credit score which is always helpful in creating a better credit image of any company. Financing institutions these days take this software as a basic tool to improve credit scores of companies thereby helping them making eligible for business credit loans.
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