Does applying for a business loan affect credit score?

Yes, applying for a business loan can have an impact on your credit score. When you apply for a loan, lenders will typically perform a hard inquiry on your credit report, which can result in a slight temporary decrease in your credit score. However, the impact is usually minor and short-lived. It’s important to consider your loan applications carefully and only apply for loans that you genuinely need and can manage responsibly. Multiple loan applications within a short period can raise concerns for lenders and may negatively impact your credit score.