The Myth:
If the owner has excellent personal credit, the business is worth more.

The Reality:
Personal credit supports loan approval but has no direct bearing on business cash flow or risk profile. A high FICO score doesn’t mean the company is profitable, scalable, or durable.

Why It Matters:
Confusing underwriting approval with valuation quality can lead to overpriced transactions.

Practical Tip:
Separate personal borrower strength from business value — they’re two different analyses.