Business Credibility: Make Sure Your Business Meets Lending

Criteria Before You Apply

Lenders and creditors have rather specific requirements of what they want to see to approve you for credit and financing. If you meet these criteria, you often get approval. But if not, you’ll get a denial. You’ve probably been turned down before, due to not meeting one of these criteria. But in this section we reveal the lender’s secret formula for approval. So you know you’ll get an approval before you apply.

The first step in building business credit is to ensure you have a business entity set up. Per Wikipedia: “A business entity is an entity that is formed and administered as per commercial law in order to engage in business activities, charitable work, or other activities allowable. Most often, business entities are formed to sell a product or a service.”

Setting up your entity is what allows you to do business legally with your state and the Federal government. So it’s an absolute necessary first step. Any entity can build business credit. But to remove personal liability, choose an entity like a Corporation or LLC (Limited Liability Corporation).

After your entity is set up, next you must get your EIN number from the IRS. An Employer Identification Number or EIN (also known as Federal Employer Identification Number or FEIN) is the corporate equivalent to a Social Security number. But it is issued to anyone, including individuals, who must pay withholding taxes on employees. To do business legally, you must have an EIN.

Google “how to get an EIN number”. Look for the irs.gov link only. Do not use any other link other than irs. gov. Other links will try to charge you. But your EIN number is free. Don’t pay a company for it!

Your Business Name

When choosing a name, try to choose as basic and generic a name as you can that doesn’t peg you into one industry. There are a lot of industries which fall into restricted lists. General consulting type names work best as nobody will deny you then. Any other industry specific name might restrict your ability to get money with some lending sources and credit issuers.

Your Business Address

When applying for business credit ensure you use a real physical address. You cannot use a PO Box or UPS address. We suggest that you not use your home address. Instead, get a virtual. With a virtual address, you set up an address where you get your mail. This is a real physical address. You get the benefits and perception of being in a big office building, without needing to incur such a cost. It is a great alternative to having a real physical address.

Your Business Phone

Don’t use a personal home phone or cell phone. Yes, lenders will know! Do not even try applying for funding without a real business phone. Voiceover IP numbers are okay. You should have a toll-free number, unless you only deal with local business like a pizza shop. Your number must have a listing with 411. Try www.listyourself.net for a 411 listing.

Your Professional Website

Your website must look good and describe your products and services. Also, set up your professional email address, like yourname@ yourcompany.com.