How do you get approved for a business loan? Today, we're talking about just that we're actually
going to give you five different tips to get approved for the most financing at the best terms for your
business, we're going to take a look at the fundability formula that lenders use to make
lending decisions about you like whether or not you should be approved or not even
the rates and terms that you'll pay we're going to take a look at the credit reports
that lenders use talk about how to get those reports at absolutely no cost and
how to improve your credit reports and scores to be able to get approved for even more money
we're even going to dive in and take a look at the cash acquisition formula
that lenders use and talk about how you can tap into this to know within seconds the type
of financing that you can get approved for we've got a lot to cover so let's dive in.
When it comes to getting approved for a business loan there's a lot of things that lenders look at,
and today I want to talk about five very important things if you get these right
radically increase your chances of getting approved. It starts with fundability, fundability
is the formula that really determines how much money you can get from the lending system it's
the stuff that lenders and credit issuers are really looking at when they're reviewing your
application, look you may think that you've been denied before because of credit because of income
but the reality is most applications are denied before that stuff's even looked at, because you
don't meet these basic fundability factors and two things you need to know about fundability are your
address and your phone number. So when it comes to your business address you want to avoid PO
boxes mailbox addresses UPS addresses at all costs these are housed in a database that lenders
and credit issuers can access and they know that you're using that strictly for mail purposes, so you
really want to actually consider a retail location if your business warrants one and if not then you
really want to consider a virtual office, so a virtual office is offered from places like Regus, Alliance
and Da Vinci and this is where you can have an address and a high-rise building in Tampa Florida,
get your mail there they even scan it and send it to you, so the perception you're creating
for lenders is that you're in very expensive commercial space but the reality is you're paying
pennies on the dollar for that space because you're just really renting a legitimate mail
address, so you want to really stay away from home address stay away from PO box, UPS
addresses and consider a retail location or a virtual office instead the next thing you want to consider
is making sure that your phone number is set up the way that lenders and credit issuers really want it
to be you have to avoid using mobile phones you have to avoid using home phones on your
application for credit or financing, you really want to consider getting a real business line or
even a voice-over IP line that's available from a lot of different places like ring central even
freedom voice these kind of numbers will help give you a lot of credibility especially if you get the
number as toll-free, lenders prefer that you have a toll-free business number and they're really going
to look to make sure that phone number is listed with 411, look this is one of the secret criteria
that a lot of people just don't know about but a lot of lenders and credit issuers do a basic
check to even see how established your business is just by seeing if your phone number is listed with
411, so make sure your phone number is listed with 411 and if your address and phone number
listed that right way then it goes a long way to helping get approved for financing speaking
of getting approved for financing lenders are going to look at your business credit reports
even though they might not tell you that they are, there's a law called the Fair Credit Reporting
Act that when somebody pulls your consumer credit report and makes a denial decision based
on that information, they have to tell you by mail which credit bureau they use to get the information
and why they actually issued the denial, but that doesn't exist in the business world the Fair
Credit Reporting Act doesn't apply to commercial credit, so the problem is is that in a lot of cases
lenders are pulling your business credit reports and you're not even aware that they're doing so. So
you want to make sure that you get your business credit reports from Dun & Bradstreet, Equifax and
Experian, and at the end of this training I'm going to teach you how to do that for free you want to
get these reports you want to look at them review them and make sure you're adding accounts that
report to the business credit reporting agencies having established business credit having trade
lines or accounts report on your business credit profiles and paying those accounts on time or
early to making sure you have good scores is very important, to not just getting approved but getting
approved for the most money at the absolute best terms now you can go to
creditsuite.com/reports just to see if you have any established credit with the reporting agencies now
and that'll give you a preliminary idea of whether you're established or not and know
the next steps to actually get established if you're not established already. You also need
to make sure that all of your information is congruent look the number one reason
that applications for credit financing are denied is because the lender thinks the application's
fraudulent and believe it or not it's really easy to fall into that bucket of potentially
fraudulent applications, because what happens is that you ultimately don't have information
that matches when you go to apply for credit or financing, so for example when you go to apply for
Bank of America credit card then what happens is if you actually come in and they find incongruent
information online with Secretary of State for example they're going to deny your application.
So they take your application data and can't match it precisely with even Secretary of State
data then they can't verify that the address or the business that's actually applying is the same
one that they're locating online, so all of your information has to be congruent this means your
offline listings like your utility statements your bank statements, and it means all of your online
listings your website your social media pages, even all of your listings on places like yellow pages
anywhere that your information is listed you need to make sure that that information is congruent
and you should also know exactly what lenders are looking at to determine if you should be approved
for financing or not. I call this the 3 C's cash acquisition formula and it's really simple
for you to know within seconds using this formula whether you can be approved for financing or not.
Lenders are always primarily looking at one of 3 different things to determine if you should
be approved for financing the first is credit. How good is your consumer and commercial credit
if you have good credit well that opens up a lot of funding opportunities just based on having good
personal credit, if you establish your business credit well that opens up all kinds of revolving
credit opportunities for you just based on your business credit. Now the second C in the formula is
cash flow, if you have consistent cash flow in your business and you've been in business typically six
months or more well there's all kinds of cash flow financing options for you as well. Cash flow
financing merchant cash advances even financing from places like PayPal, Square, and Stripe all
become available with 6 months time in business and consistent cash flow, and the good thing about
this 3 C's formula is you only need one C to get approved, so if you have consistent cash flow
your credit doesn't really matter you're still able to get approved for this kind of financing
even if you have bad personal credit. Now the third C is collateral and there's a lot of different
types of assets that can potentially work as collateral to qualify for business financing
stocks, bonds, 401ks, IRAs, even inventory equipment can all be used for you to actually get
approved for financing even if your credit's bad even if you have no cash flow. So when lenders are
approved at to determine if you should be approved for financing or not they're looking at credit cash
flow and or collateral. The more the C's you have the better type of financing you can get so if you
have collateral good personal credit good business credit and consistent cash flow verifiable for tax
returns for example, then you're able to get the coveted SBA loan, but even if you have one of those
C's you can get one of those different types of category financing and if you have even two of
the C's like credit and cash flow then you can even qualify for other kind of financing like
term loans. So this is hopefully a good amount of tips that will help you get approved for the most
amount of money for your business if you'd like to talk more give us a call for a free consultation
on a free consultation we will help you get your business credit reports for free we'll
even go over those with you and give you tips and tactics to improve your business credit we'll do
a fundability assessment not just looking at your address and phone number but looking at a lot of
the factors and there's 125 factors in fundability altogether, so we'll help look through a lot of
those factors help you realize what you need to fix to be able to have the best chances of getting
approved for the most money, and will also come in and we'll also do a funding qualification we'll
tell you all the financing you can qualify for right now. You can get that consultation by giving
us a call at 877-600-2487 or scheduling online at creditsuite.com/consult did
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our next training where we talk about more cool ways to get money to start and grow your business.
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