Why establishing business fundability matters and how to achieve it easily.
Fundability matters. It's so easy to get lenders to decline loan applications and
creditors to not give you credit. Building a fundable business will help
you get approved. The business will stand on its own. It can't look like a hobby
you do in your spare time, even if it started off as a side gig.
Let's check out business identification numbers. The best known is the DUNS
number. Go to D&B Website and look for your business. dnb.com/duns-number
can't find it. Then get a free DUNS number. A DUNS number is how D&B
gets a company into their system. Your DUNS plus payment experiences get you a
Paydex Score with no DUNS number there is no record and no Paydex Score. Another
I.D. number is the BIN number from Experian. BIN stands for business
identification number Experian's BizSource assigns a BIN.
You need to get set up with the business credit reporting agencies. A business
must be listed with the reporting agencies. This is necessary to establish
business credit. You can also be denied funding if you don't have a credit score.
You can also get a denial with a low credit score with D&B, Experian or
Equifax. Seriously, consider Business Credit Monitoring. You may want to start
credit monitoring. We offer it for less. See creditsuite.com/monitoring.
Check all listings with the business CRA's for accuracy and
completeness. You want to be sure any info they have is accurate. See
creditsuite.com/reports. Let's look at business bank accounts. You
need a bank account devoted strictly to the business. This helps at tax time. The
IRS does not want you commingling funds, make accounting easier and reduce the
risk of audit. Keep personal and business funds separate. The simplest way to do
this is with a separate account. The account opening date is the business's
opening date. Far as lenders are concerned, longer history is better.
You always need to be looking to the future. That future is bank and other
loans and other kinds of funding. Set your business up for bank loan approval
success. Keep a balance of ten thousand dollars or more for at least three months to get a
low five bank rating. This makes it so. Most conventional banks see your
corporation is fundable. If you don't have a low five, you can still get
corporate credit and alternative loans, but you would not be able to get a
conventional loan
Make sure to get a business merchant account now your business can accept
credit and debit cards. Studies show customers will spend more if they can
pay by credit card. This also increases your finance options.
Personal credit quality matters, personal credit quality is often helpful for
getting funding, so if personal credit is not in order.
Now is the time to get it straightened out and improve it for a business loan
at a conventional bank. You need good personal business and bank credit.
Let's recap. Keep all records consistent to ensure Fundability set up your
business legitimately with a domain, phone numbers and address and more, get
all I.D. numbers and register with the IRS. Choose a business entity. Corporations
are best. Make sure you've got all the necessary licenses. Set up your business
bank account for fundability and get your personal credit house in order.
Contact us today to learn more about why establishing business fundability
fundability matters and how to achieve it easily.