Hey it's Ty Crandall, with Credit Suite and in this short video, I want to talk to you about your
business address, and I want to talk about some of the biggest reasons that business loans and credit
lines get denied because your address doesn't meet certain criteria that lenders and credit
issuers have. So we call this fundability and what fundability is is your ability to actually
get money from the banking system whether it be conventional banks like Bank of America or Wells
Fargo whether it be Fintech lenders all lenders and credit issuers have a secret set of criteria
you must be to get approved and one of the things in this criteria is your business address. So
there are a few different ways you can set up a business address some you want to avoid
and some you want to entertain. Okay first of all let's talk about home-based businesses if you are
operating a business from your home and you are using that address on your application for loan
and credit cards you will get denied with some sources. Now other sources will approve you just
fine with home base home-based business but other sources will not at all entertain a home-based
business. How do they know they know because all residential commercial or even PO Boxes are
put into different categories and lenders use an algorithm to easily determine the type of address
that you have. Now if you're using a home-based address for example some sources like Walmart
will not approve you for a corporate credit card other sources like Amazon will approve you. So
that's the way that the system works a home-based business will automatically get you denied for
many types of loans and credit cards but other sources still may approve you but and oftentimes
will give you higher interest rates because they see it as a little bit of higher risk. Now another
way you can go with an address is a UPS address or a PO Box these should be avoided at all cost.
UPS addresses and PO Boxes are housed in a place that all lenders and credit issuers can pull
from, and determine that that's exactly what they are they're mailboxes and when you're using a
mailbox location like that that will get you an automatic denial at most places that offer
commercial credit cards and many places that offer loans as well. The bottom line is it's much more
difficult to get money for your business if you're using that type of mailbox like UPS or a PO Box
sometimes even impossible with a lot of different kind of lenders and if you do get approved you get
approved for way less money at way worse terms than you could have gotten if you used another form
of address. So number one type of address to avoid PO Boxes and UPS addresses stay away from them
at all costs, and also try to stay away from a home based business if you can but it's way better than
using a PO Box or UPS address what's the best kind of address an actual physical address if
you have a real location a physical address for your business that's in a commercial building
that's what lenders and credit issuers want to see most. Now if you don't have that I'm going to
give you a shortcut but the reason is is because big successful businesses typically operate out
of some kind of physical office. So if you have an actual location in a commercial building that
will give you the best chance of getting approved for credit financing but if you don't have that
shhh there's a way to cheat. The way to cheat is called a virtual address and with a virtual
address you're actually renting the address itself and you could still get mail there as a
matter of fact they'll take your mail they'll scan their mail they'll send it to you but you're not
getting a PO Box, you're not getting a UPS address and you don't have to pay an expensive rent or
lease like you do if you're actually leasing or renting a location. So examples here are Regus,
or Alliance or DaVinci. DaVinci, Regus, Alliance, they all offer these kind of virtual addresses and
here's what they do they buy a big high-rise building in Tampa Florida they rent out some
locations then they only rent the actual mailing address to other places and they create like
we work type of universal spaces where you can pay a monthly fee and have access to their
conference room in their waiting room and just buy an office and rent the office whenever you need it or
just get your mail at that location in which they turn around and mail back to you they even scan
it and email it to you so you can get your mail the same day it comes into that office. So from a
lender's perspective you're using an address and a big high-rise building in Tampa Florida making
you look really really really credible okay but the reality is you're paying a very small amount
of money just to rent that address. Now this is beneficial for a lot of different reasons first
of all when it comes to clients when it comes to prospects it makes you look more credible
for them as well when they Google your address to see you're in a big high-rise building in
Tampa Florida, Dallas Texas, Seattle wherever you may be it gives you more credibility. Plus these
kind of sources like Regus like DaVinci like Alliance have all kinds of services that
you can get from them where you can get your mail there you can actually use their conference room
you can use their waiting room you could get an office part-time. So you could really use this for
all of your business needs for a smidgen of what you'd pay to actually rent or lease a location.
So virtual addresses are a great alternative to you actually getting a physical location
and the number two best option you have for getting an address that will make you more
fundable for lenders and credit issuers so remember when setting up your address
it's also important that the address is congruent on all of your records. The number one reason that
we see business owners get denied for financing is that the address they put on their application
doesn't match their secretary of state records it's such a basic thing but if you think about how
we run our businesses it makes sense we set up our secretary of state records we don't think about
it , we file an annual report once a year sometimes we skim through and just say all the information is
correct when it's up when all often times it's not. So making sure that your address is the same on
all of your records, your utility statements, your bank statements, making sure it's the same on your
website the same on Yelp and Bing and Yahoo making sure that it's the same on your loan
application your credit application and especially secretary of state is vital to getting approved for the
most amount of money for your business. So make sure you have the right type of address for your
business option one real physical address, option two get a virtual address, option three get a
home address and that's it no more options stay away from option four which is PO Box and UPS,
and also make sure that your information of your address and your business name
is congruent on all your records online and offline especially with secretary of state. If you
follow this advice you'll be well on your way to being fundable and getting the most money for your
business at the best terms. To learn more visit us online at creditsuite.com that's creditsuite.com
and grab our free guide on other fundability factors and building your business credit.