How do you set up and structure a business where you're fundable I mean how do you
create your business to a point where lenders and credit destroyers want to give you money. Well
that's exactly what we're talking about during today's training, I'm actually going to break down
seven different things you want to do right now to make sure your business is fundable we're going to
talk about what lenders and creditors really want to see, we're going to pull back the curtains and
look at their secret approval formula decode it and talk about how to structure your business
where you actually can get the most amount of money and at the end of this training I'm going
to give you access to special resources that will help you do this even quicker to help set up your
business where you can get maximum capital look, we got a lot to cover, so let's dive in.
Okay so let's dive into seven different tips seven things that you really need to know to set up
your business words fundamentally let's start right from the beginning which is your Entity
look lenders and credit districts prefer a corporation as the premier entity that
you want to choose now, you can also choose an LLC although an LLC is an official entity type
it can kind of be overlaid other entity types which give you a lot more credibility now what
you want to avoid at all cost is being a sole proprietorship, look even SBA refers to sole
proprietors as entrepreneurs who are experimenting with a business idea or concept, they
dont even really look at it along with a lot of others in the credit financial space
as an actual entity, so if you want to be able to set yourself up for the most amount of money my
first tip is to get the right kind of entity which is preferably a corporation or an LLC
my second tip is to make sure you get your EIN number look your social security number is what's
used in this country for the IRS to recognize you as an actual person and a citizen of the United
States well that's exactly what your EIN is your EIN is used by the IRS and other entities lenders
credit issuers to actually see you as a real business as a real entity here in the United
States now you can actually surprisingly have a business without an I or without an EIN number, so
for example, if you're a sole proprietor you are the business you and the business are one and
the same so you don't even need to have an EIN number, but getting an EIN number is crucial to
giving you the credibility that you need to build the fundable foundation and it's also essential if
you ever want to build a business credit profile and score because your business credits linked
to your EIN, the same as your personal credits leave linked to your social security number,
so make sure you get an EIN number, there's only one place you want to do this where it's 100%
free and that's IRS.gov, so after you've set up your entity with your Secretary of State
make sure you go to get your free EIN number from IRS.gov and use that EIN number when you
apply for credit and financing it goes a long way to helping you set up that fundable foundation.
Now my next tip or tip 3, is to set up a separate business address, look we live in a
world where a lot of people are working from home but a home-based business versus a business and
a high-rise building in Tampa, Florida, one has a lot more credibility and so if you have a
choice of the perception that you give lenders and credit issues we always want to give them
the perception that you're operating out of the high-rise building in Tampa, Florida, there's a
lot more lenders and credit insurers they're going to want to give you money that way and
you're typically going to find that your approvals and terms are a lot better when you actually have
a real physical address, so here's kind of the order that you actually want to go through first
of all if you can get a retail location, get a real retail location if you have a real retail location
it goes a long way to giving you credibility and to helping you build a strong fundable
foundation, but let's say you're working from home or you don't need a real retail location, well in
that case, you want to really consider a Virtual Office, now Virtual Office is only available from
places like Regus Davinci Alliance, it's not a mailbox from places like iPostal PO boxes
or UPS addresses matter of fact those you want to avoid at all cost, you never want to get a UPS
address or an iPostal address or a PO box and use that as your primary address but if you go through
Regus Alliance or Davinci and get a virtual office then that makes it look like you occupy a building
in Tampa, Florida and a high-rise even though you could be theoretically working from home now
if you can't afford a virtual office, well the next thing you want to do in the last resort
is to use a home address, but you need to know a couple things first of all, sources like Dun and
Bradstreet are now including a Google street view of your business on your business credit reports,
so don't be surprised that lender's credit issuers, even you will see a picture of your house
on your commercial credit report, the other thing to keep in mind is if you use a home address there
are just some lenders and credit issuers that will not issue you credit, will not lend you money.
So for example Walmart, you're not going to get a corporate credit card without a personal guarantee
or credit check if you use a home address but Amazon you will, so this is what to keep in mind
if you want to set your business up to be the most fundable to have the strongest fundable
foundation then you want to have a separate business address, preferably a retail location or a
virtual office, but at all cost you've got to avoid PO boxes UPS addresses and iPostal type of PO box
addresses.
My 4th tip is that you want to get a separate phone number for your business, look one of the
worst things you could do is use a mobile phone or a home phone on your application for credit
and financing as your business phone number lenders and credit research computers immediately
recognize those phone numbers for what they are home phone numbers or mobile phones and you
lose a lot of credibility, so you can go to places like RingCentral or FreedomVoice or a lot of other
voice over IP or virtual phone providers and get a separate phone number for your business
while you're at it, make sure the phone number is toll-free and also make sure it's listed
with 411 look for listing with 411 is one of the secret credibility checks that a lot of
lenders and credit issuers have, just because your phone number is listed with 411 goes a
long way to giving you a lot of credibility for your business, so make sure you get a
phone number for your business, make sure it's toll-free, and make sure it's listed with 411.
And my 5th tip is you want to make sure that you actually have a domain and a website
for your business now preferably your name of your business will be the actual domain
so for example, our domain is creditsuite.com and our company is Credit Suite that kind of
congruence is exactly what lenders and credit issuers want to see, and it's what will give
you a lot of credibility and you want your email address to match the domain as well
so our domain is creditsuite.com and our email is info@creditsuite.com you want to stay away
from AOL or Gmail type email addresses because you lose a ton of credibility when you use them.
So make sure you get a website, make sure the website's set up that's a professional website
stay away from places like Wix where you don't host the website, make sure the website reflects
the products and services that you offer and make sure you have an email that's congruent with your
domain if you do these things it goes a long way to helping you build that fundable foundation.
Now my 6th tip, is that you need to have a business bank account and this is so
important for so many reasons, first of all there's a lot of financing out there that's available
with just 6 months of you running consistent money through a business bank account but you
have to separate, you can't be using a personal bank account to run money through this
co-mingling the funds will cause all kinds of issues when it comes to getting financing, so the minute
you set up your business, and you have your EIN and you have your entity set up you want to set up
that business bank account, just because you're running money through there 6 months down the
road opens up all kinds of funding options for you, but it also calculates into multiple scores look a lot
of entrepreneurs don't even know that there's multiple credit scores they have that actually
just look at how they manage their bank account so two of these for example are check systems and
your bank rating and both the Bank Rating and Check Systems that lenders and credit issuers
look at to determine if you should be approved for credit financing how much you should get and
the rates and terms you'll pay look at how you manage your bank account and take into account
how long you've had your bank account open for so the longer your bank account's been open the
easier it is for you to be able to get the credit financing you want at the terms you want to get.
And my last tip tip 7 is get a business license look there's a lot of industries there's a lot
of Counties and States that don't even require this, but we found that having a
business license goes a long way to helping you build a fundable foundation and creating
a world where lenders and credit issuers want to give you money, so I'll give you an example
there's a great starter vendor that you can use when you start building business credit
called Grainger just because you have a business license and you submit it to Grainger often times
means they'll give you a $2,500 credit line just because of the credibility of having that license
even when lenders and credit issuers don't ask for the license submit it to them because again just
because you have a license for the business goes a long way to giving you credibility
now if you don't need one for your industry you can oftentimes just do a basic search on Google
for the County that you live in and the term business license and you'll find a license
you can get just for operating in the county that you're in even if you work from home
but anything you can do to try to get a business license do so because it goes
a long way to giving you the credibility you need to build that fundable foundation where
lenders and credit issuers want to give you money and give it to you at the best terms.
You want to know the best places to get financing do you want to get financing if you've been denied
before or even as a startup business, well make sure you click the link in the bio for resources
that will help you get the most amount of money at the best terms and if you got value from this
training well make sure you like and subscribe and keep your eye out for our next training
where we talk about more cool ways to get the money you need to start and grow your business.