Things to Remember
Complete Credibility Steps before filling out any applications. From this point forward, DO NOT give out your social security number, even if there is a spot on the application. You CAN leave it blank. Use your EIN exclusively.
Step 6: Business Licenses
Virtually every business needs some form of license or permit to operate legally. However, licensing and permit requirements vary depending on the type of business you are operating, where it’s located, and what government rules apply. Reasons for licensure: Revenue tracking for taxation purposes Businesses that sell taxable goods or services also need a…
Step 5: Physical Address (Not a home address)
The business needs its own physical address. Home-based businesses are considered high risk by lenders. Consider getting a virtual office with a virtual address. Do not use a home address, P.O. box, or a UPS box on your applications for credit and lending. There are entire companies dedicated to offering small businesses virtual addresses.…
Step 4: Separate Business Phone & 411
Your business needs to appear as professional and legitimate as possible in order to be attractive to lenders and potential creditors. Your business must have its own phone number that is a real business or VOIP number, NOT a mobile or home phone. List it with 411 under the exact business name you are using.…
Step 3: Business Bank Account
Your business needs to have it’s own bank account. Having a business bank account will allow you to keep your business funds separate from your personal funds for tax and legal purposes. Most lenders consider the start date of your business the day you open your business bank account, not the date on your Articles…
Step 2: Federal EIN
As an individual, you have a Social Security number for identification and taxation. Your business needs an identification number too. This number is called an “Employer Identification Number” or “EIN.” You need an EIN to open a business bank account, as well as build business credit. “But I already have an EIN number” Sometimes,…
Step 1: Establish a Business Entity
BUSINESS CREDIT BASICS: CREDIBILITY So now that you know about the importance of business credit, let’s talk about how to build it and what credit vendors and lenders are looking for to determine if you are or are not lendable. Building your credibility is essential to getting approved for business credit. When you insure your…
Credibility
So now that you know about the importance of business credit, let’s talk about how to build it and what credit vendors and lenders are looking for to determine if you are or are not lendable. Building your credibility is essential to getting approved for business credit. When you insure your business is setup credible…