These 8 steps to business Credit are the simplest method to get your business Funded.
Most business owners do not understand how to get their business funded so they use their personal credit and a personal guarantee for most of their business debts.
Want to find out how to build business credit with no personal guarantee?
This causes a big problem as the business owner then becomes liable for the business debts.
And if the business has financial problems, the creditors then start pursuing the business owner’s personal assets like their bank accounts and home.
You can prevent this easily. Business owners can build credit in their business name that requires no personal guarantee, and no personal liability.
This keeps business debts separate from the personal credit and keeps the business owner safe as there is no personal liability.
Many hear that this is available and are incredibly surprised. It seems they almost think it sounds too good to be true.
Let me give 8 steps to business credit
01 Business Address
Your Business Address especially important to business credit. Most lenders will not lend to P.O Boxes, or UPS addresses. Commercial address is the best because it shows lenders that you are an actual business. If you don't have a Commercial Address you can get a virtual business address with companies like Regus and Alliance Virtual Offices . That can get costly for a new start up. You last option should be a residential Address aka your home.
02 Filing your Business Entity
To get even considered for any form business lending you must Be a legal business. Start the process by going to your Secretary of State to file your Business Entity. There are lots of different business entities Sole Proprietorship, LLC, S Corps, C Corps, Partnerships to find out more about entities read this Steps to Incorporate For Business Credit or Funding your business should be an LLC or Corp.
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03 EIN/ TAX ID
Federal Tax ID is to your business what your social security is to you personally. Your Tax ID is what separates your business from you personally for legal and tax purposes. This is what will be used to track your business in conducting business its needed to get licenses and get business bank accounts. Go to IRS.gov to get a Tax ID
04 Business Bank Account
Your Business does not officially exist until it has a Bank account. A business banking relationship is pivot for money management, merchant accounts to take payments and conduct business. Find a bank that is convenient for you and where you will be conducting business
05 Dun and Bradstreet number (Duns
Dun and Bradstreet are the #1 Business Credit monitoring agency in this country. Most of the vendors that will extend you credit will report to your Duns number. To get a Duns number go to get a Duns Number. Some of the lender will ask for it for approval.
06 Business Phone Number
Your business phone number should be separate from your personal number. Professional Business number like 1800 or 866 show venders that you are professional. There are phones services to help you set up a business phone number. Comment if you need some help
07 Business Website and Email
Websites are the new Business cards! Better yet the new address. Lenders will make check to make sure your business is online. No series business today does not have a website. Your business needs a website and a professional email. Your email should be a business email like (Yourbusiness.com) not (Yourbusiness@gmail.com)
08 Get listed on 411
Yes, I know how old school 411 sounds. Like the white pages before the internet made things so much easier. Your small business will not be found online unless you publicly list it yourself.
Once your business is public then you can more to the next steps to get business credit for your Business
With these 8 steps you are on your way to business credit even as a new business with no personal Guarantees.
For all the steps to get business credit check out
Business Credit and Real Estate
I am Ghanaian Body building nerd who Loves Teaching about Business, Business Credit and Real Estate!