The Benefits Of Business
Credit

Having access to business credit is the lifeline for a business. It enables you to obtain the capital you need to expand, cover day to day expenses, purchase inventory, hire additional staff and allows you to conserve the cash on hand to cover your cost of doing business.

9 Fundability Foundation Steps

1. SELECT A BUSINESS NAME

There is a lot that goes into a name! Make sure your business name can be trademarked, doesn’t include any high-risk industries and can be or is filed with the state before you build your business further.

2.ESTABLISH A BUSINESS ADDRESS

It’s important for a business to have a business address. In order to have a strong business foundation, your business should use a physical business address. Most lenders prefer that you have a business address but, you can use your residential address. Do NOT use any type of PO Box for your business address. Many lenders see this as a higher-risk business address. What’s most important is that your business address shows the same on ALL business records.

3. FILE A BUSINESS ENTITY

It’s important that you have a strong business foundation and it all starts with filing your business entity with your Secretary of State.  Each state has a different filing and fee structure.  Like a birth certificate is to an individual a business entity is the birth of a business.

4. APPLY FOR YOUR BUSINESS'S EIN#

The United States requires all business entities to file for an EIN#.  Like a social security number is to an individual an EIN# is to a business.

  1. BUSINESS PHONE # & 411 LISTING

Does your business have a phone number? Creditors prefer to see actual business phone numbers opposed to personal cell phones or residential phones. It’s important to also list your business phone number in the National 411 directory.  Keep in mind that unfortunately cell phone numbers can’t be listed in the National 411 directory. We can list your Business Phone number if you choose one of our recommendations below. The companies we recommend allow us to list your number in the National 411 directory.  All you have to do is choose Yes below and fill in the information requested.

6. SET UP BUSINESS WEBSITE & EMAIL

A business website can drastically affect your growth.  Clients and lenders are looking for your business online.  What message are you sending online?  Do you have an established website that portrays the image you want?  For example: george@gmail.com as a business email address doesn’t look as professional as george@mybusinessname.com.   Having a business website and email can build credibility. Though not required we recommend that you have a business website and email.

7. GET YOUR REQUIRED BUSINESS LICENSES

Every city, state, and county within the United States have different licensing requirements.  Make sure you have all the required licenses.

8. SET UP YOUR BUSINESS BANK ACCOUNT

All businesses big or small, new or established should set up a business bank account.  A business bank account opens up financing options.  Additionally, a business bank account affects the business in both accounting and legal departments.  

9. MERCHANT ACCOUNT

A Merchant accounts allows your business to accept credit cards and debit cards.  Statistically customers will spend more if they can purchase by card.  Merchant processing under your business name also increases your finance options.

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To maintain your business credit score, you must continue to build healthy financial habits, such as paying your bills and taxes on time. You should also monitor your business credit score for accuracy.