It’s important when you’re starting a new business to understand how to set your model up. If you’re a business that’s already established and making it, you might not have the same issues as a new business starting out. This article will be for the business owner looking to get financing. It doesn’t matter if you’re an existing business or new business either way you need to know what to do. There are important steps you should take as a business to line yourself up with the lending market requirements. The banks and lenders have a model of a business they want to lend money to. It’s important you know where to start. Let’s talk about what compliance is and means.
Before applying for credit for your business you should have a game plan or a business plan in place. This plan acts as a guide to keep you on course. Talk to your local professionals and seek their advice. Let them know what your plans are and how setting up your business will best benefit your needs and goals. You’re going to be setting up a Corporation or an LLC. After establishing your new entity you need to get your EIN number. Now once all this is complete your have set the boundary. You now have a clear separation between yourself and your business. Your business has an EIN number and you have a Social Security Number (same number of digits if you count them just sequenced differently).
Next take this “new” identity you set up and get yourself out there. Establish a separate business phone number in the company name. Set up business emails for you in just the company name something like <a href=”mailto:[email protected]”>[email protected]</a>. Make sure the business land line is registered with 411. Banks will want to pick the phone up and dial 411 and see that you’re registered. Always answer the business phone in the Company name. Get exposure online. When you look for a car mechanic you look in the phone book or online and find what you feel to be the best mechanic. Now you don’t know much about this mechanic but you felt comfortable because they were easy to find and looked like they have great reviews. This is how your business needs to look. Make sure to register your business online with all free directories you can find, the more the better. You want people to feel just as comfortable as you did when you looked up the mechanic. Get all the exposure you can. Once you done this give it a week or 2 and then go online and simply put your business name into the search bar and see what you find. If you see yourself showing up in the search engines then you know you’re starting to get exposed. If you can easily find your business so can anyone else.
Your almost compliant at this point and lined up with the lending market requirements. Before applying for ANY credit you need to finish the process. Get registered with the business credit bureaus. They will establish you a separate number for your business that you can now use to access credit from vendors and lending institutions. Use your business credit profile numbers that were issued to you by the business bureaus and start building credit. Remember if you don’t want to use your personal credit to fund your initial business start-up then you need to know what compliance is and align yourself properly. Not doing this will hurt your chances of establishing proper business credit. Now that you have all these items in place you can feel comfortable knowing your Business Compliant.